Consumer Industry Reports: Ecommerce Trends for 2021

The ecommerce industry experienced a massive increase in sales and profitability in 2020 and that trend is projected to grow even more in 2021. The Covid-19 pandemic forced businesses and consumers alike to adapt and change the way they buy, sell, and interact. The result was a new, innovative way to shop with convenience and ease. After experiencing the convenience of ordering a product and having it arriving to your door within hours, it’s highly unlikely that consumers will regress from this trend after the pandemic. It’s essential that small businesses understand what that means for their industry so they can stay ahead of trends and not fall behind their competition.

Here’s a list of the most notable consumer trends in the ecommerce industry that local businesses will need to pay attention to in 2021.

After 2020, businesses can expect to see a major influx of online traffic versus in-store (source: Mintel Reports).

1. Online Accessibility

More than ever consumers want to be able to access everything they need from the internet. Whether it’s ordering food, getting groceries delivered, or buying something off of Amazon, consumers are able to have virtually everything they need brought to them and left on their front porch.

In 2020, retail stores experienced a 10% decrease in total revenue compared to 2019, while ecommerce experienced an 18% increase. While the retail industry is not expected to recover until 2025, ecommerce is projected to continually grow by double digit percentages for the next five years.

This major shift in consumer purchase behavior makes it exponentially more important for local businesses to develop a strong online presence and become more accessible to their customers. This shift also emphasizes the importance of an easily navigable website that loads quickly and is mobile-friendly. Not only do these factors allow your website to rank higher on search, but it provides your visitors with an enjoyable customer experience that encourages them to come back in the future.

2. More Active Online Engagement

Not only did consumers receive a more convenient way to shop, but they also experienced an increase in brand engagement online. Customers expect their brands to be interactive with their audiences and easily accessible to answer any questions they may have. Consumers’ average daily use of mobile devices increased by over 50% in 2020, meaning that your audience should be much more engaged than ever before. If your social media and website content is not receiving more engagement, that may be a sign that you need to adjust your strategy.

It also wouldn’t hurt to seek out content ideas for small businesses if your audience is not engaged.

3. Paid Advertising

The best way to promote an ecommerce store is by sharing direct links with your audience. The most effective way to do this is through paid advertising. Feature a product from your store with a headline and copy that resonates specifically with your niche market and encourages them to click through and make a purchase. The way you target and write your ads will determine how successful they are, so you will want to study up on how to run Facebook Ads for ecommerce sites.

Leveraging paid ads helps you increase exposure and shows your store to people who are most likely to check it out and buy something. You can use targeting features such as purchase behavior and interests to narrow in on a warm audience that is already looking for your specific products. You can always check the latest trends in Facebook Ads targeting to better your chances at making relevant ads.

4. Customer Experience

Providing an enjoyable customer experience is crucial for succeeding on digital platforms. Since there is an abundance of online companies and ecommerce stores now, the way you interact with your customers and how you meet their needs should be a top priority. Make sure your website is easy to find, easy to navigate, and feels natural on a mobile device. Convenience and ease of use are the two driving factors of customer experience online.

With this in mind, you may want to test how mobile-friendly your site is and make necessary adjustments to improve your site speed and content displays. You can use Google’s Mobile-Friendly Test to analyze your domain.

Appearance is another key factor of enjoyment. Your site’s design greatly impacts how a visitor perceives your company and can determine whether or not they will return again. If your website’s colors are dull, your content is block-like, and it looks likes you filled out a premade template, visitors will feel like your company does not care enough to provide them with an enjoyable experience like other websites they have visited.

You can use a checklist for website design best practices to help ensure you are staying up to par with competitors.

Takeaways

2020 brought a storm of change and innovation for small businesses around the globe. A major shift in consumer preferences occured from in-person to online. It is now more important than ever that your company leverages strategies like social media marketing and SEO to be found easily by potential customers. It’s also important that you stay active on your digital platforms and engage with your audience.

Providing an enjoyable customer experience will ultimately determine how many sales you see and along with that, repeat sales and word-of-mouth. It’s crucial that your website is optimized for user experience so that your customers continue to come back.

Leveraging paid advertising will also play a vital role in ecommerce sales in 2021, as many stores have already taken advantage of this marketing channel. Knowing how to speak to your customers and efficiently promote your products will determine how effective your ads are and how many site visitors you get.

Whether you have observed it on a personal level or not, everything is slowly shifting to online. Building a brand that lasts will revolve around your online presence and your digital marketing strategy. Make sure your digital platforms are fully optimized to help you achieve your marketing objectives and help streamline growth through your sales funnel. Stay active, stay engaged, and always remember: the company that understands their ideal customer the best is the company that will dominate the market.