Growth and Development of E-Commerce: Trends to Watch for in 2021
The COVID-19 pandemic shook many businesses to their core. There was no time to prepare, and adapting proved to be harder for some than others. Additionally, consumers found themselves doing everything online. Some of the most notable changes witnessed during this period include the closure of nonessential business models, an upsurge in freelance jobs, and increased online shopping. However, the pandemic has been a blessing in disguise to some business models, leading to the further growth and development of e-commerce.
E-commerce seems to be skyrocketing as most shoppers shun physical stores in their towns and opt for online retailers. In 2021, more and more shoppers are now buying their groceries online rather than in person. But that’s not all they’re buying.
Here are some of the growing online business trends to watch out for in 2021 and beyond…
Grocery Goes Online
Before the pandemic really started to rock the boat, the grocery space was lagging in penetrating the e-commerce environment. The Asian-Pacific region, which acted as an innovation hub, was the only promising region in online grocery sales. However, nowhere is the growth and development of e-commerce more apparent than the grocery sector.
On the global front, shoppers mostly started placing their grocery orders online while self-quarantining to comply with the lockdown restrictions. In early 2020, consumers began scouring the internet, visiting different sites in search of various goods. To meet this dramatic increase in demand, B2Cs started launching direct-to-consumer services as retailers polished their online visibility.
The increased growth of online shopping trends has also been inspired by other factors. For example, consumers enjoy the convenience of being able to buy products from the comfort of home. Furthermore, people trust online stores more today than they did just a few years ago.
Reports indicate that online grocery sales grew by nearly 53% in 2020. COVID-19 vaccinations may convince some consumers to return to shopping at brick-and-mortar establishments, but the fact is online shopping has become the new normal. In fact, 73% of shoppers have stated they’ll continue to use direct-to-consumer methods for buying essential products even after the pandemic is over.
The Growth and Development of E-Commerce Continues
According to Euromonitor International estimates, 17% of all product categories will be available online by this year—more than double the numbers from 2016. This just further demonstrates the growth and development of e-commerce. Most shoppers stayed in isolation throughout the better part of the year 2020. However, they became more reliant on online shopping stores.
The rate at which online shopping grew in 2020 is 24%, while in-store sales dropped by 7%. Three-quarters of retailers who participated in the Euromonitor survey expect that the pandemic-inspired growth in the e-commerce sector may lead to a permanent shift. Further, 21% percent of the retail professionals said that the rapid growth they've experienced in their businesses had been fast-tracked by at least three years.
The question that remains in the heads of retail professionals is what growth rate is sustainable looking into the future. Euromonitor forecasts that from 2020 to 2025, the e-commerce sector will record a 9.5% global growth rate. It further estimates that by the end of 2025, digital-based sales will record a total retail spend of 21%.
Potential in Growth Through Optimization
Aside from opening up more supply chains, there is massive potential for the growth and development of e-commerce in 2021 through optimization. The global digital markets can handle the massive sales expected to be seen in these markets without necessarily investing in any infrastructural enhancements. Even some of the product categories, such as fresh food and alcoholic drinks, which have been posting low sales, now show growth prospects.
E-commerce product categories such as apparel and electronics that are touted to be all-time best performers will also continue growing. In the same breath, businesses and countries in different levels of growth and development are also expected to grow exponentially as we move forward.
If you’re a small business, now is the time to dive into this trend if you haven’t already. This recent pandemic may have caused a negative shift in your business but bouncing back is possible.
- Do you know which of your products sell well? Emphasize those.
- Do you know which ones that don’t? Either rework them or drop them.
Something as simple as changing the packaging or updating it with relevant terms can have a major impact. Online retail is hard, but it’s better to hop on this trend than to ignore it.
The Latin America Growth Shift
For years, Latin America has been disregarded by investors. However, the COVID-19 pandemic has gradually started changing this trend. More and more tech-savvy entrepreneurs have started investing in various digital platforms.
Overall, this shift has inspired the development of direct-to-consumer services and improved website experiences. In addition, businesses in Latin America have started sourcing for partners that offer last-mile delivery services. The businesses have started extending their reach via popular social media channels such as WhatsApp, Facebook, and Instagram. For example, Walmart allows their customers in Mexico to place orders through WhatsApp.
Going the Last-Mile
Retailers have embraced the idea of enhancing their product delivery initiatives. In the post-pandemic period, retail professionals must upgrade their logistics networks to meet the new consumer expectations.
There are different options when it comes to last-mile strategies to explore. Some of the most effective approaches include creating consumer collection places, home delivery, and click-and-collect services. High-tech options such as robotics designed to deliver products to the consumer's home are also rising.
Investing in a credible digital presence is an excellent step in the right direction for your organization. Unfortunately, very few retailers view their businesses as the pioneers in setting the stage for digital transformation. Your ability to get to market fast and stay ahead of the competition begins with being the pacesetter for your peers in the industry. While the rest are busy exploring the digital terrain and wasting time in their boardrooms, you should take action and ensure your marketing efforts are effective.
Conclusion
Understanding the workings of these trends and their impact on the digital business environment will help you compete better. The power of big data, augmented reality, and voice search are some of the other exciting trends that you should pay attention to as a business owner.
But whatever your decision is when it comes to developing and growing an online presence, you need to collaborate with the right experts.
Building a solid online presence for your business is the best thing you can do. If your business seems to be struggling to compete, it's time to reevaluate your digital marketing strategy, e-commerce setup, and product packaging.
At Viral Solutions, we’ll help you boost your online visibility and consequently increase sales. Online selling is not going away anytime soon; the earlier you acknowledge the growth and development of e-commerce, the better. Take that bold step of transforming the way you do business by working with our experienced professionals. Request a FREE marketing audit today!
At Viral Solutions we are committed to seeing YOU succeed. It is our goal to grow your business with proven digital marketing strategies that will help your business for the long haul.
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