E-commerce spending continues to rise in the wake of the pandemic
New research has found that more than half of future global e-commerce spending is expected to be online as a result of the coronavirus pandemic, accounting for 51% of global retail sales.
The report by consultancy firm Wunderman Thompson Commerce, polling 28,000 consumers, found that more than a quarter, or 27% of UK consumer spending is also made solely through e-commerce giant Amazon.
At the same time, the study found that consumers around the world would like Amazon and other online outlets to pay more taxes, with 56% wanting the company to make a larger contribution.
Despite public unease over the amount of taxes that large e-commerce organizations pay, consumers have developed an insatiable desire to shop online. The survey found that 72% of global shoppers believe online shopping is essential in 2020, especially during lockdown times. The appeal also continues to grow, with 73% saying ecommerce will be more important to them for the remainder of 2021.
However, somewhat surprisingly, two-thirds of shoppers globally said they would still prefer to buy with brands that have both an online presence and physical, physical stores. The study also highlights the growing need for businesses to digitize their operations faster in order to evolve with the demand for e-commerce functionality.
A good example is the success of marketplaces operated by Amazon, Alibaba, JD.com, Mercado Libre, and eBay, which now account for 42% of all online spending globally. And, far from making consumers nervous about the potential limits of sticking with one retailer to purchase goods, 64% of those surveyed were enthusiastic about spending their money through a single retailer’s market options. .
The presence of Covid-19 remains a significant reason to deter many consumers from shopping in physical stores, with 41% expressing concern about the prospect of setting foot in a store. However, the percentage has fallen from the 48% who said the same thing last year. Along with coronavirus fears, consumers also want a more consistent shopping experience and expect a smooth journey across digital and physical channels.
Retailers clearly have work to do, with 73% saying business owners need to improve to deliver the products, services, and overall experience they are looking for. Points of sale are therefore faced with strengthening all of their sales channels, including social commerce, which is becoming more and more essential in the e-commerce landscape. The research itself reveals that 44% of global consumers have already purchased something through a social platform, while 56% plan to do more in the future.
“2021 and beyond will mark the beginning of an era of more diversified online offerings, with marketplaces, branded sites directly aimed at consumers and social commerce all having a key role to play”, said Hugh Fletcher, Global Head of Consulting and Innovation at Wunderman Thompson. Trade.
âBusinesses need to ensure that this more complex online landscape complements their overall retail offering which needs to span digital and physical. “