While people across the globe have been making crafts, reading good books or watching new movies, they have also been spending money online like never before. eCommerce is experiencing a boom in online sales due to the disruptions of the coronavirus. Since brick and mortar stores were closed for nearly two months due to the pandemic, this forced consumers to turn to online shopping. Everything from groceries to home workout equipment is being bought online and delivered right to the door of the consumer.
Our digital agency has been closely monitoring trends among our eCom clients and our own in-house brand, DermWarehouse.
We’ve also been staying abreast to overall trends in the eCom space and external data from some of the most well-known eCommerce brands. [Note: Continue reading to see Com trends in China vs. U.S.]
Why March 13th as the Reference Point?
Why are we using March 13th as a reference point for what we are calling, “Post COVID?” This was when many people started to take the pandemic seriously and stopped doing their normal day-to-day activities. This included going into the office for work, going out to dinner, meeting friends at the mall, heading to the movies, etc. After March 13th, consumer behavior changed like never before with a major shift to online shopping.
When more people were confined to their home, this naturally led to an uptick in eCommerce. Online ordering became the only option as stores shut their doors indefinitely. Families opted for home delivery with their groceries, athletes found ways to bring the gym and workout equipment into their own house, and millions of people found ways to get everything they needed without ever stepping foot outside their doors. This is why it’s so fascinating to compare trends in the ecommerce space before and after March 13th, 2020.
10 Eye Opening eCommerce Statistics Since March 13, 2020:
- New stores created on Shopify grew 62% Between March 13th and April 24th [Source]. Many people have definitely noticed the new trend in consumer behavior and are looking to capitalize on it. It’s no wonder so many of these new online stores are beginning to pop up and are seeing success.
- eCommerce revenue as a whole is up 37% and orders up 54% [Source]. Many retailers who may have traditionally operated from physical stores are now relying on eCommerce to potentially offset the losses they took due to closure.
- DermWarehouse, The Media Captain’s in-house beauty and skincare brand, experienced the following uptick (Date Range: March 13th – May 8th versus Jan 16 – March 12th)
- eCom Conversion Rate/+89%
- Target’s eCommerce sales are up 275% [Source]. Unsurprisingly, food and beverage as well as other essentials were reported as the biggest sellers, rising 20%.
- Wayfair saw a 90% jump in April ‘20 vs. April ‘19 sales [Source]. Many consumers turned to Wayfair to order home office furniture, a variety of kitchen appliances and cookware products.
- Amazon makes $10,000 per second as shoppers shelter in place and turn to eCommerce [Source]
- eCommerce is now at 30% of all retail [Source]
- Estee Lauder saw a double digit growth in online sales [Source]. Skincare in particular saw impressive numbers, as well as other products that consumers found important to their health and wellness while in lockdown.
- Wal-Mart’s eCommerce grocery store business doubled [Source]. Items like hand sanitizer, cold and flu medicine as well as alcohol all flew from the virtual shelves of the retailer’s eCommerce site. Consumers also found it easier, safer and more convenient to place orders online for pick-up or delivery as opposed to heading into the physical store.
- For Shopify, Gross merchandise volume from merchant customers jumped 46% to 17.4 billion [Source]
eCommerce Trend in the U.S. – Looking at China
In 2019, China had by far the largest eCommerce market in the world, more than three times the size of the US eCommerce market [source]. Online retail sales in 2019 in China were close to 30% whereas in the United States it was closer to 15%.
If you look at Web Smith’s tweet [view here] and view the chart below, you can see that online spending in April 2020 approached nearly 30% of all retail sales in the U.S., a similar pace to where China was at in 2019.
The fact that COVID-19 doubled the eCommerce spending in the U.S. in the matter of months is extraordinary. Stores like GameStop experience a 519% in online sales after stores were forced to shutdown.
The death of brick-and-mortar is not a foregone conclusion though. Once stores opened up in May 2020, consumers freed from the coronavirus-induced lockdowns began shopping again. U.S. May retail sales surge 17.7% in the biggest monthly jump ever.
It’s evident that online sales will far surpass the overall percentage of retail sales in 2020 versus 2019. It’s feasible that 30% becomes the new norm for eCommerce spending compared overall retail spend. Grandparents and parents that were forced to shop online during COVD-19 are now more confident in making purchases.
COVID-19 has impacted the routines of so many people. eCommerce purchasing is at the forefront of habits changed.