2021 eCommerce Marketing Trends

Even before covid-19, eCommerce with Amazon as its poster child was changing how the world shops. Covid-19 has though dramatically accelerated the trend and has made it imperative that for most businesses to survive and prosper going forward it is necessary to implement a strong digital eCommerce strategy.

 For example, during the Pandemic with bars, restaurants and tasting rooms shuttered, wine retailers experienced a huge surge in online sales. In fact, most have experienced triple digit increases in their direct-to-consumer (DTC) sales. It is not uncommon to hear of 200-300% increases in DTC sales. This has helped offset a huge decrease in sales to restaurants and other channels negatively affected by Covid-19.

 In 2020, adoption of digital commerce accelerated by multiple years in the space of only a few months. Social commerce, evolution of omni-channel commerce, in-store transformation, and headless services are e-commerce trends that are now shaping the 2021 innovation roadmap.

 To say this year has been different would be a huge understatement. Storefronts went digital, kitchen tables turned into conference rooms, and how we live, work, and shop have been generally turned upside down.

 Prior to 2020, customers were well on their way to becoming more digitally dependent in their interactions with brands. From Amazon to DoorDash, more and more customers grew accustomed to having their wishes granted at the push of a button. In a socially distanced environment, those same customers -- and many new converts -- have come to view digital engagement as not only a convenience, but a necessity. Brands, in turn, have had to accelerate their digital transformations. "Online interactions grew from 42% of customer engagements in 2019 to 60% in 2020."

In the U.S. e-commerce grew 32% in 2020 to reach $790 billion, up from $598 billion the year before. According to the Department of Commerce, e-commerce represented 14% of total retail spending, a significant increase from 11.3% in 2019.

For the past ten years, e-commerce in the U.S. grew, on average, 15% year-over-year. In 2020, the market reached a total sales figure it would have otherwise gotten to in 2021. Thus, two years of e-commerce growth in one year.

U.S. e-commerce reached its peak in the second quarter with a 16.1% share of retail. However, one part of e-commerce penetration growth was increased sales online, another - decreased overall retail spending (the denominator in the penetration calculation). By the end of the year, retail spending had recovered, and thus e-commerce as a percent of retail decreased.

The Department of Commerce’s retail figures also include sales of cars, car parts, bars, and restaurants. Excluding those, the e-commerce share of retail would be substantially higher at around 20% for 2020.

According to McKinsey, over 75% of U.S. consumers have changed shopping behavior and changed to new brands during the pandemic. The top three reasons for shopping for a new brand were value, availability and convenience.

Salesforce analyzed over 1 billion digital commerce data points during the 2020 holiday season with incredibly accurate prediction. For the Nov-Dec period, global digital revenue increased 50% YOY.

Brands are now leveraging their investment in social platforms by pushing the checkout closer to the edges of social media experiences. Over the past 5 years we have seen growing investment in social channels as advertising vehicles. In 2021, brands will take it a step further, adopting commerce capabilities provided by the social platforms. Also anticipate expanding relationships with brands and social influencers as an accelerant to grow sales. This shift will challenge brands to re-think the traditional definitions of "omni-channel", to include the ability to identify customers, at any location, and the ability to deliver and service their need. The evolution of omni-channel orchestration will be a frictionless framework, where companies can deliver value at the speed of need. The evolution of social commerce will include the merger of entertainment with education. Video live-stream shopping is facilitating interaction between the brand and shoppers, serving as another e-commerce growth driver. 

Prior to 2020, video was already one of the key elements of successful eCommerce marketers. That trend was magnified during the Pandemic as people spent more time watching video content than ever before.

If you are interested to create more professional video content that you can use for your eCommerce marketing, feel free to contact us and we can provide for free an overall eCommerce video content marketing strategy .

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