#fashion | #technology | #retail
3 min read
Ecommerce sales are at a record high, accelerated by the pandemic and with plenty of competition. Here is what Shopify tell us to expect for 2021.
- COVID pandemic accelerated ecommerce growth to record high in just a few weeks. Ecommerce accounted for 16.4% of total global retail sales in 2020 (McKinsey).
- Record ecommerce competition. Growth in legacy wholesale, global retailers and product categories traditionally purchased offline moving online.
- "Many new competitors are not equipped to compete on customer experience, a top differentiator online, giving an edge to brands with immersive omnichannel experiences."
What has the ecommerce spurt done for consumer behaviour?
- Generation Z, Millennials and older generations are pushing this trend.
- Shopify reports 84% of consumers shopped online during the pandemic.
- 150 million people shopped online for the first time during the pandemic.
- 20,000 - 25,000 physical stores were expected to close in the US in 2020.
Going online looks great and the way forward, however there is plenty of competition driving up the price of advertising. We all know that without an advertising budget, even the greatest product will fail because consumers will be unaware of it. Revealbot reports that branded commerce and marketplace apps now cost companies more than $30 to acquire a customer. In addition, pay-per-click advertising has gone up by 40% from the start of 2020. This is driven by a switch from television to digital channels as more information and media is consumed online.
Although advertising prices online have increased significantly, there is a channel that remains constant. Email is the never-dying, cost-effective, sure fire way to reach your chosen audience at a fraction of the cost. There are so many platforms that exist (Mailchimp, etc.) that provide an email service. The response is also pretty good too. Yieldify reports that for every $1 spent on email, the return on investment (ROI) is $38. Not bad! Not only that 72% of people report they rather receive promotional content via email compared to 17% for social media. I believe the business term is win-win! Use it!
In addition to the email recommendation, here is what Shopify recommends for 2021:
- Optimize commerce across channels (retail, wholesale, marketplace, social media, etc.). Do this through a solid investment in tech. The key here is to be agile and maneuverable. Be where your customers expect you to be!
- Get your reporting straight. What are the numbers telling you? Can you trust them? Make sure the data you look at provides an accurate picture of what is happening with your business summarised across all the channels utilized.
- Prioritise the mobile shopping experience. If you are on your phone as much as I am you know what I am talking about. Rarely do I shop using my laptop these days. I would say its about 20% of the time. That doesn't mean ignore laptop users. Make your platform responsive to their environment.
Next up Trend 2: New consumer behaviors. All purchases are moving online with a focus on convenience and speed ! Enhanced digital experiences take the center stage. Find out how Size Me Up is revolutionizing shopping for clothes online.