Can we say that we are witnessing the awakening of eCommerce in the retail sector? Let's ask the data.
In the UK alone, "3400 jobs a week were lost in 2020," according to the Centre for Retail Research. "And cross-border online retail in the European Union had a total turnover of 146 billion euros over the year, an increase of 35% compared to the previous year"(E-Show Magazine).
One of the sectors most affected by mobility restrictions has been the retail sector. Profitability has been reduced; losses have increased, massive employee layoffs have increased, among many other things. As a result, the retail sector has experienced more losses than gains over a period of time.
How do we leave uncertainty behind? To what extent do technologies play a role in their recovery?
To summarise the changes, we will take a look at the TOP 500 Cross-Border Retail Europe compiled by the Cross-Border Commerce Europe platform.
The UK is the first in the ranking, with 33 billion (+38%), followed by France, Germany, and Spain.
"Of the 146 billion euros of cross-border online retail revenue in the EU during 2020, Eurozone members accounted for 60% of the total, with £87.25 billion. " The figures suggest that this could continue to grow in the coming years.
Details to highlight in the online retail industry during the pandemic:
The most remarkable aspect of this study is that, for the first time, the top 10 is occupied by omnichannel retailers. A communication model is based on using different channels of interaction with the customer in a centralised way and following the same strategy. The user can see an ad on Facebook or another social network, contact the company via email, and then complete the purchase on their website.
As a result, the customer experience is improved thanks to the ability to be in constant contact with the company through multiple channels simultaneously.
"Omnicanality is not an alternative to multicanality, but rather an evolution of multicanality."
This is undoubtedly one of the sectors most affected by the restrictions. The impact of the pandemic on retail sales has been felt strongly, and eCommerce has positioned itself as a real alternative to cushion the decline.
This is one of the main reasons why eCommerce is growing. In fact, spending in online stores has been very favourable since the beginning of the pandemic, an evolution that contrasts with that of face-to-face or physical sales.
It is even said that there has been a radical turn in consumer habits, as consumers have internalised new ways of purchasing goods and services and processing their payments. Do you want proof of this? Take, for example, the number of online purchases made in the last year.
The UK has already become the first country in the world where eCommerce has grown the most, and it is expected to continue to do so throughout 2021. In this context, technological enablers have allowed the retail sector to adapt and accelerate its recovery in the short term:
ECommerce gives the consumer a voice and fosters new ways of interacting in the online world. Moreover, due to the digital transformation that many businesses are undergoing, they are surviving this new stage. However, not all sectors have been affected to the same extent.
The question now is what makes the difference between increasing sales and maintaining profitability, or reducing purchases and closing a business?
We have compiled the key findings on the evolution of online retailing during the pandemic and want to share them with you. Take note!
How are you experiencing this change? Share your experience with us at PayXpert.