Top Five eCommerce Trends after COVID-19

Much of the increase in eCommerce under COVID-19 is expected to remain after the pandemic is over as consumers learn how easy online shopping is. Some consumers are likely to return to in-person shopping, particularly if they enjoy the social experience of shopping. This is particularly true for some sectors like grocery and clothing. Before looking at the top five expected eCommerce trends after COVID-19, it’s important to look at eCommerce during COVID.  

 

How to Prepare for eCommerce During COVID and eCommerce After COVID

Businesses have faced a tough climate over the past year. Figuring out how to handle the eCommerce increase during COVID was hard enough, but now businesses need to look ahead and plan for retail and eCommerce post COVID-19 as well. The pandemic has had a huge impact on business. Some sectors like hospitality, tourism, restaurants, and travel have seen many of their customers stay away. Other sectors like grocery stores, online streaming companies, and large internet retailers like Amazon have seen their online sales explode.

There have been some unexpected winners, too, as home renovators and home supply stores saw a boost in orders. eCommerce has been growing in importance for many years. For most businesses, having a website or an eCommerce store is no longer optional. Many of the eCommerce changes driven by the pandemic were an acceleration of existing trends, not a deviation. As the vaccine rollout continues and states reopen, businesses can expect a return to normal. However, the new normal won’t be the same as the old normal. Some of the changes due to the pandemic are likely to stay.

 

eCommerce Sales Growth During COVID-19

According to Forbes, online revenue for U.S. retailers is up 68% year-over-year (YOY) as of mid-April. That surpasses an earlier peak of 49% YOY growth in early January. This type of growth isn’t surprising. Many Americans started shopping more online so they could avoid going to the stores. Older Americans adopted eCommerce shopping in large numbers.

As of April 21^st, U.S. and Canadian eCommerce orders grew 129% YOY. Total eCommerce orders rose 146% YOY.

Conversion rates among U.S. online retailers have risen to almost 8.8%, mimicking the typical urgency displayed by shoppers on Cyber Monday.

 

Top Five eCommerce Trends after COVID-19

Much of the increase in eCommerce under COVID-19 is expected to remain after the pandemic is over as consumers learn how easy online shopping is. Some consumers are likely to return to in-person shopping, particularly if they enjoy the social experience of shopping. This is particularly true for some sectors like grocery and clothing. Based on our research, these are the top five eCommerce trends we expect to see following the pandemic.

1. Snap and Shop – This trend merges in-person and online interactions. Users will be able use their Smartphone camera to take a photo of a product they like, and then they can use an app to find that product in an online store. Pintrest has launched its own photo camera that interprets images and provides product descriptions. Pintrest has already partnered with several eCommerce stores, and there are other similar photo apps currently available.

2. Increase in Subscription-Based Models – Digital payments have become convenient and popular. This is partially due to companies offering a larger of number of payment options, multiple payment plans, and auto-pay. Companies are likely to move to subscription-based models to secure ongoing revenue streams and more convenience to their customers.

3. Increased Use of Social Payments – Social payments involve the transfer of money using social media. Many social media platforms have created social wallets for their users. Examples include Twitter Buy and Facebook Payments. For social media platforms, unveiling social payment options is a good move to avoid falling behind your competitors. eCommerce retailers that advertise on social media should be set up to accept social payments. While social payments are seamless and easy for consumers, the downside is that they are also vulnerable to hacking. Some people have weaker passwords on their social media accounts. It’s also common for people to remain logged in to their social media accounts on their mobile devices. If these devices are then stolen, social payment platforms may be easy for the thieves to exploit.

4. Expanded Fulfillment Options – During the pandemic, people began buying more essentials online. Retailers that weren’t already online scrambled to get their eCommerce stores up and running, or to improve their current eCommerce stores and provide a better customer experience. That means that online shoppers have many different options to choose from. They will not hesitate to abandon stores that don’t provide the experience or options they want. To accommodate shoppers, online retailers are likely to begin offering more payment and fulfillment options. This includes allowing consumers to buy online and pick up in-store.

5. Social Commerce Will Grow – Social commerce is when people buy products directly on social media. While they are related, social commerce and social payments are not the same thing. Consumers can engage in social commerce using social payments. In many cases, they can also buy items on social media using more traditional payment methods like their credit card. For business-to-consumer (B2C) companies, social commerce is one of the most important eCommerce trends to track.

 

How Can Retailers Adapt?

So how can online retailers adapt? Online retailers should use technology to provide the experience consumers expect. Both B2B and B2C consumers expect a smooth eCommerce experience from smart to finish, with multiple payment and fulfillment options. Fortunately, retailers don’t have to do it alone. CertiPro is ready to meet the needs of growing businesses. We offer Sage ERP implementations to integrate departments and streamline communication across your business. Our team of Sage-certified consultants and Magento-certified developers specializes in Sage Magento integrations so that you can provide the eCommerce experience your customers expect.