Assessing the Impact of eCommerce During the Pandemic
In the year when many industries were calling it quits and restructuring their business models, the eCommerce industry blossomed. In fact, 2020 was a year of growth for eCommerce during the pandemic.
As nations went into mandatory lockdown, consumer behavior towards online shopping moved towards positive. The pandemic spurred the development of the eCommerce industry to unprecedented heights that continue to 2022.
On the back of an already rapidly growing eCommerce environment and technological advancements, the global state of eCommerce will witness an increase in shopper conversion rates. Cross-border eCommerce transactions have also increased by 60%, as though people are trying to make up for the time the borders were closed.
As one of the fastest-growing industries globally (12.7% yearly), experts estimate that retailers would generate $1 billion in revenue on every $4.5 trillion worth of transactions. Most of this growth has roots in developed nations and their markets, but emerging markets also contribute. The contribution of the emerging markets is due to the rise in internet usage and credit card ownership. As a result, eCommerce during the pandemic created the stage on which we enjoy the eCommerce industry now.
The Impact of the Pandemic on eCommerce Growth
Coronavirus dramatically impacted eCommerce as it sent more shoppers online, driving up revenue for eCommerce merchants. The pandemic also affected supply chains, stressing merchants and forcing them to adapt rapidly.
Although the pandemic started in December 2019, as of June 2020, an estimated 2 billion people worldwide went under lockdown orders. With millions of people under lockdown and unable to frequent their local mall or grocery store, eCommerce has become their primary shopping channel for food and other necessities.
While some retail categories were seeing declines in revenue due to the pandemic — such as restaurants and apparel — many others experienced a surge in sales as consumers increasingly turned to online shopping.
We can grasp the state of eCommerce during the pandemic through some statistics provided in 2020.
- From March 1st through April 24th in 2020, online grocery shopping increased by 94%.
- In the second quarter of 2020, U.S. eCommerce sales grew 40% compared to the previous year and represented 13.9% of total retail sales.
- In the third quarter of 2020, U.S. eCommerce sales increased by 32.4% compared to the previous year and accounted for 14.3% of total retail sales.
- In May, 30% of consumers said they would continue buying groceries online after COVID-19 is no longer a threat.
The coronavirus pandemic led to more stores ensuring that their store is suited for mobile commerce. People were spending more time at home and being on their smartphones. And it's not only about young people who are willing to buy via mobile devices but also older ones who have no choice but to shop online.
More businesses also developed online footprints; brick-and-mortar stores also joined the feast as they also took their products online since stores were not open. Social media campaigns increased due to the pandemic because it is one of the easiest ways to reach customers online.
The Trend of eCommerce Sales in Post-Pandemic
With the lift of the lockdown, most people have resumed their usual activities such as traveling, shopping in stores, and going out. Despite the somewhat return to normal life, a couple of consumers’ pandemic behaviors have stayed. Here are some of the trends of eCommerce sales in the post-pandemic.
- Pandemic eCommerce Hysteria Settling: eCommerce may have provided a viable alternative for consumers navigating shopping restrictions during the pandemic, but the eCommerce fever is beginning to settle two years later. Research shows eCommerce growth returning to pre-pandemic estimates in emerging markets, signifying that many consumers gravitate back to their old shopping habits.
- Technology Playing a Central Role: Consumers are also embracing technological advancements in eCommerce in the form of augmented and virtual reality that provides a more immersive shopping experience. Furthermore, social commerce is also on the rise as social media apps are increasingly adopting one-click buy options on their platforms to gain higher conversions.
- Increased Consumer Spending: With more disposable income in the hands of consumers due to the time spent indoors, consumers are no longer holding back when it comes to spending.
- Brand loyalty disruption: The pandemic led to more eCommerce brands ditching online marketplaces for the DTC model to increase profit margins. By leveraging explosive marketing and social commerce, these entities disrupt existing marketing stereotypes and create newer trends.
The eCommerce industry took on a new turn during the global pandemic, and the post-COVID-19 setting presents massive opportunities for eCommerce to thrive. But only brands that are equipped with the right platform and marketing tools can take advantage of this once-in-a-lifetime phenomenon.
AllValue offers the perfect eCommerce solution to help you seize those opportunities efficiently, allowing you to automate order processing, inventory management, and product data feed in order to focus your time on business growth. Reimagine your business growth today with AllValue and enjoy a 30-day free trial offer.