2021 E-commerce Trends to Watch - Consumer shopping behavior changed because of the pandemic-and many of those changes are here to stay - FedEx

Page created by Bobby Morales
 
CONTINUE READING
2021 E-commerce Trends to Watch - Consumer shopping behavior changed because of the pandemic-and many of those changes are here to stay - FedEx
2021 E-commerce
Trends to Watch
Consumer shopping behavior
changed because of the
pandemic—and many of those
changes are here to stay.
2021 E-commerce Trends to Watch - Consumer shopping behavior changed because of the pandemic-and many of those changes are here to stay - FedEx
2021 Trends to Watch
•   E-commerce grows on
•   Personalization game
•   Stay-at-home boom
•   Reimagining returns
•   Pickups are picking up
•   The need for speed
•   Shopping small is big
•   Sustainability matters
2021 E-commerce Trends to Watch - Consumer shopping behavior changed because of the pandemic-and many of those changes are here to stay - FedEx
Expect continued
                e-commerce growth
                 The widespread embrace of online
                 shopping during the pandemic
                 unexpectedly accelerated e-commerce
                 growth by almost two years.

                 53% of North American buyers said
                 that the pandemic has changed the
                 way they will shop going forward.
                                                                                                                    Take Action:

                                                                                                                    Be prepared for a quick increase in online business—
                                                                                                                    revisit your operations from website to fulfillment
                                                                                                                    and consider technology solutions that can help you
                                                                                                                    handle accelerated growth.
“5 Pandemic Buying Habits That Are Here to Stay—According to Shopify Research,” Shopify Blog, September 10, 2020.
“US forecasting shocks 2020: Ecommerce and overall commerce,” eMarketer, December 27, 2020.
2021 E-commerce Trends to Watch - Consumer shopping behavior changed because of the pandemic-and many of those changes are here to stay - FedEx
The future of shopping will be personalized
                More online shopping means more opportunities to collect first-party data which can
               be used to make the entire customer journey more relevant—even after the purchase.

                                                                                                                                                     80%
                                                                                                                   63%

                                                                                               63% of consumers expect              80% of consumers are more likely to
                                                                                             companies to understand their          make a purchase from a brand that
                                                                                             unique needs and expectations.         provides personalized experiences.

                                                                                                      Take Action:

                                                                                                      Personalization is not just for drawing customers in to make a
                                                                                                      purchase, it should apply to their entire experience including
                                                                                                      fulfillment, tracking, unboxing, follow-up, and even returns.

“50 Stats Showing The Power Of Personalization,” Forbes, February 18, 2020.   State of the Connected Customer, Salesforce, 2020
2021 E-commerce Trends to Watch - Consumer shopping behavior changed because of the pandemic-and many of those changes are here to stay - FedEx
The stay-at-home boom
                          will go on for some
          Expect continued growth in specific e-commerce
          categories as we keep on working, learning, and
                         playing at home.

                                           Online Spending
      200
      180
      160
      140
      120
      100
        80
        60
        40                                                                                          Take Action:
        20
                                                                                                    Evaluate your inventory and identify
          0
                                                                                                    products you could creatively position
                   Electronics                Furniture           Health & Beauty Food & Beverage
                                                                                                    or promote to your customers as
                                                 Expected           Actual                          convenience or comfort purchases.

“US forecasting shocks 2020: Ecommerce and overall commerce,” eMarketer, December 27, 2020.
2021 E-commerce Trends to Watch - Consumer shopping behavior changed because of the pandemic-and many of those changes are here to stay - FedEx
Online retailers will stay focused
      $102 BILLION                       on getting returns right
in goods were returned by shoppers in
                                         Making returns easier is key to creating a frictionless experience for customers.
2020—18% of total online retail sales.

                                                         More than 3 out of 4 shoppers who highly rated their
      Of consumers surveyed
                                                         returns experience with a retailer that was new to them
          about returns:
                                                         said they'd shop with them again.

                                                         Half of all shoppers said they would not buy from a retailer
                 79%                                     if they had to pay for return shipping.

     said “the return process is a
    complicated, lengthy hassle.”             Take Action:

                                              Be sure your return policy builds shopper confidence. Make the process
                                              easy by including a return label in your original shipment or take
                 77%                          advantage of tools like FedEx Returns Technology to create a QR code
                                              label for customers who don’t have a printer. Remember, every return is
                                              an opportunity to create a repeat customer.
      said “paying to ship back
       returns is a pain point.”
                                         Consumer Returns in the Retail Industry 2020, National Retail Federation, December 2020
                                         FedEx Empathy Tools, December 10, 2020

                                         “16 Ecommerce Experts’ Predictions on How Online Commerce Will Evolve in 2021,” eSeller Cafe, December 29, 2020.
                                         “Most shoppers plan on making a return after the holidays,” Retail Dive, December 21, 2020.
2021 E-commerce Trends to Watch - Consumer shopping behavior changed because of the pandemic-and many of those changes are here to stay - FedEx
Curbside pickup
 and ship-to-store
 won’t stop
 Shoppers have embraced
 these convenient services and
 plan to keep using them.

 Percentage of buyers using curbside pickup:                                                   Because an estimated $25 million goods are lost every day from
 40% at the onset of the pandemic for safety.                                                  package theft, consumers are opting for in-store pickup, requesting a
 38% plan to continue using it for convenience.                                                signature upon delivery, and sending packages to delivery centers.

 Percentage of Top 500 North American
 e-commerce retailers offering curbside pickup:                                                     Take Action:
 6.9% in December 2019 43.7% in August 2020                                                         Give your customers more peace of mind—make sure they know
                                                                                                    about FedEx Delivery Manager®. It’s free and they’ll get more visibility
 Click-and-collect transactions made up                                                             and control over when and where their packages get delivered.
 $58.52 billion in sales—15.5% over estimates.

“5 Pandemic Buying Habits That Are Here to Stay—According to Shopify Research,” Shopify Blog, September 10, 2020.   “US forecasting shocks 2020: Ecommerce and overall commerce,” eMarketer, December 27, 2020.

“Click and collect is gaining momentum amid pandemic,” eMarketer, January 10, 2020                                  Consumer Returns in the Retail Industry 2020, National Retail Federation, December 2020
2021 E-commerce Trends to Watch - Consumer shopping behavior changed because of the pandemic-and many of those changes are here to stay - FedEx
Take Action:
                    Shoppers will always want                                                                        Evaluate whether your products are shipping
                         to get it fast                                                                              at the expected speed or if a different
                                                                                                                     shipping option might be better. Consider
                                                                                                                     services like FedEx Home Delivery® to get
          Expectations of fast delivery times are highest for                                                        your products to your customers every day
                                                                                                                     of the week. Remember, being transparent
      groceries, household supplies, and home office items.                                                          about delivery timing works in your favor.

                                               Most consumers who choose free shipping consider delivery in five days to be “fast”
                                                  or “acceptable.” However, consumers’ definition of “fast” depends on the category:

                                                                                    Average of all categories: 2.3 Days

                                              1.2                           2.2                   2.2                     2.6             2.8
                                               Days                          Days                  Days                   Days             Days

                                                                                                                 Entertainment/
                                         Groceries                        Alcohol             Home office                            Home/garden
                                                                                                                     fitness

“Reconsidering the need for speed,” Pitney Bowes BOXpoll, October 2020.
2021 E-commerce Trends to Watch - Consumer shopping behavior changed because of the pandemic-and many of those changes are here to stay - FedEx
Digital options
 will keep bringing
 customers closer
Businesses will continue to use
them for customer loyalty and
         acquisition.
  14% of all buyers and 27% of buyers
  aged 18–35 purchased a digital version
  of something that would normally be
  done in person.

  63% of those who purchased digital
  experiences said they did so more
  during the pandemic than at the start
  of the year.
2021 E-commerce Trends to Watch - Consumer shopping behavior changed because of the pandemic-and many of those changes are here to stay - FedEx
Virtual experiences
are here to stay

14% of buyers say they will purchase
virtual experiences in the future—the
same as in 2020.

The appetite for virtual experiences is
likely to continue as many consumers
may not feel comfortable returning to
“business as usual,” even as areas slowly
reopen.                                                                           Take Action:

                                                                                  Think creatively about virtual experiences you
                                                                                  could offer. Anything that resonates with your
                                                                                  customers can help build your brand and every
                                                                                  positive customer interaction boosts loyalty.
“5 Pandemic Buying Habits That Are Here to Stay—According to Shopify Research,”
Shopify Blog, September 10, 2020.
Shopping small is getting bigger
                   Consumers will continue to shop locally and online with small independent businesses.

                  This trend is not only here to stay, it’s actually picking up
                                                                 steam.

                                                                                                                        Take Action:

                                      61%                                                                   66%         Take advantage of the shop small
                                                                                                                        movement by showing your support
                                                                                                                        for small, local businesses in your
                                                                                                                        community. Consider collaborating on
                                                                                                                        promotions and shopping events, too.
             61% of buyers said they plan to buy                                          66% said that they learned
                                                                                                                        You can reach new customers and
          from local and independent retailers six                                            about local businesses    share the marketing costs.
           months from now—significantly more                                             through recommendations
             than those who reported doing so in                                              from friends or family.
          the first three months of the pandemic.

“5 Pandemic Buying Habits That Are Here to Stay—According to Shopify Research,” Shopify Blog, September 10, 2020.
E-commerce is going
Earth-friendly fast.
Sustainable online retailing practices
will become a priority and major
brands have already started.

Over half of U.S. consumers are very concerned about the
environmental impact of packaging.

More online shopping means more cardboard and plastic packaging
waste—and shoppers know it.                                                                              Take Action:

65% of shoppers want to buy from brands that aim for sustainability.                                     Ask customers to recycle packaging or
                                                                                                         suggest creative ways to reuse it. Consider
Consumers are willing to buy more sustainably packaged products—                                         sustainable or multi-use packaging, like the
                                                                                                         Legal Size Reusable FedEx® Envelope or
and pay more for them.                                                                                   FedEx® Reusable Sturdy Pak. Remember,
                                                                                                         packing materials are in demand due to the
                                                                                                         increase in online shopping, so build cost and
“Sustainability in packaging: Inside the minds of US consumers,” McKinsey & Company, October 21, 2020.
                                                                                                         time considerations into your business plan.
“The Future of eCommerce: eCommerce Trends to Watch for in 2021,” Core DNA, December 21, 2020.
Thank You
For more valuable business insights and tech tips, visit fedex.com/small-business.

                                                                                     13
You can also read