COVID has a lasting impact on eCommerce growth
The COVID pandemic has had a major and lasting impact on the way we buy and sell items, particularly in the online realm.
And although COVID-19 has accelerated the growth of eCommerce transactions around the country, Australia still lags behind other major countries and is below the global average rate of 22 per cent. So there is still great scope for further expansion of this sector. In a research report by CBRE, they forecast the penetration rate will reach, if not exceed, 20 per cent by 2025.
CBRE cites several key factors including demography, usage, culture and infrastructure driving eCommerce growth. They predict that over the next five years Australia will require at least 2.4 million square metres of additional eCommerce dedicated logistics space to support the growth of internet sales.
As we emerge from the pandemic, Australians continue to frequent online channels when purchasing non-essential goods, but are still heading to supermarkets and physical stores when shopping for essentials.
Other than the COVID pandemic having an impact on volumes of eCommerce sales there are several trends also driving this change.
Mobile optimisation
Recent US research found that 72 per cent of consumers use their phones to shop. So it’s important that your website is optimised for mobile use, and will also work for tablets and computers. Getting the customer experience right whether it be online or offline is essential. According to research from Salesforce 79 per cent of consumers say their experience in interacting with a brand is just as important as the products the brand offers.
eCommerce payment methods
As eCommerce has grown, so have the payment options. Buy Now Pay Later has grown and grown in popularity, particularly for non-essential retail items, as well as payment by cryptocurrencies. No matter what payment options you accept, the process needs to be fast, efficient and secure to deliver on consumer expectations.
Emerging eCommerce models
Subscription eCommerce and recommerce are two big trends to watch in 2022.
Subscription eCommerce refers to online sales where customers sign up to receive a regular delivery of a product or service. According to emarketer.com subscription eCommerce grew a massive 41 per cent in the US in 2020 – and Australian consumers are signing up for the same trend.
Recommerce is not a new concept, where pre-owned goods are resold online but it has also experienced a surge as a result of the COVID pandemic. The majority of sales of pre-owned goods were previously individuals selling to each other, but this has now been joined by many online ‘Op shops’.
This trend is being driven by young shoppers who want a unique look and to shop sustainably.
Sustainability matters
Ethical and environmental issues are having a growing impact on the eCommerce industry. Sustainability affects how people shop online.
According to an Australia Post survey one-in-four shoppers selected a brand due to ethics and sustainable practices, and 60 per cent are willing to pay more when it comes to buying sustainable and ethically made products.
At Orange Canvas, we understand that customers are looking to work with companies that value sustainably. We are Sedex approved. Sedex is a not-for-profit membership organisation dedicated to supporting companies to manage responsible sourcing throughout their supply chains. Sedex operates the world’s largest ethical audit online platform for collecting and sharing ethical supply chain information.
Supply chain disruption
During the COVID-19 pandemic, the volatility of Australia’s supply chain has been exposed, creating an array of problems. As imports were stifled, work was affected, and deadlines weren’t met, prices rose. The Government has begun to address the situation with increased funding for businesses to strengthen the supply chain within Australia and encourage businesses to look onshore rather than offshore.
However, some predict the supply chain crisis could last another two years.
Social commerce
Social commerce is essentially selling direct from social media.
Previously, consumers tended to get inspiration for online purchases from their social feed and then jump across to a reputable site to make the purchase. Now, more consumers are willing to buy straight from socials.
This is particularly true of younger shoppers.
How we can help at Orange Canvas
The COVID pandemic has had a major and lasting impact on the way we buy and sell items, particularly in the online realm.
Consider the Orange Canvas team your experienced eCommerce fulfillment and marketing support team. We don’t just give you the tools to succeed – we operate them for you under the complete understanding of your business with your brand upfront.
For more information on how Orange Canvas can support you to keep your team engaged, whether in the office or when working remotely, reach out to our team for a chat.
