UK Marketing E-Commerce Trends in 2021

Like many businesses, you probably kept an eye on e-commerce trends through 2019 and were excited about the prospects for your business…and then the global pandemic arrived. Now, over 18 months from the early days of the pandemic, some businesses have fallen behind the times. While some capitalized on the trends during the pandemic, others went into survival mode.

As we continue to grow accustomed to the post-pandemic world, it’s important to pay attention to UK e-commerce trends again. What has changed since 2019? What factors remain the same? How did the pandemic affect the steady growth that the e-commerce industry was enjoying before 2020? Let’s find out!

Increased Sales

To answer that last question first, the pandemic took the steady growth and multiplied it exponentially. If you were worried about the speed at which the world was turning to online shopping, fear no more because the world has changed almost overnight.

According to some reports, it took just 90 days in 2020 to achieve ten years’ worth of growth. Suddenly, the world was forced to stay at home. Businesses closed, workers were at home, and our freedom of movement was restricted. Before the pandemic, we’ve always had options as shoppers. Online shopping was an option, but we could also head into a physical store. When the first stay-at-home orders were revealed, online shopping was the ONLY option.

Even though food shops remained open, a significant number of people didn’t want to risk being close to other people in public for fear of contracting the virus. Therefore, consumers shopped online for food, entertainment (such as games and puzzles), clothes, home gym equipment, technology (to accommodate working from home), home office furniture, and more.

As the UK continues to recover from the pandemic, it’s proving incredibly difficult for physical stores to undo the habits built during the pandemic. One report suggests that 50% of all people who started shopping for food online during lockdowns will continue to get it delivered. Businesses have realized that you can change COVID rules, but you can’t force people back into physical shops.

While some consumers love the convenience of shopping from home, others still aren’t comfortable visiting brick-and-mortar shops. Remember the frustration before 2020 where consumers weren’t taking to online shopping as quickly as first thought? Well, the tables have turned.

The growth of e-commerce in the UK has slowed in 2021, but the damage has been done (or so to speak). We’re now in unprecedented times when it comes to e-commerce and the number of people shopping online is higher than ever before.

More Competition

With more people shopping online, it’s perhaps not surprising that brands are experiencing intense competition too. Previously, Gen Z and Millennials accounted for a significant portion of online shopping. Now, even older generations are comfortable with modern technology (despite the odd awkward moment on FaceTime — we’ve all had one with elderly relatives during the pandemic!).

Many new online stores have flooded the market; not just new brands, but older brands that have never had an online presence before. In fact, these older brands have never needed an online presence…until now.

Another factor that has increased competition across many industries is the willingness of consumers to shop around. Previously, consumers had their favorite brands and would need persuading before switching. According to a McKinsey study in the United States, around three in every four consumers in 2020 tried a new shopping behavior; this includes trying a new brand. What’s more, three-quarters of those who have tried new brands want to continue testing new companies.

With this, younger brands and new names don’t face the barriers to entry they once did (both physically and digitally). With one search online, you’ll find success stories of people who started a business with nothing but a laptop and a dream in 2020. Thanks to these changing consumer habits, they’re now thriving and competing against much older brands.

Online Priority

Even as shops reopen their doors, many businesses have recognized the benefits of online stores. Therefore, they will continue to focus on their online profiles in 2021 and beyond. They recognize that people still spend lots of time on their devices (another byproduct of the pandemic) and need to boost their presence as much as possible.

In the UK, just under 28% of all sales came from e-commerce platforms. Though the rate of growth will slow in the coming years, the percentage is still expected to reach 32% by 2024. After seeing statistics like this, what responsible business would ignore the online world?

Consumer Experience

With consumers so happy to switch allegiances, it has become clear that the customer experience is critical. If consumers don’t have a positive experience, they’ll not only avoid a company in the future but also warn others of their problems. In recent years, a trend has developed of people commenting about companies on social media rather than addressing problems with the company directly. Consequently, you need to do everything you can to boost the consumer experience.

In 2021, it goes beyond a high-quality product or service. If your product uses too much plastic in the packaging, you’ll steer customers away. You need to think about the following to keep customers happy:

• Environmental responsibility (packaging, delivery, and product itself)
• Price
• Customer support
• Social media channels
• Delivery tracking

If you don’t know where to start, perform some market research and learn the most important aspects for your consumers. What do they care about the most? The more you learn, the easier you’ll meet these needs (and get ahead of the competition) moving forward. While consumers are willing to try other brands, you can still do everything you can to keep them happy and give them no reason to explore other options.

Rising Ad Costs

Finally, more companies are heading onto the online sphere and wanting to advertise. Thanks to the classic supply/demand model, we know that this increases prices. With more companies vying for each ad placement, businesses are having to pay more to appear for their audiences.

According to many sources, cross-border competition is also increasing thus causing more problems for e-commerce businesses (some say cross-border sales between the UK and US have increased by over 20%). Not only are businesses having to compete against other UK companies, but they’re also having to keep an eye on international competition.

Shoppers can buy from any brand in the world, and these brands are therefore advertising to UK consumers on social media and other platforms. As those who advertise on Facebook will know, the cost of advertising on the platform is higher than it has been for some time. Cost per click increases, ROI reduces, and the marketing strategy suffers.

In November 2020 alone, Facebook cost-per-click advertisements increased by nearly 60% in price. As the months continue, the price of ads fluctuates thus creating an unpredictable environment for businesses.

Top Tips for Businesses

As an e-commerce brand, how do you deal with these current trends? Here are some of the top tips!

Use Data

By far, the best way to target your audience and be present in the right locations is by paying attention to all data entering the business. Create a buyer persona, review ad performance across multiple platforms, and listen to what customers want from your brand. As we’ve seen, they will only choose another service if you fail to meet their needs.

Expand Your Online Presence

Next, don’t be afraid to expand your online presence. This year, a website alone isn’t enough. Towards the end of 2020, experts predicted that social media influenced over 70% of all buying decisions. Just one social media platform can boost your exposure and increase the likelihood of consumers finding your brand.

Simultaneously, we would never encourage a brand to be active on a social media platform for the sake of it. Research your audience and choose platforms that you know the audience enjoys.

Focus on Mobile

Many years ago, e-commerce brands were told to optimize their websites for mobile devices. Now, it’s time you go one step further and accommodate mobile buyers. Mobile devices were critical for e-commerce businesses before the pandemic, and this has only grown with workers spending more time at home. They want to shop the market from the comfort of their own sofa and place orders without leaving social media apps.

With this in mind, accommodate your audience with e-commerce stores on Facebook and Instagram. Also, simplify the checkout process and remove kinks from the process.

Conclusion

Restrictions are easing and lockdowns look like a thing of the past, but the habits built during this time will last. This means more consumers shopping online, increased competition, importance on the customer experience, and seeing online as a priority. Good luck this year!