August 15, 2020
As companies are adapting to the global pandemic and transitioning their operations to fit consumer needs, upcoming trends forecasted within ecommerce have changed drastically. We have seen a continuous rise in ecommerce activities as more and more consumers rely on digital transactions across the globe. Business Insider’s Global Ecommerce 2020 Report, led by eMarketer, states that the future of ecommerce and its positive outlook may not be spread internationally as we come to know which countries are at the forefront of this digital race.
Regions On The Rise
From Amazon wish lists to various subscription services, the modern consumer has a laundry list of goods and services to purchase online. The Global Ecommerce 2020 Report indicates that since the beginning of 2020, retail ecommerce sales growth worldwide has increased by 16.5 percent. Though this is a positive number for the retail industry as a whole, other sectors surrounding brick and mortar retail sales have not been up to speed given the effects of the global pandemic. Specific regions such as Asia-Pacific, transitioned fairly quickly to online services gaining a significant lead in ecommerce with a share of 62.6 percent. This leaves a tremendous gap when compared to North America and Western Europe with a share of 19.1 percent and 12.7 percent.
UK vs US: Views on Click and Collect
Previous reports pertaining to the rise of using digital technology to promote DTC strategies and developing brand narratives have all centered around American consumer behavior. The Global Ecommerce 2020 Report noted that even though consumers around the world are more reliant on the internet to obtain their everyday goods and services, the popularity and likeness of this method isn’t commonly shared on an international scale. When looking at the UK consumer behavior, it shows that home delivery and click and collect isn’t as favored by the population as it is in the United States. The options definitely have risen given the amount of opportunities the global pandemic caused for major retailers, but it is expected that some of these companies who are using this as one of their main forms of sales won’t survive post-pandemic. As stated in the report, this is great news for brands targeting American buyers, but not so much for other countries.
A Shift In Retail Platforms
As big as Amazon is, it is definitely not the sole platform consumers turn to when looking to purchase things online. Business Insider shines a spotlight on competitors who have seen a positive tick in retail spend on their platforms in specific countries like Canada. Alibaba for consumer goods, Google Home and Netflix streaming services have grown in popularity since the beginning of the pandemic. Along with top players in the ecommerce space, there are plenty of other B2B and B2C companies going head to head with Amazon and thriving. One of the main reasons people are turning to different ecommerce platforms is slow delivery time. The Global Ecommerce 2020 Report states that this one reason has allowed other retailers to claim greater shares within the ecommerce industry.
Business Insider’s Global Ecommerce 2020 Report allows us to view how the ecommerce space is performing in different countries, which ties directly to how consumers are reacting in the face of a global pandemic. The digital transitions major retailers are implementing in their marketing and operations may not work in other countries, and in turn, it can lead to a rise and fall in what was once stable growth. As we are halfway through 2020, we are excited to see the plan of action these companies will take as external forces continue to affect the expansion of the retail industry.