2021 E-commerce Trends to Watch
Transcript of 2021 E-commerce Trends to Watch
2021 E-commerce Trends to WatchConsumer shopping behavior changed because of the pandemic—and many of those changes are here to stay.
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
The widespread embrace of online
shopping during the pandemic
unexpectedly accelerated e-commerce
growth by almost two years.
Expect continued e-commerce growth
53% of North American buyers said
that the pandemic has changed the
way they will shop going forward.
“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.
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.
The future of shopping will be personalized
“50 Stats Showing The Power Of Personalization,” Forbes, February 18, 2020. State of the Connected Customer, Salesforce, 2020
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.
63% of consumers expect companies to understand their unique needs and expectations.
80% of consumers are more likely to make a purchase from a brand that provides personalized experiences.
80%63%
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.
The stay-at-home boom will go on for some
“US forecasting shocks 2020: Ecommerce and overall commerce,” eMarketer, December 27, 2020.
Expect continued growth in specific e-commerce categories as we keep on working, learning, and
playing at home.
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Electronics Furniture Health & Beauty Food & Beverage
Online Spending
Expected Actual
Take Action:
Evaluate your inventory and identify products you could creatively position or promote to your customers as convenience or comfort purchases.
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.
Online retailers will stay focused on getting returns rightMaking returns easier is key to creating a frictionless experience for customers.
in goods were returned by shoppers in
2020—18% of total online retail sales.
said “the return process is a complicated, lengthy hassle.”
79%
More than 3 out of 4 shoppers who highly rated their
returns experience with a retailer that was new to them
said they'd shop with them again.
Half of all shoppers said they would not buy from a retailer
if they had to pay for return shipping.
Of consumers surveyed
about returns:
$102 BILLION
77%
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 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.”
“5 Pandemic Buying Habits That Are Here to Stay—According to Shopify Research,” Shopify Blog, September 10, 2020.
“Click and collect is gaining momentum amid pandemic,” eMarketer, January 10, 2020
Percentage of buyers using curbside pickup:
40% at the onset of the pandemic for safety.
38% plan to continue using it for convenience.
Percentage of Top 500 North American
e-commerce retailers offering curbside pickup:
6.9% in December 2019
Click-and-collect transactions made up
$58.52 billion in sales—15.5% over estimates.
Because an estimated $25 million goods are lost every day from
package theft, consumers are opting for in-store pickup, requesting a
signature upon delivery, and sending packages to delivery centers.
43.7% in August 2020
Curbside pickup and ship-to-store won’t stop
Shoppers have embraced these convenient services and plan to keep using them.
“US forecasting shocks 2020: Ecommerce and overall commerce,” eMarketer, December 27, 2020.
Consumer Returns in the Retail Industry 2020, National Retail Federation, December 2020
Take Action:
Give your customers more peace of mind—make sure they know about FedEx Delivery Manager®. It’s free and they’ll get more visibility and control over when and where their packages get delivered.
Groceries AlcoholEntertainment/
fitnessHome/gardenHome office
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2.2Days
Most consumers who choose freeshipping consider delivery in five days to be “fast”
or “acceptable.” However, consumers’ definition of “fast” depends on the category:
2.2Days
2.6Days
2.8Days
Average of all categories: 2.3 Days
Shoppers will always want to get it fast
Expectations of fast delivery times are highest for
groceries, household supplies, and home office items.
“Reconsidering the need for speed,” Pitney Bowes BOXpoll, October 2020.
Take Action:
Evaluate whether your products are shipping at the expected speed or if a different shipping option might be better. Consider services like FedEx Home Delivery® to get your products to your customers every day of the week. Remember, being transparent about delivery timing works in your favor.
Digital options will keep bringing customers closer
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.
Businesses will continue to use them for customer loyalty and
acquisition.
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.
“5 Pandemic Buying Habits That Are Here to Stay—According to Shopify Research,” Shopify Blog, September 10, 2020.
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.
Shopping small is getting biggerConsumers will continue to shop locally and online with small independent businesses.
61% of buyers said they plan to buy
from local and independent retailers six
months from now—significantly more
than those who reported doing so in
the first three months of the pandemic.
61%
“5 Pandemic Buying Habits That Are Here to Stay—According to Shopify Research,” Shopify Blog, September 10, 2020.
This trend is not only here to stay, it’s actually picking up
steam.
66% said that they learned
about local businesses
through recommendations
from friends or family.
66%
Take Action:
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. You can reach new customers and share the marketing costs.
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.
65% of shoppers want to buy from brands that aim for sustainability.
Consumers are willing to buy more sustainably packaged products—
and pay more for them.
“Sustainability in packaging: Inside the minds of US consumers,” McKinsey & Company, October 21, 2020.
“The Future of eCommerce: eCommerce Trends to Watch for in 2021,” Core DNA, December 21, 2020.
Take Action:
Ask customers to recycle packaging or suggest creative ways to reuse it. Consider sustainable or multi-use packaging, like the Legal Size Reusable FedEx® Envelope or FedEx® Reusable Sturdy Pak. Remember, packing materials are in demand due to the increase in online shopping, so build cost and time considerations into your business plan.
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