Understanding the COVID-19 Impact on E-commerce
2021 and COVID-19 has brought forth the “new normal.” Almost one year ago (as of the writing of this post), the world stopped in its tracks to help prevent the spread of Covid-19. And with that, came sweeping changes in how we work, interact and ultimately, how we live.
How we purchase products was clearly one of the first behaviors to massively shift. Though our culture had been slowly leaving the shopping malls and big box stores behind in favor of the ease and clickability of e-commerce, the pandemic swiftly accelerated this change, adding online grocery businesses into the rapidly increasing pivot, with grocery delivery apps like Instacart overwhelmed seemingly overnight.
The E-commerce Boom in Numbers
Covid-19-related online shopping resulted in an additional $174.87 billion in e-commerce revenue in 2020, with online sales accounting for nearly all gains in retail in 2020. This is the first time in history that ecommerce sales accounted for all retail sales gains, with Amazon alone representing nearly one third of all U.S. e-commerce sales.
There are additional significant shifts from last year. For the first time, Walmart will be the No. 2 online retailer in North America, surpassing Apple Inc. You can see the top 10 online retailers from Digital 360.
What Are People Buying Most? The 3 Top E-commerce Trends
With Americans spending more and more time at home over the past year in tandem with having extra time, products that are related to upgrading our living spaces have been top sellers, with doormats being ranked highest. Like many home decor items, doormats have become one of the bestselling products online during the pandemic. Moreover, doormats help people keep dirt and grime out of their homes and with a hyperfocus on cleanliness during this time, the need for this is heightened.
People have also been taking the time to purge and engage in a year-long spring cleaning spree. The more time we spend at home, the more time we’re looking around realizing how we’d like to improve our living spaces. According to Shopify, the search term storage containers is generating 135,000 searches per month, with related terms “food storage containers” bringing in 74,000 searches per month and “storage bins” generating 135,000 searches per month.
Pulling in the number three spot, kitchen towels has seen a massive spike in sales. With handwashing occuring at a higher frequency, people are likely using them more and the increased use may have created a heightened awareness of their towels – maybe they are too stiff, or have stains. Brands like Williams Sonoma, Bed Bath & Beyond, and Pier 1 take up significant market share. Dropshipping costs are often lower for kitchen supplies, which means sellers can charge less than big retailers so you can offer lower prices to audiences that don’t want to overspend on items like kitchen towels.
How to Invest in E-commerce
Many savvy investors are profiting off this boom and it’s easier than most people think. You actually don’t need your own line of products when opening an Amazon Wholesale FBA or Walmart Dropshipping business of your own, just enough capital to buy these products, which can actually be funded by third-parties like Payability, who offer enticing capital solutions for e-commerce sellers.
Why should you do it now? With Americans saving money by eating at home and not vacationing, they have accumulated a whopping $1.3 trillion (yes, trillion with a T!). Effectively being forced to curb their consumption dramatically is predicted to have a massive impact once the pandemic is under control (with “fingers crossed” projections looking at summer or early fall). Once the floodgates begin to slowly crack open, spending is expected to increase exponentially. Though the hospitality and shopping malls will benefit initially, online spending is a convenient habit consumers are now conditioned to prefer.
How Elite Automation Can Help You Start Your E-Commerce Business
Thinking of starting your own e-commerce business? This is exactly what we do at Elite Automation. Our team of seasoned e-commerce sellers has decades of experience and millions in sales collectively. We set up your Amazon or Walmart Dropshipping store and provide contracts with the nation’s top brands and get your inventory set up in 30-60 days during the onboarding process. We manage your products, inventory, sales, customer service & store entirely. We have several Automation clients generating 6-7 digit revenue figures annually.
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