The COVID-19 pandemic has transformed our daily lives in countless ways, including the way we shop. As consumers adapted to social distancing guidelines and store closures, e-commerce became an essential channel for purchasing goods and services. In this blog, we will explore the impact of COVID-19 on e-commerce trends and behaviours.
Accelerated E-Commerce Growth
The pandemic has accelerated the growth of e-commerce, which was already on an upward trajectory. According to a report by eMarketer, e-commerce sales in the US grew by 32.4% in 2020, reaching $794.50 billion. This growth is expected to continue, with e-commerce sales projected to reach $1.142 trillion by 2023. The pandemic has forced many consumers to shift their shopping habits online, and many have discovered the convenience and benefits of e-commerce.
Shift to Mobile Shopping
The pandemic has also accelerated the shift to mobile shopping. As consumers spend more time at home, they are increasingly using their smartphones and tablets to browse and shop online. According to a report by Adobe Analytics, mobile shopping accounted for 52% of online sales in the US during the 2020 holiday season, up from 45% in the previous year. E-commerce businesses need to ensure that their websites and apps are optimised for mobile devices and offer a seamless shopping experience.
Rise of Contactless Payments
The pandemic has also accelerated the adoption of contactless payments, which enable consumers to make transactions without physical contact with payment terminals. This trend has been driven by concerns about hygiene and the need for social distancing. According to a survey by Mastercard, 79% of consumers worldwide now use contactless payments, and 74% plan to continue using them after the pandemic ends. E-commerce businesses need to offer a range of payment options, including contactless payments, to meet consumer preferences.
Increased Demand for Essential Goods
The pandemic has also led to increased demand for essential goods, such as groceries, household supplies, and personal protective equipment (PPE). According to a report by McKinsey, online sales of groceries in the US grew by 18% in 2020, while sales of home improvement and home office supplies grew by 30%. E-commerce businesses that offer essential goods need to ensure that they have adequate inventory and delivery capacity to meet consumer demand.
Growing Interest in Sustainable Products
The pandemic has also increased consumers’ interest in sustainable and eco-friendly products. According to a report by Accenture, 60% of consumers are more environmentally conscious due to the pandemic, and 72% expect companies to be more sustainable. E-commerce businesses that offer sustainable products or packaging can attract environmentally conscious consumers and differentiate themselves from competitors.
Importance of Customer Service
The pandemic has highlighted the importance of customer service in e-commerce. As more consumers shop online, they expect prompt and responsive customer service. According to a report by Zendesk, 90% of consumers say that customer service is important in their choice of a brand, and 47% have switched to a competitor due to poor customer service. E-commerce businesses need to invest in customer service technologies, such as chatbots and AI-powered tools, to provide timely and personalised support to their customers.
In A Nutshell
In conclusion, the COVID-19 pandemic has transformed e-commerce trends and behaviours in numerous ways. The pandemic has accelerated the growth of e-commerce, shifted shopping to mobile devices, increased demand for essential goods, and raised consumers’ interest in sustainability. E-commerce businesses need to adapt to these trends by optimising their websites and apps for mobile devices, offering a range of payment options, ensuring adequate inventory and delivery capacity for essential goods, offering sustainable products or packaging, and investing in customer service technologies. E-commerce businesses that successfully adapt to these changes and prioritise customer service will be best positioned to succeed in the post-pandemic world. The pandemic has also highlighted the importance of resilience and agility for businesses, as they navigate uncertain and rapidly changing market conditions. While the impact of COVID-19 on e-commerce may be profound, it also presents opportunities for businesses that are willing to innovate, adapt, and respond to evolving consumer needs and preferences.