While a return to normalcy will also somewhat decrease the unprecedented Ecommerce numbers seen in 2020, the general boost in online shopping and sales is here to stay.
As many countries are emerging into a post-pandemic world and learning to live with the virus, the effect the pandemic has had and is continuing to have on the global economy is becoming clearer every day. While people and many industries have suffered tremendously, one industry has experienced an unprecedented boom: Ecommerce. And it’s not over.
As people around the world were confined to their own homes in strict lockdowns, unable to visit shops or restaurants, shopping online became the go-to solution – and businesses scrambled to keep up and deliver the experience customers were expecting. Naturally, the largest, most established Ecommerce players were the ones to benefit the most, with Amazon experiencing year-on-year revenue growth in 2020 of 37.6% and Chinese giants JD and Alibaba seeing 29.4% and 40.9% revenue growth, respectively, according to analysis by GlobalData. South Korean platform Coupang and Chinese platform Pinduoduo saw staggering year-on-year revenue growth of 90.8% and 97.6%, respectively.
Online shopping wins due to convenience
And while it may have been a necessity during strict lockdowns, being forced to shop online may have convinced many consumers that doing so is actually more enjoyable. In fact, research by Bazaarvoice shows that more than 50% of consumers enjoy browsing products online more than in a physical store. They also do so more frequently (61%) and find it easier (64%).
So it’s no wonder that countless businesses decided to prioritize plans for an Ecommerce presence in 2020. Here at Niteco, we created an Ecommerce website for home appliance retailer Electrolux in the vital Vietnam market, going from discovery to launch in just four months. In the first full month of regular operation alone, the site saw more than one million pageviews and a healthy conversion rate for finished goods.
Sales growth is here to stay
Even a year after the initial spike in Ecommerce revenue, caused by the first major Covid peak in many countries in early 2020, revenue levels remained high. While online sales in the UK dropped by 9.1% year-on-year in May 2021, this was against a huge increase of 61% one year earlier. Compared to pre-Covid levels in May 2019, sales still increased by 46%, as Charged Retail analyzed.
While many consumers will (and, in many places, already do) revert to their pre-pandemic shopping behavior, the benefits of shopping for anything from clothes and electronics to groceries online can no longer be denied. And one thing is for sure: the later a company joins the Ecommerce bandwagon, the harder it will be to be successful and the lower profit margins will be.
Optimizing user flows and experience
What this major boost in Ecommerce sales signifies is not only a change of necessity, it’s giving consumers what they’ve wanted for a long time – a smooth experience when browsing products from the comfort of their own home.
As experienced Ecommerce professionals like Niteco know, an optimized flow is essential to achieving a healthy conversion rate. Baymard estimates that the average large-sized Ecommerce site can increase their conversion rate by more than 35% just by optimizing its checkout design. That’s why we recommend keeping the entire development process from discovery to launch and beyond in the hands of a single partner like Niteco. This ensures that flows are optimized from start to finish throughout the entire project, not just as an afterthought.
If you’re looking to take the step into Ecommerce, contact Niteco today to find out how we can help you. You can read more about our successful work in Ecommerce here.