In 2020, when you think about something you want or need, what do you do?
Chances are you immediately grab your phone or sit down at a laptop computer. You go to Google and type in a few words that produce an endless stream of information about products and services. If you find something you think matches your needs, you keep clicking. Eventually, you buy it.
Ecommerce and internet access are such an integral part of everyday life today. Yet most of us take it completely for granted. In fact, it is only when we lose cellphone or internet reception that we realize how internet-dependent we all are.
Ecommerce Statistics to know in 2020
- In 2020, it has been 29 years since the internet was opened for ecommerce and online Shopping in 1991
- Today, 21.8% of the World’s population buys online, and over 79% of Americans shop online either on a website or via their smartphone
- It is estimated that over 80% of consumers today make buying decisions through online research and via social media influence
- On top of this, 97% of consumers will trust online reviews about products and services, even if they don’t know the person making the recommendation
- In 2020 the number of cell phone users is forecast to reach 4.68 billion. In the US, over 95% of the population has a cellphone that can connect to the internet
- In the first quarter of 2020, consumers spent $146 billion online with U.S. retailers. This is a 14.5% from for the same period the prior year.
- Between March and April 2020, total daily visits on Amazon.com were up 17% to 83.96 million visits.
As an ecommerce web development agency, we are always looking to the horizon. Here are some of the latest ecommerce trends in 2020 that are well worth knowing about and being prepared for.
One of the biggest shifts in the ecommerce landscape is the move to app-based purchases. Amazon has the most shopping app engagement, with 75% of smartphone users shopping via their app. This is followed by Walmart’s app reaching 44%, eBay reaching 31% and Target reaching 23%. This means rather than go to a website via a browser, users are staying inside the app of a specific company more and more.
The ability to simply subscribe to a product or service is becoming more a part of everyday life. McKinsey reports that 15% of consumers have now signed up for a recurring subscription or repurchasing program. Some brands have been able to increase their revenue between 100% up to 350% via the use of subscription services.
Many brands are exploring the concept of offering a discount for automatic re-ordering or for a longer commitment period. This is as true for digital media services (such as Spotify or Netflix) as well as consumer goods sites such as Amazon.
What used to be a gimmick on a phone is now becoming a viable ecommerce sales channel. It’s estimated that in 2020 over 30% of homes in the US own an Amazon Echo or Google Home, and over 98% of people have tried using Siri on their phone to make searches.
The next phase of this, which is already showing promise is voice-based shopping. Amazon reported that during the 2018 Christmas period, the volume of voice-based purchases via Alexa tripled. This is an important trend to be aware of, as the more users begin to adopt voice search, and voice purchasing, it can become a shortcut to access consumer attention.
Omni-Channel and Multi-Channel Selling
In 2020, the traditional retail landscape is completely different than even ten years ago. The two biggest changes are omni-channel and multi-channel selling strategies.
Omni-channel: means selling via both retail brick and mortar locations and online via a website. Often customers can order online and pick up in-store, or vice versa. Both the retail location and the online store deliver within a similar time frame, so there is no inconvenience for the customer.
Multi-Channel: takes this approach a step further, selling through social media sites such as Facebook and Instagram, or app-based shopping experiences. Companies such as Apple, Lululemon, and Amazon have really taken the multi-channel selling approach to a new level.
Today, over 80% of consumers will channel-hop between different types of purchasing options so it is important to know how to capitalize on this trend.
Same Day Delivery
One of the biggest drawbacks of Ecommerce purchasing has been the lag time between ordering and delivery. During the past 5 years, the popularity of two-day delivery through Amazon Prime has pushed market demand forward. Now, recent studies have shown that 88% of consumers are willing to pay for same-day delivery options.
For some ecommerce companies, this can be a lucrative offering. If your products are able to ship within 24 hours or less, it is well worth offering this to your customers as an option.
Five years ago the term ‘Venmo me’ was not common. But as the speed of adoption of new technologies increases every year, we have seen the adoption of money-sharing applications take hold. Square was the first to adopt a mobile-based payment option for small ecommerce companies, and now with Venmo, Zelle, and even Facebook Messenger offering peer-to-peer payment options, the trend is becoming the norm.
For an ecommerce provider, offering options such as Venmo or other types of app-based currency payments can be a way to innovate and add more revenue.
As the ecommerce landscape continues to evolve, we must see these changes as part of the new reality. There are so many exciting ways to connect with and add value to our customers today. All it takes is understanding the mindset and behaviors of the ecommerce customer.
Brandastic is an ecommerce development agency with offices in Orange County, Los Angeles, and Austin. We specialize in ecommerce website platforms such as Magento, Shopify, BigCommerce, and WooCommerce. Get your FREE marketing audit to discover ways we can support and help your business innovate.
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