The state of the U.S. economy (and much of the world) has been overwhelmed with retail shutdowns, occupancy limitations and supply-line bottlenecks, but there is one area that is showing rapid, exponential growth: e-commerce.
During the early days of the pandemic, when stay-at-home orders and retail shuttering were first announced, essential businesses saw an influx of purchases as people prepared for (what we thought would be) a short-lived interruption in our lives.
As weeks turned to months, many have come to accept that we are in this for the long haul. With this acceptance comes a more permanent change in our routines, and it seems our gradual transition from in-person retail shopping to online purchasing has shifted into overdrive in the second quarter of 2020.
This shift has lit a fire under brands, forcing them to push their e-commerce initiatives into high gear to give current customers a way to purchase online and capture the attention of new prospects.
So what exactly is happening? What does it all mean, and what can you do to take advantage of this new e-commerce gold rush? Let’s find out.
E-Commerce Growth In Q2 Shattered Records
In the second quarter (Q2) of 2020, e-commerce purchasing skyrocketed by over 44%. For some perspective, this 44% growth is more than the past several years of e-commerce growth combined. In only three months, many e-commerce purchases that were once “nice to have” were relabeled “need to have” for those quarantined or sheltered in place and those who prefer a more socially distanced buying option.
It was reported that, over the past six years, e-commerce typically grew between 10% and 15% annually, with regular seasonality fluctuations. In the final quarter of 2019, this growth rate was hovering at 14.85%, meaning that by Q2 of this year, this growth rate nearly tripled.
This kind of growth shows that there is still plenty of opportunity for brands willing to join the e-commerce ecosystem.
With E-Commerce Acceleration, Brand Loyalty Takes A Back Seat
With this influx of consumers searching online for the products they need (or want), convenience is taking precedence over brand loyalty. These cracks started to show in the early days of the lockdowns when grocery stores were flooded with people stocking up and leaving store shelves bare.
Many shoppers were forced to try new brands due to the unavailability of their usual fare. This same wave is carrying over into e-commerce purchasing. The usual default is convenience. We can quickly click and swipe our way to what is currently available or even shop from a different source.
As e-commerce search fluency rises and the need for convenience remains constant, the loyalty that brands worked to build may continue to dwindle as the year presses on.
New Habits = Lasting Habits
One question that business owners may be asking themselves right about now is, “Will this e-commerce trend last?” But a better question may be, “Do I really want to wait to find out?”
The implications of this e-commerce shift’s staying power should be top of mind for most brands. According to Healthline, “It can take anywhere from 18 to 254 days for a person to form a new habit and an average of 66 days for a new behavior to become automatic.”
As I’m writing this article in late August of 2020, the United States has been under some level of restriction for close to eight months. This is roughly 240 days of consumers getting used to turning to their mobile devices to purchase what they need — and the clock is still ticking away.
Will there be some correction? Probably. But there are two things to consider. First, we will likely not have a 44% retraction — unless the internet crashes. So, waiting for things to go back to normal at this point is a dangerous gamble. Second, e-commerce is what is working right now, and who knows how long “right now” is going to last.
How Can You Quickly Ramp Up Your E-Commerce Capabilities?
If your digital doors are already open, you’re in good shape, but you may still need to reevaluate and take things to the next level. If you have yet to hit the “start” button on your e-commerce shop or system, maybe you’re not sure where to start to capture your fair share of this e-commerce opportunity. Whichever bucket you fall into, here are a few things to consider:
• Establish your e-commerce site. There are a lot of e-commerce website platforms out there, but in my experience, a great place to begin is with a Shopify site. Shopify sites seem to fall into that sweet spot between user friendliness and scalability.
• If you have an e-commerce site, make sure your checkout is as smooth as possible and that you’re offering multiple payment options for those looking to make a purchase.
• If you have a great site and everything else is streamlined, you may want to expand onto other platforms like Google Shopping or Amazon. Consider adding a product data feed platform into the mix so you can push your products beyond your own website at a faster rate.
• Provide guest check-out options. If the world is looking for options, the last thing you want is to cause friction by forcing someone new to your site to create an account just for the pleasure of making a purchase from you.
• Put some basic marketing automation into place to catch those abandoned shopping carts from falling through the cracks. A gentle “you have three items in your shopping cart” reminder might be enough to bring that new prospect back.
With the state of the world as it is, the best thing you can do is focus on right now. Pivoting to e-commerce is not only a smart move but a necessary one. The opportunity is out there for the taking, even though the route has changed. Fill up the tank, buckle up, and hit the gas — we’ll see you at the finish line.
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