At the beginning of the pandemic when people found themselves confined to their homes and unable to physically visit establishments, the interest for ecommerce grew substantially. It was the logical alternative to shopping as physical locations were closed. Global ecommerce surged in those early days.
In 2021, global online retail sales amounted to almost five trillion U.S. dollars, a figure expected to exceed seven trillion U.S. dollars by 2025.
Recently with people returning to stores, the question is: Is ecommerce still growing? What can we expect for ecommerce moving forward?
What Experts are Saying
The good news is, ecommerce is expected to continue to grow. COVID-19 had not only created an almost immediate need for companies to get into ecommerce, but it has established it as an expectation for many consumers. It's a behavioural shift in consumers and as shopping online continues to grow, companies will continue to see the benefits. Although, success in ecommerce it not simply placing your products online, customers are now expecting more personalization in their buying experience.
Social Media's Impact
It's obvious at this point that social media influences consumer behavior, and studies are showing that social media has a significant impact on purchasing decisions as well.
Global revenues from social commerce are expected to reach $604.5 billion by 2027.
As mentioned, personalization is an expectation and this is where social media delivers as it can be tailored; it is a more authentic way to target consumers.
Various social media platforms are also driving the growth of e-commerce, with growing and emerging platforms which is allowing consumers to purchase goods directly through their Instagram feeds, Tik Tok reels, and more.
All business types can benefit from being in the ecommerce space. Some business types excel and are seeing continued growth and others are making big strides in the ecommerce space.
When looking at what industries are thriving, it's important to look at the current market and what issues we are facing as consumers - a pandemic, rising inflation, and supply chain challenges are some of the most important issues that affect how a consumer buys as well as what they buy.
Electronics and Office Furniture
According to a recent report, electronics continue to be a top product in ecommerce. The work from home trend that has continued over the past two years continues, and the demand for work related electronics and devices, along with online education has contributed to the continued success.
Along with electronics, health and wellbeing play a part in the work from home life and with that, office furniture has been a strong product vertical for ecommerce. Ergonomic considerations for people working from home are a priority for consumers.
Fashion and Apparel
Social Media continues to be a major factor is influencing buying decisions and the advantage of social media is that marketers can directly reach their intended target. And with travel becoming more accessible, and social, in-person events becoming more the norm, clothes and footwear continue to be strong. The growth will continue for fashion and apparel.
Health and Wellness
With more people being at home and making their home their place of work as well, the interest in staying healthy remains a top priority as they adapt to maintain a pre-pandemic fitness regime. In addition, consumers are increasingly taking their health into consideration as their work day and their leisure time are being contained in and around the home, limiting time away for gyms and outdoor activities. Although, relaxed restrictions have allowed this to resume, many people still work from and have adapted to a daily routine at home.
Along with the aforementioned three above, other industries remain strong including auto parts (see our post on this vertical), food and beverage, and hobbies and toys.
Able Sense has worked with numerous businesses relating to all of these verticals and we continue to do so. We have some exciting projects we are working on that showcase innovative businesses both making the leap into ecommerce, as well as others migrating from other platforms to Shopify Plus and we're looking forward to sharing those with you.
Able Sense is an award-winning design and development agency and a Shopify Plus Services Partner. We work with select clients who value our focus on research, strategy, and content, as well as our dedication to user experience.
Our in-house team works on projects that begin with an extensive Ecommerce Action Plan, to implementation and launch, to helping you manage the growth and optimization of your new ecommerce site.
Able Sense is an innovative ecommerce studio specializing in Shopify Plus strategies and custom implementations for businesses around the globe.