E-commerce has undergone many exciting changes over the past few years. The Covid pandemic moved many people’s primary goods and services online, and the trend has yet to reverse itself. In 2022, e-commerce has significant opportunities to grow.
Mike Edwards, an e-commerce expert from Portland, Oregon, has researched current trends and provides his exclusive predictions for the sector in 2022.
IMAGE: PEXELS
Who Shops Online?
Today, most Internet users in the United States have made online purchases. The age cohorts most likely to shop online include millennials and Gen Z shoppers, who prefer going online over shopping in a store. However, all age groups have increased their online shopping habits since 2020.
According to GE Capital Retail Bank, 81 percent of shoppers research online before buying a product, especially large purchases like mattresses and bicycles.
Current Statistics
Currently, the global value of e-commerce is about $4.2 trillion. This is up from $3.5 trillion in 2019. Pandemic-driven trends have continued, and many people who experienced the convenience and ease of Internet shopping have continued to do most of their transactions online.
According to the U.S. Census Bureau, e-commerce as a portion of total retail sales has risen since the first quarter of 2020 and continued to rise as the nation began to reopen after the worst pandemic had passed. In the first quarter of 2021, e-commerce was up by 39.1 percent over the prior year.
Sectors Of E-Commerce Experiencing Growth
Into 2022, several sectors of the e-commerce world are poised to continue with their impressive growth. Apparel and fashion have experienced impressive growth. By 2025, the sector is expected to $1 trillion globally and to grow 9 percent each year.
Beauty and personal care have also been big sellers online. The launch of celebrity brands like Kylie Jenner and Rihanna produced has had an outsized influence on the sector.
Household goods purchases are also up significantly. It wasn’t easy to get certain items like disinfectants and paper products in stores during the pandemic. Shoppers acquired the habit of purchasing these items online, and they continue to do so thanks to the convenience factor and free shipping.
Entertainment will continue to be a vital part of the e-commerce sector into 2022. Sales of books, movies, music, and video games will drive growth. E-books, downloadable music, and streaming movies and TV shows will remain important as customers switch to a digital model rather than an ownership model for their media.
Predictions For 2022
By 2022, the global e-commerce market will reach $5.4 trillion, with $1 trillion in the United States alone. Mike Edwards predicts that continued growth will come from the sectors above that have already shown strong performance and that other sectors will join them in succeeding.
Online grocery shopping has continued to show strong sales figures. Many people ordered groceries online for the first time during the pandemic but have continued this practice even as more people have returned to stores. Delivery and curbside pickup are both extremely popular. Online grocers are experiencing high profits, driving hiring in their stores.
Curbside shopping and the convenience of buying online and in-store products are also poised to continue their major impacts in 2022. An Adobe survey found that up to 30 percent of American shoppers would rather purchase online and pick up at the curbside or in-store than shop conventionally.
Holiday Shopping Trends
During the pandemic and continuing after that, the importance of the holiday shopping season will decrease. Customers are shopping online more of the year, and promotions connected to holidays are losing their luster. Black Friday and its corresponding online sales day, Cyber Monday, will be less important than a continuing surge in online buying that accompanies the entire fourth quarter of 2022.
Sales And Promotions
As consumer prices have steadily risen, leading to inflation fears, the importance of sale prices and deals will continue to make itself felt in 2022. Customers will be brought in by promotions and stay to shop throughout a website.
Understanding The E-Commerce Landscape
As an e-commerce expert, Mike Edwards has an excellent grasp of the sector’s current state and where it is going over the next year. He predicts that if Covid cases continue to surge in certain parts of the country like the Midwest and South, e-commerce numbers may spike in these areas as people again avoid shopping in retail locations.
The e-commerce sector has become a vital part of the American and world economies since its inception in the 1990s. It will only continue to gain influence and show shoppers a more convenient way to get the goods and services they need at a competitive price.
Mike Edwards reminds readers that these predictions could change over the course of the next calendar year and that they should do their research on sales figures and consumer sentiment.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.
COMMENTS