How COVID-19 disrupted our Shopping behavior
The novel coronavirus (COVID-19) outbreak has pushed more consumers to shift their shopping habits online, according to the latest research from Ipsos. The outbreak has caused a severe disruption of businesses and services across the globe, and Ecommerce is no exception. While businesses across China, Europe, and America stopped instantly, the impact of the pandemic on Ecommerce is not so straightforward.
Impact on Ecommerce and Retail
As cities went under lockdown and social distancing became the new norm, consumers turned to online shopping to meet their daily needs. This resulted in a 52% year-on-year (YoY) increase in online sales and an 8.8% increase in online shoppers. Some might think this as a blessing in disguise for online retailers. But the story is not yet complete!
According to a report by Bloomberg, about half of the retailers have witnessed a downward trend in their online traffic since mid-February. Also, 64.5% of retailers have not witnessed any shifts to their Ecommerce stores post spread of COVID-19 virus in their country. This presents a somewhat mixed picture for the Ecommerce sector.
U.S. retailer's online YoY revenue growth went up by a staggering 68% as of mid-April, surpassing an earlier peak of 49% in early January.
There's been a 129% (YoY) growth in U.S. & Canadian Ecommerce orders as of April 21 and an impressive 146% growth in all online retail orders.
Online conversion rates increased 8.8% in February, reflecting a level of shopping urgency typically seen during Cyber Mondays, according to QuantumMetric.
Just over 306 million Americans are affected by stay-at-home orders, nearly 95% of the U.S. population. COVID-19 will forever change retailing, and its initial impact on Ecommerce is creating challenges to online selling and service, that no one imagined even in January. The following graphic from COVID-19 Commerce Insight, an Emarsys initiative in cooperation with GoodData, show YoY revenue growth comparing between 7-14th May 2020 to the same period in 2019:
Mobile devices are the most popular channels for online shopping by a wide margin. 72% of consumers are using mobile devices to shop in stores according to the latest PYMNTS' 2020 Remote Payments Study. Further, Ecommerce and online retailers' supply chains, order management, and fulfillment systems are all being tested by the triple-digit increase in order volumes. As a result of this, more energy and intensity are being put into improving customer experiences online.
Change in Shopping Behavior
Paradoxically, quarantines have helped families come together and spend more time with one another and mitigate gaps so many families and friends have had in their lives. Many are reluctant to go back to old shopping habits for fear of getting sick. A recent Morning Consult study found that 24% of consumers said they wouldn't feel comfortable shopping in a mall for at least six months. Only 16% said they would feel comfortable in the next three months. The results are based on surveys with 2,200 U.S. adults between April 7 and April 9. Consumers are more motivated more than ever to stay home and shop online, creating the ideal market conditions to fast-track, test, and launch new experience-driven mobile apps, sites, and touchpoints across their platform.
Millions of customers changing their behavior at the same time to opt for a more time saving, and convenient shopping puts considerable strain on Ecommerce and online retailers today. How retailers choose to react will further establish the future of Ecommerce. Many retailers are willing to remove the friction that stands in the way of turning occasional customers into the most loyal. To add further, retailers are starting with securing online identities and protecting accounts of their respective customers from takeover control. The behavioral changes are already in motion to completely change the retailing landscape and commerce overall for years to come.
SAP Commerce for your Ecommerce business
Ecommerce platforms such as SAP Commerce (Hybris) have proven to be very efficient in assisting business ventures capitalize on the growing Ecommerce trends during this change of customer behavior. SAP Commerce (Hybris) being an Omni-channel commerce solution seamlessly integrates all selling channels and solutions into a single platform. It helps you provide consistent, meaningful experiences to your customers at every touch point and on every device.