The global e-commerce industry is immense, so keeping up with everything that’s going on, as well as keeping up with all the things required for running your online business, is probably impossible.
That’s why we thought we’d try to tick off at least one item from your list and provide you with a monthly news roundup of what’s been happening in the e-commerce world, in case you missed it.
Introducing our news roundup video series, Markets & Marketplaces – your five-minute snapshot of global e-commerce news.
Watch our first episode and join your host, Ari Kohn, to get up to speed with what happened over the 2020 holiday season, where could be the next hottest market to sell in and what today’s e-commerce trends are shaping up to be.
2020’s Holiday Season Spending
The latest data out of the US shows that it was indeed a very merry Christmas for online retailers and the surge in online shopping over the holidays season is unlikely to be slowing down anytime soon. According to a recent report from Mastercard Spending Pulse, annual e-commerce sales shot up by over 47% from November 1st to December 24th, 2020. Analysts point to two factors that explain this, on top of the corona lockdowns that were keeping millions at home, and online.
First, expanded delivery efforts by leading marketplaces, including Amazon and Walmart, helped bring in last-minute shoppers, highlighting the importance of fast, low cost shipping.
Second, the increased popularity of click-and-collect, which allows customers to shop online and collect their purchases without waiting for delivery, points to the need for retailors to diversify the buying experience and how they interact with their customers.
E-Commerce Growth in Southeast Asia
E-commerce markets throughout Southeast Asia have shot up in recent years according to a recent report from financial firm, PPRO.
What’s more, eCommerce in the region is expected to grow by 5.5% in 2021.
In Singapore, the value of online transactions increased by 51% in 2020, a trend which is likely to continue as the government looks to expand the availability of cashless payment methods.
Additionally, 55% of Indonesian consumers say they’re shopping online more than ever before. Analysts are forecasting that the country could soon eclipse other countries in the region in terms of eCommerce market growth.
Finally, Malaysia has become one of the top-5 leading e-commerce markets in the region, with the increased adoption of e-wallets, even for small purchases, signaling the increased potential for the country.
Expected E-Commerce Market Trends for 2021
With the eCommerce train showing no signs of slowing down, we take a look at what some analysts expect to dominate the market in 2021.
First up is social shopping. Social Shopping grew dramatically in 2020 amidst new feature roll outs from Instagram and Facebook and is poised to see further gains this year. Online sellers will want to watch out as other platforms, including YouTube’s shoppable video ads, further increase the ways consumers shop.
Omnichannel shopping is another ongoing trend you’ll want to incorporate into your business strategy. Consumers are far more likely to shop across multiple channels, including on social media, in-store, your personal website and on marketplaces, meaning it’s time to get your name out there.
And finally, it looks like a large segment of the consumer population is turning green. Environmentalism is becoming more and more important for shoppers, with 87% of American consumers saying they would buy a product with a social and environmental benefit if given the option.
This makes it imperative to incorporate some aspect of sustainability into your business. Revisiting what you use for packaging is a good start.