The New Normal For E-Commerce Businesses In 2021

It was often predicted that e-commerce would overtake brick-and-mortar business over time, but no one could have predicted that the changes we expected to see over years could take place in just months. The pandemic caused such a shift in consumer behavior, out of pure necessity, that we did see drastic changes in record times. In fact, at the height of the pandemic, ten years of e-commerce growth happened in just 90 days, according to a McKinsey study. 

75% of American consumers have tried different stores, websites, or brands during the pandemic. And 60% of these consumers expect to integrate the new brands and stores in their post-COVID-19 lives.

From shoppers who rarely shopped online heading straight for their computers and credit cards, to goods that were rarely purchased online becoming sold out at every online retailer, and businesses rapidly trying to keep up with the demand, not only in terms of inventory on-hand but also in their technological abilities – the changes were fast and furious. 

Brands Shifting Their Focus 

Quarantines, store closures, and the simple fear of venturing outside resulted in a major shift in consumer behavior, which in turn forced companies to have to reassess how they conduct business.

“With the influx of brands into the online space came an influx of unearned traffic. People were forced to shop online regardless of the experience because they didn’t have options, this created two modes, one of variable traffic, where once the option to go back to store was on the table, people left. And two, more data. More than ever, brands have access to consumer behavioral and psychographic data from which to glean consumer insights,” says Katharine McKee, Founder of Morphology Consulting, a digital commerce consultancy.

“Brands who had not previously paid close attention to online behavior – because in-store was so successful for them – suddenly have a host of behavioral patterns and stated customer wants. The big post-pandemic shift should be parsing that data and using it to create products or services that customers are actively seeking, and pivot existing ones into a new revenue stream. The best way to do that? Improve your website. Make sure you are ranking for quality and relevancy, and make sure that the site UX is easy to navigate. Layer in what new data is telling you, but also spend on the process that will improve your margins. A better site will lower your acquisition costs, make high value clients more likely to come to you, make your media less expensive, and will take advantage of that new online traffic,” McKee adds. 

To capitalize on this e-commerce growth, brands need to optimize commerce across all channels such as social media, retail, wholesale, and online marketplaces. 

“This is not just a pandemic disruption. This is an evolution of brand and online purchasing, which is why we’re going back to an omnichannel strategy,” said Nisha Dua Co-founder and General Partner, BBG Ventures. 

Provide Virtual Experiences To Replicate Physical Experiences 

With everyone living in a socially-distanced world for over a year now, the desire for human connection is only growing. Brands that can successfully offer engaging virtual experiences that replicate physical experiences can really win with consumers. 

14% of buyers purchased a digital version of an experience that would normally be done in person. And that figure jumps to 27% among the 18 to 35-year-old demographic.

The key to successful virtual events is personalization. The more connected attendees feel, the more likely they are to join another event in the future and further engage with the company. The events cannot feel like yet another work zoom call, they need to be unique and engaging in the same way in-person events used to be. This is where augmented reality and virtual shops can play a major role – simply by making events more interactive and different.

No matter which path companies choose to take to weather through the pandemic, keeping consumers top of mind and engaging with them in new creative ways will always pay off.