The COVID-19 pandemic was a difficult period marked by changes, but it was also surprising for business owners worldwide. The global restrictions and lockdowns had a huge impact on people’s daily habits including shopping and everyone was surprised by the growth witnessed by eCommerce businesses. According to a report released by Adobe in 2020, the COVID-19 pandemic boosted the eCommerce industry by 77 as a lot of consumers replaced physical shopping with online shopping.
The pandemic altered and challenged the eCommerce industry. Many eCommerce companies enjoyed the unexpected success brought by the switch in consumer behaviour, while others experienced decreased sales. Shoes, clothes, and travel-related goods and services saw a decrease in demand, while the sales of electronics, garden equipment, and kitchen equipment soared.
All in all, the COVID-19 pandemic had a huge impact on how people shop and how they do business. Throughout this article, we will go over how eCommerce looked before COVID-19, how the pandemic changed consumer behaviour, and more.
Overview of eCommerce pre-COVID
The eCommerce industry was already a big player in the global economy even before the world was struck by the COVID-19 pandemic. It is safe to say that eCommerce would have grown with or without the pandemic, but most experts agree that this unexpected event led to a growth that exceeded expectations. The global value of e-commerce sales was around USD 3.9 trillion in 2019, USD 5.2 trillion in 2021, and it is predicted to increase steadily over the following years and reach USD 8.1 trillion by 2026.
As mentioned above, eCommerce was already a growing trend before the pandemic, and one of the key factors that contributed to its growth was the global use of the Internet and mobile devices. As more and more people gained access to technology, the popularity of online shopping rose. The wide variety of online marketplaces and the implementation of secure payment systems attracted even more customers. Another key factor that boosted eCommerce was the effectiveness and speed of delivery, be it same-day delivery or drone delivery.
Initial Impact of COVID-19 on Retail
The COVID-19 pandemic had a significant impact an global retail, as many consumers opted for online shopping during the lockdown. Online shopping was a lifesaver for many, whether they were unable to leave their homes, or simply preferred to avoid large crowds of people to avoid the disease. The rise in eCommerce activity was quite clear and accelerated the development of the industry more than industry experts predicted.
The pandemic was also difficult for eCommerce businesses as it brought many different challenges. For instance, a major issue for many online businesses was represented by shipping delays and supply chain disruptions. The sudden increase in sales made it difficult for online stores to deliver the customers’ orders in a timely manner and to scale their businesses to match customer demand.
Shift in Consumer Behavior
The pandemic impacted how people shopped, be it due to personal preference or COVID-19 restrictions. Worldwide, a lot of people were spending their time at home, unable to leave, oftentimes bored. As it turned out, online shopping was a great distraction and a newfound hobby for many. So, many online ventures thrived and a lot of brick-and-mortar businesses declined and had to close their doors.
Increase in Online Shopping & Growth in Specific eCommerce Sectors
For certain products and services, COVID-19 brought a significant increase in demand. The sales of items such as household supplies, groceries, cosmetics, and health products skyrocketed, and many online stores had to ramp up their operations and scale their businesses to meet this unexpected demand.
Emergence of New eCommerce Trends & Future of eCommerce
The COVID-19 pandemic significantly changed the eCommerce industry and here are some key global trends that we should expect to see post-COVID-19.
Steady growth of eCommerce – Even though the COVID-19 pandemic passed and most things got back to normal, online shopping remained a preferred practice for many customers. It is a convenient and fast solution that makes our lives easier. As our schedules become busier and busier, online shopping takes the place of the time-consuming habit of physical shopping. So, experts advise that eCommerce will continue to grow for the foreseeable future, especially with the help of eCommerce Growth Agencies.
Competition will increase – A successful industry leads to a boost in competition as more and more business owners want to be a part of this global trend. Businesses will have to invest more time, money, and effort into marketing strategies to differentiate themselves from the competition.
Customer experience becomes a priority – Providing a flawless customer experience will become a priority of eCommerce business owners, as competition becomes fiercer. To build trust and customer loyalty, online stores will have to provide a wide range of services and products, competitive prices, different payment options, fast shipping, and great customer service.
Technology and innovation – The COVID-19 pandemic accelerated the pace of the eCommerce industry and forced business owners and customers to adapt quickly. In the face of adversity, those who adapt survive, and the same applies to eCommerce businesses. Machine learning, artificial intelligence, and augmented reality are innovative tools that are already being widely used in eCommerce. What has become increasingly clear over the past few years, is that business owners need to be willing to implement new technology if they want to stay relevant.
A focus on sustainability – The COVID-19 pandemic was a worldwide crisis that shone a light on many of the world’s problems. As consumers become more educated about the impact of their shopping decisions, their attention shifts to more sustainable options and practices. As such, eCommerce ventures that are willing to reduce their carbon footprint and offer sustainable solutions will be more appealing to customers.
Adaptability is Key
The eCommerce industry is an example of resilience and adaptability as it rose to every challenge brought by the COVID-19 pandemic. Many businesses implemented digital marketing strategies and made use of innovative technologies to keep up with the ever-changing industry. By focusing on customer needs and sustainability, any eCommerce venture can become successful in the post-COVID-19 era.
