As we wrapped up 2020, we’ve had a few takeaways from how the year began and how things unwound towards the end. Businesses were forced to switch up their methods and operations to adjust with the effects of Covid-19. Social Distancing and Work From Home have become the new normal, and some of the changes brought about by the pandemic are very much here to stay.
In the world of ecommerce, however, we’ve noticed a few things that we think have modified the way businesses operate for the foreseeable future.
Shift in Customer Behavior
The world had to embrace social distancing, and with strict lockdown rules forced B&M stores to shut down indefinitely, which inevitably exposed us all to the conveniences of online shopping. Shoppers who once shied away from buying products were forced to get accustomed to the ease of online shopping. A survey by Engine found that people are spending on average 10-30% more online.
The Ease of Shopping Online
People from all walks of life and age groups now got a taste of shopping online and having products delivered to their doorsteps. This is a major breakthrough in the e-commerce industry, and we believe that this shift in shopping habits among customers is here to stay for a good while, and even long after we beat Covid-19.
Humongous Growth in E-Commerce Revenue
The growth the e-commerce industry experienced during the pandemic has set the bar high, and is now considered to be the benchmark for growth. With the industry witnessing a whopping $600 billion increase in revenue in 2020 when compared to that in 2019, experts predict that the number would grow by at least 45% in 2021. While it isn’t as significant as the growth in 2020, it’s worth noting that experts didn’t predict to reach this level until 2024.
What to expect
The momentum at which the e-commerce industry boomed in 2020 is set to increase steadily well into 2021. Statista shows that the average growth is continuing at an average rate of 15% Year-Over-Year. We will see more stores going digital in 2021, and there is no doubt that online marketplaces will continue to dominate the year.
While there is a very good chance that we would beat Covid-19 in 2021 as the entire world is racing towards vaccines, the effects it has left us with in the world of e-commerce is going to be felt for a long time. Experts have claimed that the evolution in the industry has been fast tracked by at least 5 years, which implies that the future is now, and it’s here to stay.
