As we entered a new year and a new decade at the start of 2020, eCommerce trends were relatively easy to predict and comment upon. But then the entire world and economy was turned on its head. In saying that, you might be surprised to learn that many predictions in the online retail world remain very relevant. In fact, analysts from Bank of America Merrill Lynch expect that throughout the world’s economy, we’ll generally see accelerated macro trends that would have otherwise taken years to play out.
According to Statistica, the global online market in 2019 equalled $3.5 trillion and 14% of the entire retail spend. In 2020, expectations topped $4.2 trillion and 16% of global retail sales. However in Australia alone, a recent Australia Post report has found that eCommerce sales grew by 80% year-on-year in the 8 weeks following the WHO pandemic declaration for COVID-19.
Let’s further explore the impact of COVID-19 on the eCommerce industry...
The impact of COVID-19 and how to plan for the future
eCommerce trends which appeared on the horizon a few years ago, are now coming to the fore in 2020 and beyond. These trends provide online retailers with an insight as to where they should be focusing their planning and investment. And with the COVID-19 challenges already faced by retailers at the start of 2020, business owners are going to have to plan and use their resources effectively if they wish to remain at the forefront of the industry.
COVID-19 is likely to be an ongoing part of life into the future, and in the meantime millions of consumers are creating and reinforcing new online buying behaviors and habits. So far, there’s been a 129% year-over-year growth in US and Canadian eCommerce orders as of April 21 and an impressive 146% growth in all online retail orders.
Even after restrictions were lifted, many shoppers have been reluctant to return to shops, at least until a vaccine is available. In fact, in the UK, 40% of those who returned to shopping found the experience less enjoyable compared to pre-COVID.
As a result, eCommerce retailers need to strategically plan for ways in which they can compete for consumer dollars. From mobile shopping and voice commerce to artificial intelligence, augmented reality and omni-channel management, there are a number of areas that should be considered for investment. While it may seem difficult to prioritize investment, it’s also worth investigating cost effective offshore outsourcing solutions for either the development of these features or other operational tasks that can then free up available budget and local resources.
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