Consumers around the world spend $ 900 billion on online retailers in 2020 compared to the previous two-year trends, according to a report published Tuesday by the Mastercard Institute of Economics.
Shoppers headed back to the restaurant and returned to the store to buy their own clothes and shoes. However, they will still keep their fridge and hunt for good deals online, a sticky habit that developed during the epidemic, according to reports.
Almost all retailers̵7; online sales skyrocketed as shoppers stuck at their homes. As consumers shop online in the parking lot and receive parcels or takeout at their doorstep, e-commerce stores earn about $ 1 from every $ 5 spent on retail worldwide. The report was an increase from about $ 1 from every $ 7 spent in 2019.
In an interview on CNBC’s Worldwide Exchange with Mastercard Chief Economist Frank Holland, Bricklin Dwyer said about 20% to 30% of the $ 900 billion in additional digital spending will continue in 2021 and beyond. How many years next
However, the long-term rise of ecommerce will be inconsistent, and it depends on what retailers sell, how they adapt their business model, and how consumers like to shop. For certain items, such as clothing, shoppers may want to return to a brick-and-mortar store where they can try on a set before buying. In some retail categories, such as electronics, online shopping drives more overall sales share, so there is less room for growth.
Grocery and discount stores, according to reports, are seeing the most dramatic and longest shift for e-commerce. Discount stores include dollar stores, wholesale clubs, and other retailers that sell to customers at close to wholesale prices. The report said groceries would retain about 70% to 80% of the digital sales revenue they saw during peak outbreaks, and discount stores would maintain about 40% to 50%.
For both sectors, online sales accounted for a single share of overall sales before the epidemic, creating more noticeable growth opportunities.
Clothing stores, restaurants and sports / toy stores were the biggest start during an epidemic. But they only account for 10% to 20% of sales, according to the report.
Consumer electronics and department stores surpassed the highest online sales before the outbreak, with e-commerce accounting for 55% to 60% and 40% to 50% of total sales respectively, according to Mastercard for both sectors. Their expectation will be around 20% to 30% of their maximum jump.
Dwyer said grocery stores face unique hurdles, although many consumers shop online for produce, meats and other ingredients, he said, with only 10 percent of overall grocery spending.
“You have to trust other people to pick your peaches,” he said. “You have to trust people to deliver your products and still keep them good when they arrive. That’s some of the obstacles we’re crossing.”