Our Views on the Post-Pandemic Future of eCommerce
Over the last year or two, we have witnessed how the global pandemic has practically rewritten the retail business. As retail shopping goes more digital and “touchless,” we are seeing a rapid change in the behavior of consumers, who previously depended largely on the physical brick-and-mortar mode of shopping.
John LeBron of Pattern talks about several new “pandemic shopping categories” like essential goods, in-room entertainment, and home-based projects that emerged as the leaders in 2020. The 2021 Future Consumer Index reveals that around 60% of American consumers are now visiting physical stores (lesser than prior to the pandemic), while 43% are shopping online for products, which they would previously buy at the local store.
According to Danavir Sarria of SupplyDrop, “eCommerce business owners have now experienced the greatest disruption in the economy since the Great Depression.” In the post-pandemic era, will eCommerce continue to dominate, or will shoppers start heading back to retail stores? Most industry experts believe that online shopping will continue to expand and accelerate. Emarketer estimates that eCommerce will grow at 13.7% in the year 2021 to reach over $900 billion.
Here is what we think will be the 5 significant post-pandemic trends in eCommerce retail.
5 Post-Pandemic Trends in eCommerce Retail
The post-pandemic future of eCommerce is likely to be driven by these 5 trends, namely:
1. Social commerce
2. Growth of small eCommerce businesses
3. Fulfillment centers & faster deliveries
4. Diversified supply chains
5. Technology tools for CX
Let us look at each one of these trends and how they impact the eCommerce retail business.
1. Social commerce
Walk into any social media platform like Facebook or Instagram, and users are likely to see online ads (based on their individual preferences). Shoppers can now view in-app shopping options on TikTok and Pinterest.
Social commerce is projected to drive the next phase of eCommerce shopping. By the year 2027, social commerce will drive over $600 billion worth of online sales. Retail giant Walmart is also planning to sell its product (using social media influencers) on the TikTok platform this year. Venture capitalist, Bing Gordon agrees by saying “the potential of social commerce today is ‘infinite’” and adds that “every eCommerce site will have to adapt” to this growing trend.
2. Growth of smaller retail businesses
Over 2020, Amazon has continued to dominate the eCommerce space accounting for nearly one-third of U.S sales growth. While eCommerce giants continue to grow, smaller retailers are also discovering a “business lifeline” through eCommerce. eCommerce platforms like Shopify and Squarespace have made it easier for small retailers to “go online” and sell their products.
The eCommerce medium has helped small businesses survive and also thrive during the 2020 pandemic. Karolina Cala of Levitex talks about the “big shift towards shopping small and local, but online.” This growing trend is unlikely to subside in the post-pandemic world.
3. Fulfillment centers and faster deliveries
In the wake of pandemic-imposed restriction, a major shift has occurred when it comes to providing fulfillment options to consumers. Be it through curbside pickups or the “Buy Online Pickup in Store” (BOPIS) model, fulfillment centers emerged as an alternative strategy for eCommerce retailers.
The 2021 Future Consumer Index predicts that around 37% of American consumers will continue to buy online and pick up from retail stores in the post-pandemic phase. At the same time, same-day (or faster) deliveries are now becoming the norm with over 88% of consumers willing to pay more for them.
4. Diversified supply chains
Among the valuable business lessons, we have learned from the global pandemic is the disruption that it brings to factories and supply chains. Disrupted supply chains result in stopped productions, canceled orders, expensive shipping, workforce problems, and more. According to Danavir Sarria, “this kind of disruption will only grow faster” in the future.
A diversified supply chain will emerge as the new “mantra” for global eCommerce retailers. Sellers need to realign their business around geographical regions that are less prone to disruptions. Further, cross-border services such as global fulfillment and parcel consolidation will emerge as part of the diversified supply chain.
5. Technology & Customer Experience (CX)
The acquisition of technology startup, Zeekit by the retail chain Walmart is a growing indicator of how retailers are leveraging technology to provide better customer experiences. Deep learning technologies like Artificial Intelligence (AI) and Machine Learning (ML) continue to revolutionize online shopping through virtual try-on, personalization, and automated supply chains.
Similarly, communication tools like live chats have improved customer satisfaction by 85%. Emerging technologies like Headless CMS and Augmented Reality are also going mainstream in the eCommerce space. Jason Goldberg of the Publicis Group explains that “the move to virtual try-on helps reduce returns and boosts sustainability.”
How do eCommerce retailers adapt their business for the post-pandemic market? Here are a few tips.
How eCommerce retailers can succeed in the post-pandemic market
Even as we enter the “new normal” of the post-pandemic world, it is unlikely that retail will go back to its pre-pandemic state. With the growing number of customer touchpoints, retailers must focus on providing a consistent and unified shopping experience through faster eCommerce deployment.
A true omnichannel approach is a way ahead for brands to make themselves available wherever consumers want to shop. Going by the latest industry statistics, retailers with an omnichannel marketing strategy retain 89% of their customers, as compared to just 33% for companies without an omnichannel presence.
Customer experience is now evolving from a “purely” transactional process in retail stores to an enriching brand-consumer relationship. To succeed in today’s evolving consumer market, retailers must define their eCommerce investments around a few questions like:
● How to create an agile and flexible eCommerce platform that can address the customer touchpoints?
● How to break organizational “silos” and coordinate eCommerce functions like operations, supply chains, and marketing?
● How to deliver a consistent CX through the entire customer journey?
Conclusion
Pandemic or no pandemic, retailers must be prepared to adapt their business model to changing consumer behavior and market needs. As a digital technology partner, Sapours has enabled its customers to enhance their digital consumer experience through optimized IT solutions. The Sapours Quick Development Framework has delivered faster time-to-value (and much more) for eCommerce companies.
Discover how to deliver a unified omnichannel shopping experience for your customers? Schedule a free call today.