E-Commerce Explosion Revamps Retail

E-Commerce Explosion Revamps Retail. The next ten years will be a digital decade for retail. That’s because this year’s COVID-19 pandemic catapulted global e-commerce into the future to bring the shopping mall to us. E-commerce sales soared 55% year-over-year for January to July, reaching $434.5 billion, after brick-and-mortar stores and shopping malls stayed shut for months.

The e-commerce boom has forced retail and consumer packaged goods (CPG) companies to rethink how to move forward. For many of them, adopting e-commerce best practices will influence whether their business survives by staying relevant.

Let’s see how e-commerce is shaping the retail supply chain and how retail companies can adapt, and how buyers can discover in-demand products and e-commerce capable brands.

COVID-19 ignites e-commerce growth

This year e-commerce evolved into a more familiar habit, as 58% of shoppers reported shopping online for products they would usually buy in-store.

During the pandemic, consumers made moreonline purchases in these top categories:

• Home goods (45%)
• Clothing (29%)
• Electronics (25%)
• Beauty/cosmetics (22%)
• Accessories (20%)
• E-grocery also jumped forward. U.S. online sales of groceries for delivery and pickup hit a record $7.2 billion in June, up 9% over May.
• E-commerce shows no signs of slowing down
• Consumers appear to value the convenience, time savings, and ease of e-commerce. Studies found that, over the long term, 45% of online shoppers don’t expect their shopping habits to change and 31% expect to make more online purchases than they did before COVID-19.
• While BOPIS was a niche delivery option pre-pandemic, it is fast becoming the delivery method of choice.
• Some retailers have turned to micro-fulfillment.Whole Foods and Kroger temporarily shut key urban store locations to boost e-commerce efficiency. Only employees are allowed in these dark stores, which the retailers strategically use for faster digital product picking and fulfillment.

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• To manage a marked increase in online returns, cosmetics giant Sephora doubled its returns period to 60 days, and promised to destroy all returned merchandise to keep employees and consumers safe.
• Given e-commerce’s remarkable momentum, Adobe predicts 2020 online sales will surpass last years total online sales by October — ahead of the next holiday sales season.
• Retailers transform their e-commerce strategies
• The pandemic has pressured retailers to invest in e-commerce to satisfy consumers’ expectations of omnichannel options, convenience, and speed. Here are some examples of how retailers have changed.
• Amazon
• The e-commerce leader currently holds 38% market share by US e-commerce sales and it earned a 40% jump in Q2 revenue.
• Walmart
• The retail giant is poised to surpass eBay as the second largest e-commerce retailer in the U.S., behind Amazon, as its e-commerce sales will rise by more than 35% in 2020.
  Target
• Target earned digital sales growth that the chain didn’t expect until three years from now. The retailer efficiently ships goods directly from its retail outlets, boosting agility and the speed of online fulfillment. During the quarter ended May 3, 80% of digital sales were fulfilled from Target stores.
• Home Depot
• To boost e-commerce speed, the home renovation retailer will open three new distribution centers in Georgia, as “customers expect to shop whenever, wherever and however they want.” The warehouses will help the chain expand same-day and next-day delivery capabilities to 90% of the U.S. population.
• E-commerce’s transformation of the CPG industry
• The e-commerce boom has inspired tech titans Facebook and Google to get in on the online shopping action. The launch of social commerce platforms like Facebook Shop, Instagram Shop and Google’s Shoploop proves the future of retail is digital, as consumers spend more time and money online.
• More retail buyers are now using online retail industry solutions to discover popular and innovative products, and connect with online-ready suppliers.
• Overall, e-commerce has evolved into a retail essential. Consumers now expect safe, reliable and convenient shopping options, especially in a pandemic. In response, more retail companies are investing in e-commerce to deliver more robust, efficient service and earn shoppers’ loyalty. To improve speed-to-market, retail buyers can use digital solutions to efficiently discover in-demand products, delight consumers and gain an edge as the retail industry evolves online.
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