How COVID-19 is Impacting Ecommerce in 2021 & Beyond
One year ago, the COVID-19 pandemic rocked the retail industry. Now, we’re taking an in-depth look at the ways in which ecommerce and online shopping habits have been permanently reshaped. Keep reading for a forecast of the ecommerce landscape, plus tactics to help retailers successfully navigate these changes and come out on top.
The Ecommerce Boom Will Continue into 2022
During the 12-month pandemic period of March 2020 to February 2021, consumers spent $844 billion online — a boost of $183 billion compared to the same period the previous year.
Should we expect this surge in ecommerce spending to slow down as coronavirus vaccines roll out to the general public and states begin to loosen their restrictions? Not likely, according to the Adobe Digital Economy Index.
In the first two months of 2021, consumers spent $121 billion online — up 34% year-over-year. Adobe predicts that the 2021 calendar year will bring in between $850 billion and $930 billion total in online spending, and that 2022 will become the first trillion-dollar year for ecommerce.
Industry experts agree that the pandemic has permanently boosted the baseline for ecommerce spending, and that future growth will build from this point. According to recent data from IBM’s U.S. Retail Index, the coronavirus pandemic has accelerated the shift from brick-and-mortar stores to online shopping by five years.
Others are even more optimistic: Harley Finkelstein, Shopify President, believes that the pandemic has sped up the shift to online shopping by ten years. “The commerce world that would have existed in the year 2030 has really been pulled into the year 2020,” Finkelstein explained. Shopify has predicted continued rapid growth in 2021.
“Short-term, the behavior of millions of consumers has changed — but for many, that shift towards online purchasing will be permanent,” said James Clark, Whitecap’s SEO Director. “This will dramatically increase the lifetime value of new ecommerce customers.”
3 Keys to Ecommerce Success in 2021 & Beyond
1. Ecommerce SEO & PPC
According to Shopify, half of all global ecommerce sales occur on marketplaces like Amazon, where “consumers search for solutions rather than brands.” A whopping 70% of Amazon searches do not include a brand name, meaning customers are looking for differentiators other than brand (such as popularity, ratings, price, or availability) to make their click-through and purchase decisions.
In other words, marketplaces have made it much harder for retailers to develop a strong brand image and retain loyal customers. One way brands can remedy this and continue to compete successfully is by investing in ecommerce SEO & PPC. The higher a brand’s products rank on Google, Bing, Amazon and other search engine results pages, the better chance they have of driving traffic and sales among both new and existing customers.
“Right now, it seems like every ecommerce brand that has been dragging their heels in terms of SEO and PPC investment is finally trying to play catch-up,” said Michael Salvo, Chief SEO Strategist and Principal at Whitecap SEO.
“Over the last several months, we have received an influx of sales inquiries and witnessed a significant number of brands upgrading their ecommerce platforms, namely from Magento to Shopify Plus. Brands are doubling down on their long-term investments now that they understand the very high ROI of organic and paid search channels.”
2. Omnichannel Shopping & Fulfillment
During the pandemic, retailers scrambled to accommodate shoppers by allowing them to choose their preferred shopping experience: in-person, buy-online-pickup-in-store (BOPIS, also known as curbside shopping), or standard delivery. Even as pandemic restrictions loosen, many consumers won’t be willing to give up that level of flexibility.
According to Adobe, BOPIS options have continued to gain traction in 2021, with 67% year-over-year growth in February. In a survey of more than 1,000 consumers, 30% said they prefer curbside or in-store pickup compared to standard delivery options.
In order to stay competitive, retailers need to adapt to this consumer demand for omnichannel shopping and fulfillment. This means offering multiple options for shoppers to browse and buy — including mobile and social media — as well as to receive their order. The catch? The user experience needs to be seamless and unified across each channel.
Key goals should include synchronizing inventory and customer data across channels, building a fast and user-friendly mobile shopping experience, and leveraging SEO and PPC (including local search) to drive customers to various fulfillment offerings.
3. Strong Customer Experience
In 2021, ecommerce players are doing whatever it takes to retain their increased sales volumes. From promotions to loyalty programs and new product offerings to free shipping, these tactics have intensified the competitiveness of the ecommerce landscape. Improving the customer experience is essential to competing successfully in 2021 and beyond.
There is a lot that goes into building a great customer experience, but the online storefront is a good place to start. Retailers should invest heavily in understanding the path to purchase of target users, and in creating a human-centered, high-converting design. Responsive designs are critical to providing a consistent experience across platforms, and are important for SEO.
Seemingly minor details such as how out-of-stock products are displayed and the quantity of content on product and category pages can have an impact on both organic search rankings and user experience. Other factors to consider include pressure testing ecommerce sites for increased traffic flow, upgrading the checkout experience, and offering features such as free or expedited delivery.
Get Started with Ecommerce SEO & PPC
Need help ramping up your search marketing strategy to take advantage of this surge in ecommerce spending? Contact our team of ecommerce SEO & PPC experts today to learn more and get started.