COVID-19 brought significant changes in human behavior all over the world.
Many consumers became online shoppers, and now, it seems that they’ll continue to rely on eCommerce for a plethora of items.
In fact, many consumers who became first-time online shoppers are now hesitant to return to in-person shopping even though brick-and-mortar stores started reopening from the second quarter of 2021.
According to a study by Mastercard Economics Institute, eCommerce in the U.S. had 11% of total retail sales before COVID-19 Pandemic. But, at the peak in 2020, U.S. total online retail sales reached 22%. And in the mid-2021, it is still at 17%.
In Europe, these comparative figures are at 8%, 12%, and 9%.
The U.K., on the other hand, witnessed the strongest growth at 22%, 31%, and 24%.
Not only that but leading eCommerce companies have also witnessed high year-over-year growth with eBay at 19%, Walmart at 31%, and Amazon at a whopping 71% to name a few.
Changing Habits
Before COVID-19 Pandemic, eMarketer predicted that U.S. shoppers would spend $675 billion USD on online shopping in 2020, which would be a YoY increase of 13.2%.
But, the COVID-19 Pandemic boosted the retail eCommerce sales to $799 Billion USD at a 34% YoY increase.
And because of this, eMarketer now predicts that 2021 U.S. eCommerce sales will now grow by 13.7%, reaching $909 Billion USD. This means that the total eCommerce sales in 2021 will be more than $200 Billion USD than eMarketer forecasted before the COVID-19 Pandemic.
Apart from this, eMarketer has also projected that the 2022 eCommerce sales will surpass $1 Trillion USD mainly because the majority of consumers will not go back to pre-pandemic shopping habits.
Other Trends
- Post-Pandemic, shopping malls will continue to struggle a little for sales. According to Placer.ai, foot traffic at 52 Class A malls was 18.7% lower in April 2021 compared to April 2019.
- The option to buy online and pick up inside the store will grow in popularity, especially for those who are offering discounts to consumers for using this method.
- Worldwide Analysts predict that consumers will gravitate to spending more towards travel, live entertainment, and movies rather than purchasing physical goods.
- Before COVID-19 Pandemic, 7% of U.S. grocery shopping was online, According to Mastercard Economics Institute. But now, the same study predicts that 2021 U.S. online grocery sales will reach at 9% of the total.
- Since COVID-19 Pandemic, consumer expectations have grown especially for delivery. This is mainly because many online sellers delivered items within two-days during COVID-19 despite having supply chain challenges. A survey by Jungle Scout also found that as many as 68% of online shoppers now expect delivery within three-days.
- Venture Capital firms are now eagerly looking to fund eCommerce startups that are streamlining their order processing and beefing up their fulfillment capabilities.
Ending Thoughts…
As the world is now navigating its way out of the Pandemic, the way consumers shop has been changed fundamentally due to COVID-19.
More importantly, the research also indicates that this change will become permanent, leaving brick-and-mortar retailers struggling to attract & retain customers.
However, by adopting the eCommerce model, brick-and-mortar retailers do have a strong chance of surviving and succeeding in the market.
With that being said, if you have any questions or need our professional assistance with eCommerce model adoption, feel free to contact us anytime.
