Everything (strong acquisition but bear with me) is going to go digital from a future perspective, and e-commerce is a large portion of that. It was already happening but the 2020 world pandemic has accelerated that; the proof is in the pudding. A straightforward example is retail, and I’ll get to that. As we see storefronts reopening, we have also seen many go out of business, reaching the end of their physical existence but certainly not their be all end all.
A large portion of sales is going towards digital; growth is persisting with full momentum. Consumers have spent $861.12 billion online with U.S. merchants in 2020, that is up an incredible 44% year over year, according to Digital Commerce 360 estimates. That is the highest annual U.S. e-commerce growth in at least two decades. It is also nearly triple the 15.1% jump in 2019. The B2B e-commerce market is expected to grow at a compound annual growth rate of 17.5% from 2020 to 2027 to reach $20,912.4 billion by 2027.
Online share of total retail sales has steadily been on the rise, with e-commerce hitting 21.3% in 2020, Digital Commerce 360 estimates. That is up from 15.8% in 2019 and 14.3% in 2018. More than 10 years ago, e-commerce accounted for 5.1% of total retail purchases. Online sales now account for 21%, a striking jump from 16% in 2019. And now, due to extended lockdowns, the dependence on e-commerce deliveries has also grown tremendously. Customer expectations from retailers who offer home deliveries have also changed drastically due to the impact of the pandemic. To drive seamless contact deliveries, it is critical to embrace modern contactless delivery software. That is certainly something to think about!
Businesses are really trying to optimize digital strategies. Retailers are able to offer their customers more options in regard to home delivery (contactless opportunity), pricing, and coupons. Coupons! Who doesn’t love a good deal? Contactless delivery is another important factor. Additionally, websites tend to have more exclusive sales and discounts than in physical stores, and you may be able to find products that were not discounted in-store available online for a much cheaper price. If you are not price matching, you need to be. Mobile shopping is still on the move. Never did I think I would order my groceries from my mobile while sitting in the comfort of my home and have them delivered within hours to my front porch, but here we are!
Consumers of all sorts expect to be able to browse and make purchases. Many companies are still jumping online to compete for sales, and in today’s world, even those who have not shopped online are forced to do so. The global B2C e-commerce market is expected to grow at a compound annual growth rate of 9.7% from 2021 to 2028 to reach $7,656.45 billion by 2028.
The online stores expose the brand to more potential customers because of the wider range of products, privacy when shopping, and more convenient shopping (at the click of a button or even on smartphones). If it is the personal interactions shoppers are missing, Chatbots are being integrated in order to improve the shopper experience.
The world will work to keep up with the trajectory of a digital takeover; that growth trend is going to continue moving forward as though an irreversible train. All aboard.