Top 10 E-commerce Trends in the post COVID-19
Top 10 E-commerce Trends in the post COVID-19
COVID-19 has drastically affected our lives for a whole long year. Moreover, it had also changed the way economics works. In particular, the pandemic urges everything goes digitalize, result in the significant growth of online commerce.
It is predicted that E-Commerce’s revenue will reach $6.54 trillion by 2022, up from $3.53 trillion in 2019. Therefore, to keep up with this fast-growing pace, businesses should update E-Commerce’s new trends of 2021. By doing so, enterprises can ensure business growth and outdo competitors in the same working field. Here are the top 10 online commerce trends in the post COVID-19.
E-Commerce Trend #1: Growth of online marketplace
During the pandemic, we have observed mass disruption in many economic sectors. This has led to an unsurprising reliance on E-Commerce.
Online marketplace which includes Prime Day and Singles Day has almost generated double of their revenue. By utilizing the right logistical and visibility tools such as customer relationship management systems, progressive web apps, cognitive supply chain management, and subscription services, experienced sellers can continue to target a cross-border market. This potential market is expected to reach a significant growth of 27%, nearly equal to $5 trillion by 2026.
E-Commerce Trend #2: Convenience over prices
COVID-19 has made the digital store more acquainting to many people. During quarantine time, people cannot go out and buy things like they used to. Consumers, with no other alternative, turned to E-Commerce to get everything necessary for their daily lives. Hence, shopping online quickly proved its convenient to customers.
Customers are developing new habits that affect how people purchase essential products, fresh foods, and beverages. They expect their shopping online experience to be more convenient than traditional methods in terms of options, payment, and delivery. These criteria have outgrown the importance of pricing in some way.
Therefore, to stand out in the digital commerce field, enterprises should consider the convenience of customers’ buying experience first, then comes the price.
E-Commerce Trend #3: Online buying will not be limited to B2C products
With E-Commerce becoming more and more common, necessities like food, fashion, and gadgets weren’t the only things people could purchase online. The category of online shopping online items has extended. Many new items such as groceries, furniture, vehicle parts, etc. have also been added to online stores.
The shift of online commerce from something people became dependent on rather than a simple convenience will not happen suddenly, but it definitely will slightly cause some impacts on businesses. Therefore, brands need to adapt their strategies accordingly to this trend to keep up with the market’s changes.
E-Commerce Trend #4: Make use of social media
Social media has been growing significantly throughout recent years, especially during quarantine time. According to Digital Growth Initiator Eduard Klein:
“Zoomers spend hours scrolling TikTok and Instagram feeds. Merchants are in seventh heaven; video is the perfect channel for reaching the curious young target audience. Gen-Z can make buying decisions literally from their social media feed, and videos let them shop straight away.”
So to make great use of social media, brands should take the next step in social media selling, which is advertising in different ways on channels such as TikTok and Instagram. In particular, brands should input links to buy products or links that lead to your online store, in video ads that running on social media platforms.
E-Commerce Trend #5: Influencers will become helpful
Along with the rise of social media, influencers, and KOLs have also been a supportive assistant for brands to leverage their vast audiences. It is very common to see brands work with KOLs in many marketing content on social media, from Facebook ads to Youtube branding videos.
Influencers, with a deep understanding of their audiences, are really great content creators that brands can collaborate with.
With the help from influencers, brands can advertise their product, or their promotion campaign more effectively. Just take a look at how many digital commerce platforms such as Tiki, Shopee, Lazada, have successfully made use of influencers to really leverage their brand and revenue within the last 2 years.
E-Commerce Trend #6: Wider range of customers
In the past, E-Commerce only popular with Gen Y and Gen Z, which is the generation that uses the internet for every activity in their daily life. However, the pandemic has brought online shopping to a wider range of customers, which is the elderly.
The elderly population is considered vulnerable to COVID-19, which means that they have to stay in quarantine much longer than the others. Therefore, to safely get the products and services they need, many of them are turning to E-Commerce.
By knowing this shifting trend of E-Commerce, businesses can come up with a better marketing plan that can meet a wider range of customers. Moreover, brands that target the elderly should also consider going digitalize to ensure their revenue.
E-Commerce Trend #7: Changes in customers’ buying demands.
As the range of customers gets wider, the taste of the market has also been shifting. A recent survey by Nielsen identified many consumer behaviorisms. The following five trends are especially interesting as a result of the pandemic:
- Buying health and wellness products
- Buying preventive health products such as masks and sanitizers
- Stockpiling on pantry items
- Buying in bulk
- Fewer shopping trips
This means that there will be an increased demand for certain groups/categories of products including health products, grocery products with long shelf-life, and preventive safety gear. Therefore, businesses should focus on aligning business goals with these new consumer behavior trends.
E-Commerce Trend #8: The importance of fast delivery
Changes in consumer behavior towards quick, efficient, and easy delivery times have set the standard for merchandisers. Lengthy online delivery times affect sales, with over a third of online shoppers citing long delivery times as one of the key reasons to shop in-store.
Therefore, in the roasting tournament amongst online stores, fast delivery plays a decisive role in adding competitiveness.
One-day delivery with a reasonable shipping fee has become the ultimate goal for brands.
However, logistics is a big puzzle for online sellers to solve, especially with cross-border stores. With hidden fees, high exchange rates, and pricey tax conversion costs associated with cross-border E-Commerce platforms, sellers will need to take the time to consider the right shipping solutions and international supply chains.
E-Commerce Trend #9: Diversify supply chains
E-Commerce stores should evaluate and rethink global supply chain plans when COVID-19 interfered with the world’s factories’ operation. Businesses stopped, orders were canceled, shipping became expensive, and workforce shortages are the risks of relying on components from one single market.
To prevent this, digital commerce sellers should map areas that are most vulnerable to further disruption and determine which areas to diversify. Online merchants should also find some regions that can produce a similar service or grade of product that a seller is accustomed to. With the right network, cross-border sellers will have better knowledge of international markets for further predictions.
E-Commerce Trend #10: Make use of AI and AR
AI and AR will be helpful online in-store assistants for your E-Commerce store. Artificial intelligence (AI) uses shoppers’ past purchase history and browsing behavior to show them products they are more likely to purchase. Augmented reality (AR) offers customers to see how a certain product would look on them even before they buy the product.
Implementing AI and AR in your online store can really upgrade customers’ buying experience. AI can make recommendations for what customers should purchase next based on their history. This technology can also help solve inventory problems by assisting on the backend to make inventory predictions.
In summary, E-Commerce sellers should keep a close update because COVID-19 has caused some major changes to the global economy. Follow these top 10 E-Commerce trends in the post COVID-19 we suggested to ensure a competitive place in the market.
Learn more about other technology trends – 5G: Why 5G technology such a rising trend of 2021?