As the COVID-19 pandemic continues to alter our way of life, the retail industry has been forced to adapt to these e-commerce trends.

Consumers have shifted to filling up digital shopping carts and prioritizing support for local businesses. This is only the beginning. According to IBM, e-commerce adoption has been sped by up to five years, due to lockdowns, nonessential business restrictions and social distancing, giving us a new perspective on emerging e-commerce trends. 

A distinction between essential and nonessential product categories has also emerged. The essential sector has had a rise due to an increased need for  food & beverage, household cleaning supplies and personal care products. The food and beverage industry in the United States alone is projected to grow by 11.3% year-over-year after 2020, whereas other industries seem to be on the downward trend. Non-essential sectors like apparel, furniture and electronics have seen numbers quickly drop. It is even projected that the fashion industry will contract by 30% in the years following 2020. 

As a new normal emerges for consumers, it’s important for brands and retailers to understand the shifts in consumer priorities, and how to capitalize on the rise of e-commerce. The information below is provided by the Facebook for Business report: The Future of Shopping Has Come Early: Perspectives From The Industry, published on October 29th 2020. This article details emerging e-commerce trends and how shopping has been redefined due to the Covid-19 pandemic.

A Re-Examination of Consumer Priorities

Safety and reliability are the new standards for in-store shopping

The early phases of the pandemic caused many to stay inside with FOGO, or fear-of-going-out, which naturally effected in-store businesses. Customers have started bulk shopping to reduce store visits and this is expected to continue in the future. 

In fact, safety and reliability have become increasingly important to customers. An estimated 71% of consumers globally say that safety is their main priority when shopping in-person and 68% indicate that it is important for retailers to have enough inventory in stock. It’s important that brands who still have storefronts promote this message of safety into marketing initiatives. 

Convenience, customization and delivery are key

Price remains a top priority for online shoppers, but now we see that convenience, delivery time and delivery options have also emerged as important priorities.  More than 70% of Millennials and Gen Z consumers have stated that delivery time is very important in terms of where they shop. Nearly one-third of Gen Z consumers can be influenced to make a purchase if next-day delivery is available. It’s important for businesses to place a significant amount of importance on their ability to make quick deliveries.

Brand values and social responsibilities are a Must

Brand reputation has always been important, but recently consumers have voiced a strong preference for brands that support the same values as they do. This is particularly important for young consumers, who are watching with interest to see how brands respond to social and political issues. 

A key social responsibility is the environment, with 49% saying they are more likely to buy from a brand that can show they are attempting to reduce their carbon footprint. Companies like Allbirds have pushed sustainability in the fashion industry forward by creating footwear made from singular materials that can be easily recycled. 

Supporting local has become a priority 

As lockdowns and restrictions have plagued the globe, many have shifting focus to local shopping to keep businesses alive and strengthen their communities. From February to May 2020, click searches for local businesses increased by 23% and more people are spending time in their communities. This has led to greater support for the local economy as consumers have made an effort to not only purchase from local businesses but also to recommend businesses to friends and family. 

The New Friction Points for Consumers

Customer service is more important than ever

When consumers experience friction like poor customer service or inconvenient checkouts, it can lead to lost sales and abandoned shopping carts. 

Not everyone is comfortable with online shopping

Although the pandemic has caused a rise in online shopping, there is still a big gap to fill. Only 27% of consumers consider themselves experts at online shopping, leaving the majority of consumers somewhat lost in the online retail world. Even with the added convenience that online shopping offers, some customers will miss the in-store experience and have doubts about their online purchase decisions. 

Companies need to create easy-to-navigate websites for customers not yet comfortable with online shopping and e-commerce trends. Companies may also want to consider more accessible return options. 44% of customers globally say that they often purchase multiple products to test at home before returning the products they don’t like. All of this points to the need for flexible return policies. 

The Role Reversal of Online and In-Store Shopping

In-store shoppers are becoming quicker and more-efficient

With the fear of catching COVID-19, consumers are demanding quicker and more efficient shopping experiences to minimize the time spent in-store. As a result, stores have begun new practices to address these concerns; reducing in-store capacity, more contactless payment options, and curbside pickup.

These consumers have also stated that they are planning their shopping experiences in advance to shorten time browsing in store, resulting in fewer spontaneous purchases. 

E-commerce trends are shifting to experimental forms to build trust

As online shopping continues to rise, 30% of shoppers state that the inability to touch or examine a product in person can deter them from purchasing online. To build more trust and lessen that statistic, companies need to shift their focus into new ways for consumers to experience their products. Some companies have begun to experiment with virtual and augmented reality to deliver a more immersive experience for customers. This shift may be the future as 63% of shoppers agreed that they would be interested in a VR/AR experience before purchasing online. 

Offering live streams, tutorials or demos of products online or from social media channels can help to build interest and add more of an experiential atmosphere to the customer shopping experience. 

Personalized advertising is expected by consumers

Although some may not approve of data-tracking and personalized advertisements, 66% of consumers agree that the role of this technology is to recommend products that meet their shopping needs. These technologies have created a new section of e-commerce called “discovery commerce” where instead of people looking for a product, automation helps a product to find the right customer. Social media platforms like Facebook and Instagram have become important information channels when it comes to providing shopping ideas. 

How Empathy, Transparency and Value Create Loyalty in Business

The disruption caused by the pandemic caused some consumers to rethink their shopping routines, experimenting with new brands.

The formula to repeat purchases

There are many different factors that drive repeat customers, like pricing, good quality products, and a reliable website. Ensuring a strong focus on these factors can be extremely beneficial for businesses succeeding in 2021.

Encouraging two-way dialogue 

Shoppers want to hear how businesses are handling the pandemic and what precautions they have in place to ensure a safe, shopping experience. 87% of consumers say that they are interested in hearing from businesses and want to keep in touch for new promotions and information about the future of the company.

The new wave of loyalty programs 

As the new wave of consumers emerge from the later months to the end of the pandemic, companies must introduce new forms of loyalty programs. Across all markets, the main benefit the consumers want are free services and faster access to new products and services. 

Overall, there is a new generation of consumers entering the market at an extremely unique time. Companies have to pivot their business models and ways of working to fit this new medium in a post-pandemic world. E-commerce options have taken the upper hand thanks to the pandemic, and will only continue to grow in the market. For more information regarding online presence and business, be sure to contact us!