At Payoneer’s recent Beyond 24-hour global virtual summit for digital business, we had the privilege of hosting a panel of some of the leading voices in eCommerce to discuss the industry’s growth trajectory during the COVID-19 pandemic and where it’s heading going into 2021.
Nathan Archie, Country Manager for Australia and New Zealand at Payoneer led the discussion, which featured; Talia Lederman, Partnerships & Category Manager at Catch; Huw Griffiths, Head of Commercial/Sales at Klarna; Mark Gray, Senior Manager Cross-Border Trade and Partnerships at TheMarket; and Sophie Metcalfe, Head of the Publisher Team at Commission Factory.
Over the course of the discussion, we heard about a variety of eCommerce related topics, including future industry prospects, affiliate marketing, the concept of buy now, pay later, and holiday forecasts. A recap of the discussion is below.
The State of eCommerce During 2020
Nathan started off by highlighting a glaring statistic – US eCommerce penetration increased 11% in the first four months of 2020, which was more than the 10 years preceding combined. When asked why the industry saw such dramatic growth, the panel was unanimous: While the pandemic has made eCommerce a necessity for consumers in lockdown, the convenience of online shopping is habit forming, and businesses will continue to benefit as long as they can adapt to new trends.
For Talia Lederman at Catch, this means that if retailers “live up to their delivery promises and customer service promises, customers will continue coming back again and again. [Additionally], retailers need to be looking at the content they provide and having a really good online strategy.” This was seconded by Mark Gray from TheMarket, who mentioned that “if people have a good experience, especially first-time online shippers, they’re going to continue to come back. They now have that comfort level and have no reason to not shop online”.
Where is eCommerce Heading in the Next 3-5 Years?
The conversation then shifted to where the industry was heading in the next 3-5 years. Given that the panel was based in Australia and New Zealand, the discussion was mostly focused on that part of the world. Still, everyone was quick to note that their forecasts were global, and that they expect eCommerce to continue growing.
In Australia, for example, the levels of eCommerce penetration that were predicted for the next 3-5 years have already been achieved. To stay ahead of the curve, it’s important for online sellers to adapt to the changing environment. This includes having an omnichannel presence to get in front of as many customers as possible. Huw Griffiths from Klarna also highlighted the importance of new payment methods including buy now, pay later, which allows customers to pay for their purchases over time in installments.
According to Huw, “consumers demand a seamless payment solution that provides financial control and convenience. [Buy now, pay later] elevates the entire shopping experience, and more importantly, the post-purchase experience.”
Will eCommerce Ever Overtake Brick-and-Mortar Stores?
The conversation than shifted to the million-dollar question: Will eCommerce ever overtake shopping in brick-and-mortar stores? Given eCommerce’s growth trajectory this year, one could have safely assumed that it was only a matter of time. It turns out the answer isn’t so simple.
While evolving consumer expectations have made it more difficult for brick-and-mortar stores to keep up with eCommerce, the panel consensus was that in-store shopping isn’t going anywhere soon. In fact, the future will most likely consist of online and brick-and-mortar working together to create a comprehensive user experience.
According to Sophie Metcalfe at Commission Factory, “I don’t think online will ever completely replace in-store. I think the context of what stores are needed for will continue to change…and that stores will have to offer value through a human connection and expertise.”
Affiliate Marketing, Holiday Trends and More!
In addition to the highlights above, this session offered plenty of insights into current and future trends in eCommerce, including affiliate marketing, holiday sales amidst logistics complications and how to effectively manage inventory to maximize your sales. To see the entire session, click below!