The eCommerce industry is blossoming at the moment, not in small part due to the effects of the pandemic. There has been a steady increase in online shopping during the COVID pandemic. According to Digital Commerce 360, there has been a 42% year over year eCommerce sales growth in August, which was increased even further to 43% in September, reaching a total of $60.4 billion.
With the holiday season looming over the horizon and the tightening of the quarantine which led to the closure of many stores, online sales are predicted to grow even further in the fourth quarter of 2020. Indeed, more than 50% of retailers that were surveyed by Digital Commerce 360 expect to see an increase in sales by 24% or more.
Under the current circumstances, it would appear that eCommerce is the real winner of 2020. In fact, TechCrunch reports that the increase in online shopping during the COVID-19 pandemic has accelerated the shift to eCommerce by as much as five years. While physical stores are expected to decline by nearly 60% in 2020, eCommerce can grow by almost 20%.
This shift to eCommerce has also lead to a significant increase in demand for eCommerce and shopping apps. This was confirmed by the Appsflyer study which found that the demand for eCommerce apps during Q2 of 2020 has exceeded even that of the demand during the holiday season of Q4 of 2019.
More and more businesses realize how important the convenience of an app is, and are prepared to spend more to attract and entice customers to use them. The same study found that only in North America, companies spent over $3.5 billion on app install ads during the first half of 2020.
Numbers like this cause many to have a positive outlook on the state of the economy. Indeed, recent research by McKinsey has found that many executives currently have the most optimistic views on the future of the economy since the beginning of the pandemic, with 57% predicting significant improvements during the next six months. Furthermore, over half of the executives that were interviewed (53%) expect to see an increase in demand for their products and, as a result, an increase in profits within six months.
Even though the current rate of eCommerce growth is quite impressive, it is not that surprising. Eurostat found that eCommerce has been growing across all countries in the EU before the pandemic as well. Their survey analyzed online shopping statistics of 2019, and the findings are quite remarkable:
- 60% of the EU population aged 16 to 74 shopped online in 2019. This number has increased by 4% since the previous year (56%) and almost doubled over 10 years since 2009.
- Men shop more while more women begin to shop. The share of men that shop online (61%) is a bit higher than that of women (59%). However, the data also shows a greater increase in online shopping among women over the last 10 years. It increased by 30% among women and 26% among men.
- Nordic countries have the highest percentage of online consumers. When looking at the top 5 countries of the EU in terms of online shopping, 3 of them are countries from the Nordic region: UK (87%), Denmark (84%), Sweden (82%), Norway (82%), Netherlands (81%). Estonia, on the other hand, has seen the biggest increase in online shopping over the last 10 years: from 17% in 2009 to an impressive 68% in 2019.
We at Forbytes are able to see the effects of the development of eCommerce firsthand thanks to the partnerships that we share with our clients, who experienced steady growth in sales and revenue even prior to the pandemic.
If you require assistance or seek advice about eCommerce development – feel free to contact us, our eCommerce experts are always happy to lend a hand!