The onset of COVID-19 severely impacted the retail industry, leading to the closure of physical stores. These abrupt changes caused uncertainty for the future of in-store experience.
As a result, retailers started struggling to serve customers through other channels effectively. Though popular online stores like Amazon and Shopify continued to grow, local merchants have experienced a crisis.
Today, several companies have a burning desire to return to “normal,” moving past the pandemic towards life as it was two years ago. But, for retailers, it does not seem in the realm of possible.
Here’s how digital consumer trends have shifted the ground and redefined “normal” in shopping trends.
Retail Industry: a Pre-Pandemic Perspective
Forget the future of retail for a while. Even before the pandemic, brick and mortar retailers were competing against Amazon and other e-commerce businesses, and the outbreak of COVID-19 accelerated those challenges.
Better prices, plenty of coupons and discounts, the convenience of home delivery, and various products were already enticing enough for consumers to make online purchases.
To add to that, virtual try-on and 3D configuration technology with AR was another plus. While physical stores have limited and pre-designed items, ecommerce stores allow customers to create personalized items.
This gives them a chance to see how a particular product actually looks even before they pay a hefty amount for it.
Moreover, according to Oliver Wayman, “Only 11% of respondents declared that they would not shop online for apparel, while 54% were already familiar with the practice.”
Considering this, ecommerce is predicted to increase 20-25% in the US by 2024.
Further, 42% of millennials announced they prefer to shop online than make in-store purchases. It’s safe to say that the ecommerce world was already expanding, and the pandemic was a catalyst.
Permanent Shift In Consumer Trends
Previously, consumers shopped online for fun or perhaps convenience, but the COVID-19 outbreak forced the world to migrate online for everything.
Several countries implemented strict lockdowns to prevent the spread of the virus. This practice – out of necessity – encouraged consumers to buy online.
Statistics show that 92% of consumers have recently placed an online order for a product or service, and one in 10 customers do it several times a day.
Further, despite no lockdown currently, 87% of consumers intend to do at least some online shopping, 10% more than the previous year.
The increase in online demand lit a fire under ecommerce business owners, and they have started offering more to their customers.
Ecommerce owners are trying their best to create ease for customers and boost sales with various features, including an increase in sales, buy now pay later model and easy navigation.
Perhaps this explains why 9 in 10 customers have shopped from ecommerce giant Amazon.
Digital Consumer Preferences
Digital shopping today is not similar to how it was two years back. Now, consumers no longer tolerate sub-par online shopping experiences – as they might have done before the pandemic.
With growing ecommerce trends, consumer preferences have shifted, which is now the new “Normal.” What’s more, this trend doesn’t seem to vanish any time soon. In fact, it is expected to accelerate with time.
Here’s what digital consumers prefer.
Discounts
Nothing attracts online shoppers more than a valuable deal and discount. Since they are less likely to stump across discounts in-store, consumers flock to websites offering exclusive sales and discounts.
Recent reports also show how deals and promotions attract new, loyal customers.
Timely Deliveries
Your online customer is purchasing online for a REASON.
A study shows that 69% of consumers are less likely to shop with a retailer in the future when the ordered item is not delivered within two days of the promised date.
Your online customers expect on-time and quick deliveries, and far-reaching ecommerce businesses are putting an effort to meet customer needs. For instance, FBA (Fulfillment by Amazon) makes quick and on-time deliveries to satisfy digital consumers.
Greener Offerings
Though it may seem unconvincing, digital consumers have started purchasing from online retailers that emphasize environmental sustainability. Perhaps that’s why consumers have stopped purchasing from unethical brands typically involved in animal cruelty.
Further, customers prefer buying from brands that offer products with reusable packaging.
Buy Now, Pay Later Model
Buy Now, Pay Later Model is yet another trend preferred by digital consumers. Consequently, online retailers benefit from it, too. The BNPL model allows ecommerce owners to:
- Attract new customers
- Increase conversions
- Raise average order value (AOV)
Did you know the percentage of Generation Z utilizing the BNPL model has grown from 6% to 36% in 2021? The drastic change implies how more consumers today prefer buying before and paying later than they did in the past.
Giving Shoppers a Reason to Purchase from Store
Since the consumer mindset has changed, brick and mortar retailers need to go above and beyond to encourage customers to purchase from stores. In other words, you need to give them a REASON to buy from physical stores.
Here are a few tricks to get the job done.
- 44% of customers say that in-store pickup options would give them a reason to purchase from physical stores, and 42% say curbside pickup options would encourage them to do so. As a retailer, you need to offer these solutions.
- If you don’t want your physical store to die any time soon, you need to offer contactless point-of-sale terminals where customers can use digital wallets to make payments. This practice would encourage one-third of customers to shop from physical stores.
Steve Sadove, former CEO of Saks and senior adviser at Mastercard, believes that it would take the next few months to decide the future of physical shopping.
Therefore, retailers should make an effort to fulfil the demands of customers to keep their physical stores functional.
Wrapping Things Up
The changing consumer trends have shaped the whole shopping mode. Several deals, discounts, and countless products are one-click-away from the customers. As such, nobody likes to visit a store to look through individual products.
Instead, they prefer purchasing from the comfort of their home. Unsurprisingly, ecommerce business owners are striving to meet the growing demands of online shoppers.
Meanwhile, this new “Normal” is putting physical retail owners in a position to go an extra mile to keep their stores alive.
