5 ways brands can benefit from the COVID e-commerce boom

Loren Padelford of Shopify may describe it best. “It was a time machine that brought 2030 to 2020 for e-commerce retailers and brand builders,” says the company’s VP and general manager. That is an apt description of the past year’s effect on e-commerce. Global e-commerce sales accounted for 17% of total retail sales in 2020, according to GroupM—which predicts e-commerce will account for 25% of retail sales by 2024.“It was a case of accelerating the inevitable,” says Reid Greenberg, exec VP-digital and omnicommerce at Kantar. Greenberg, Padelford and other experts point to five things we’ve learned about consumers during the past year’s e-commerce explosion—five things that can color how brands and retailers approach e-commerce post-pandemic: They’ve tried it—and they like it: “The consumer now understands the notion of e-commerce convenience, the opportunity to drive to the retailer of their choice and have something waiting—or the immediacy of placing an order and having it show up that afternoon,” Greenberg says. “It’s something consumers want and will continue to cherish.” Or as Steve Wallet, VP-category development, shopper marketing and e-commerce for Diageo, puts it: “E-commerce fills a lot of the needs consumers are looking for today: convenience, discovery, inspiration and the most recent thing is safety. What makes it appealing is not just the fact you can get it online, but the way you can shop for it.” They’re going to keep buying online: Facebook estimates about 145 million new people have entered the e-commerce world for the first time during the pandemic. “Our partners initially were concerned about who these new customers were. They were less comfortable with the lifetime value, wondering were they as valuable or sticky as shoppers pre-pandemic,” says Simon Whitcombe, Facebook VP-global marketing. “But we’re hearing these customers are as valuable, and in some cases more valuable, and are coming back on a regular basis. So yes, we think this is a lasting impact.” That includes everyone, boomers too: “Pre-pandemic, the older demographic never indexed on usage of last-mile delivery options and e-commerce. But they were forced to do it, and our research shows many of them say they’ll never go back,” Greenberg says. They’ll choose from different ways to shop: Online alcoholic beverage marketplace Drizly says its research shows “One individual human being is actually several different types of shopper,” says Scott Braun, Drizly CMO. “There’s the shopping trip where you know what you want, painless, make a purchase in 30 seconds. Another time, you might know the category you want, but look for something new—you’re ready for experimentation. The third type might be when you’re heading to a dinner party and don’t know what to bring.” Post-pandemic, consumers won’t simply choose to shop exclusively online or in person—and the retail experience, whether online or in store, will need to evolve to serve these diverse customer needs and expectations. Where they shop means more than it used to: After a year of concern for Black Lives Matter, worker safety, climate change and corporate values, people are more than ever putting their money where their hearts are. Facebook/Kantar 2020 research found 56% of consumers globally said it’s very important that the brands they buy from support the values they believe in. “There is a definite shift: Consumers are looking for brands in sync with their values,” says Karuna Rawal, CMO for plant-based protein brand Nature’s Fynd—who adds that often favors new brands without a history, those being built from the ground up. Shopper interest extends to the online transaction and checkout; Shopify’s consumer research says 42% of consumers prefer green options for packaging and delivery, and 44% want the ability to donate to a cause with their purchase.

5 ways brands can benefit from the COVID e-commerce boom

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