In 2020, eCommerce exploded with 10 years of growth in a 3-month period. Lockdowns and retail closures moved consumers online, necessitating new ways of researching, shopping, transacting, fulfilling, and more. We were forced to rethink shopping and, as such, we have put pressure on the brands we love to create richer experiences for us online.
A number of seismic shifts in consumer behaviours drove a new normal in commerce in 2020. In dentsu’s most recent CMO Survey, CMOs from around the globe cited that their number one challenge going forward will be determining which of these behavioural shifts we’re seeing in the market are temporary versus permanent. What I find incredibly fascinating is not only that behaviour is changing but that fact that it’s happening en masse across geography, demographics and psychographics!
In their report, The Future of eCommerce, our friends at Shopify identified these 5 key eCommerce trends for 2021 and beyond:
1. eCommerce boom fuels record online competition
- Ex. Cross-border commerce spiked 21% YoY in 2020 (Jan-Jun)
2. New consumer behaviours reshape future of retail
- Ex. In the U.S. livestream shopping is expected to generate $25 billion by 2023
3. Fulfillment emerges as a competitive differentiator
- Ex. 64% of consumers expect free shipping on their orders
4. Brand building challenged by marketplace dominance
- Ex. Nearly $2 trillion are spent annually on the top 100 marketplaces
5. Retention becomes a top priority as acquisition costs spike
- Ex. 75% of DTC businesses will offer subscriptions by 2023
What such a monumental behavioural shift has taught us is that brands need to evolve the way they enable transactions in order to stay competitive. Planning for the future involves a balance of understanding how behaviours evolve over time.
As certified Shopify Plus partners, dentsu believes eCommerce is about more than just transactions – especially in today’s environment. Our partnership with Shopify is about bringing to life the best way for your brand to understand your consumer’s needs and meet them in fast, flexible and immersive ways. It’s time we start putting the joy back in shopping, even if we can’t go to the store!
Maybe you don’t know where to start or you’re far along the pathway and need to leapfrog to the next stage (or maybe you just want to chat about cool stuff), if any of these apply, please reach out.