Online Shopping Is Here to Stay
It’s no secret that the pandemic has hastened the shift to electronic commerce. Online sales soared as lockdowns were implemented across the country and many brick-and-mortar establishments were forced to close or scale back their operations.
According to the US Department of Commerce, e-commerce sales would increase by 31.7 percent year over year in 2020, hitting $759.47 billion.
In 2021, this trend persisted, albeit at a lesser pace. Year over year, online sales increased by 9.1% in the second quarter. Consider that sales had already climbed by 43.7 percent in Q2 2020 compared to the same quarter in 2019.
Our survey’s findings reflect this increased interest in internet purchasing. When asked how they had done their shopping in the previous month, 30% indicated they had done it largely online, and nearly 8% claimed they had solely done it online. Another 36% split their purchases between online and in-store purchases.
Based on these figures, it appears that e-commerce will remain a major priority for merchants in 2022. Companies will need to engage in e-commerce advertising to keep a presence in the highly competitive online space.
What do people want when shopping online?
To begin with, running a successful e-commerce business requires keeping a close eye on what consumers look for when shopping online. With this in mind, we asked our survey participants to select the three most important things to them.
The top concerns are how quickly the products will arrive and how much this will cost them. About 55% of respondents had fast and reliable delivery among their top three choices. Another 43.5% picked free shipping.
In-stock availability of products (chosen by 45.5% of our respondents) and a broad selection, more variety than in-store (34%) are among the main reasons why people turn to online shopping.
Furthermore, the user experience should not be overlooked. Fast websites, as well as easy-to-use mobile applications or mobile websites, were voted as the most important aspects of shopping online by 23% and 19% of the respondents, respectively.
Store visits are still important
In-person retail is not dead, despite taking major damage since the pandemic. In-store buying has been gaining momentum as the vaccination became accessible and the economy began to revive.
Visits to indoor malls increased 3.2 percent in October compared to the same month last year, according to foot-traffic analytics firm Placer.ai.
While the increase can be linked to the holiday season, there is cause for optimism in terms of in-person buying.
What do people desire when they go shopping?
The chance to see, touch, and test things are the primary reason why consumers choose to shop in-store, according to 64 percent of respondents. This is followed by the desire for immediate fulfillment (51%) and the availability of local items (43%).
Furthermore, customers still place a premium on the in-store experience. The ability to navigate the aisles quickly (41%), helpful sales personnel (21%), product presentations, the way the products are displayed (16%) were all among the top three selections
The Modern Consumer Is Mobile-First
Many of us nowadays use our mobile phones to remain in touch with friends and family, stay up to date on the latest news, shop, and enjoy some well-deserved amusement, whether it comes from social media, video streaming, podcasts, or other sources.
Mobile will account for over a third of all time spent with any type of media in 2021, according to Business Insider, with consumers spending an average of 3:10 every day on their cellphones. Smartphone time spent increased at the quickest rate since 2014 in 2020, and this trend is predicted to continue, reaching 3:25 in 2023.
As a result, it’s not surprising that when the respondents were asked which device they use the most to browse things online, mobile came out on top with a staggering 65 percent of the vote. The PC came in second with 23%, followed by the tablet with 8%.
Companies can no longer afford to overlook their customers’ mobile experience in today’s always-on digital world. Mobile advertising is on the upswing, with mobile display ad sizes among the most popular this year.
Personalization Will Rely on First-Party Data
Since Apple’s Safari, Mozilla’s Firefox, and Google declared that third-party cookies would no longer be supported, marketers have been looking for alternatives to help them send targeted messaging to their target audiences.
Consumers are concerned about the protection of their data, yet they still want personalization. As a result, instead of relying on intermediaries, organizations must cultivate direct relationships with their customers and collect first-party data.
Experts recommend encouraging clients to engage in surveys or interviews, subscribe to the company’s email newsletter, or answer a few questions about their preferences in a pop-up on the website as ways to collect valuable data.
Consumer interest is sparked by social media
Nowadays, more and more people are discovering products through social media. Because media consumption has increased dramatically in recent years, consumers are more likely to engage in “passive buying” while scrolling through their social media feeds. As a result, compared to the previous year, social media shopping climbed by 36% in 2021.
People do make purchases based on what they see on social media, according to the report. When asked if they had done so in the previous three months, half of our respondents said yes.
With billions of monthly active users on sites like Facebook, Instagram, and TikTok, marketers should not underestimate the massive exposure opportunity that social media provides.
allow you to present things in aesthetically appealing ways, while TikTok is ideal for attracting younger consumers. Make sure you discover the best ones for your company and concentrate on them.
Keep in mind that social media advertising is still effective. 28% of respondents said they bought anything after viewing an ad on social media in the last three months.
Making the Transition from Influencer to Creator Marketing
Aside from marketing, producers are the other major engine driving product interest on social media. Nearly 29 percent of respondents who bought something after seeing it on social media became interested in it after seeing it in posts or videos in their feed.
Nathan Apodaca, also known as 420doggface208 on TikTok, is an excellent example of how creator promotion works. In 2020, he became popular with a video of himself skateboarding while lip-syncing to Fleetwood Mac’s “Dreams” and drinking Ocean Spray cranberry juice.
The Ocean Spray brand received an unexpected boost as a result of this. As other TikTokers attempted to reproduce the viral video, product sales soared, and brand awareness soared as a result of the video’s widespread media coverage. The firm sent Apodaca a cranberry red Nissan pickup truck filled with juice as a thank you.
One thing to take away from Apodaca’s story is that honest, compelling content allows marketers to engage viewers in a world where traditional advertising can feel oversaturated.
Younger people, in particular, are fed up with feeling like they are being sold to. That’s partly why influencer postings, which clearly advertise things, aren’t as effective—only 15% of people who bought something after seeing it on social media did so after seeing it in an influencer post.
Creators, on the other hand, create content that benefits the communities in which they live. This is what catches the audience’s attention.
Now, more than ever, sustainability is critical
People began to be more concerned about the future as a result of the Covid disaster, particularly in terms of health and safety. Given this, as well as the recent environmental disasters in the United States—such as the California wildfires and Hurricane Ida—it’s no surprise that customers are more concerned about environmental issues and want businesses to follow suit.
When asked what matters most to them in terms of the brand when making a purchase, the majority of our respondents (38%) chose sustainability over brand recognition (30 percent ).
This is something that a lot of huge brands are aware of. Unilever, P&G, and Nestlé, for example, have already pledged to reduce their environmental footprints. This decision may appear costly at first for small firms, but it will undoubtedly pay off in the long run.
People are becoming more engaged in their local communities
People were reminded of the significance of human connection after a long time of social isolation, which made them more inclined to want to engage in local communities. Purchasing locally produced products from small businesses with local ownership is a way to give back to the communities that have proven to be such an important part of our lives.
They have discovered early on in their research that the availability of local products is the second most important reason why people choose to shop in-store.
Furthermore, 17.5 percent of respondents consider the brand’s location to be a major factor when making a purchase. After sustainability and popularity, this makes it the third most significant aspect of a brand.
Similarly, the company’s involvement in social concerns, which received 9 percent of the vote, and the fact that the brand is minority-owned, which received 5.5 percent of the vote, were both deemed essential by a survey. Even though these choices are not based on geography, They show that consumers want brands to offer an opinion on current events. Ignoring these difficulties is no longer an option, especially among the younger generations.
What does this mean for businesses? Small businesses will profit from the increased interest in locally sourced, community-sourced items, which will help them make up for some of the revenue lost during the pandemic. This can be interpreted as a wake-up call for large corporations to humanize their brands and become more active in the communities they serve.
The Self-Care Market is Exploding
People are seeking consolation after so much disturbance, resorting to self-care goods for a much-needed boost in their well-being. Investing in self-care and self-improvement has become a popular strategy to boost resilience and cope with everyday stress.
Personal care retail e-commerce revenue in the United States is predicted to reach $35 billion in 2021, following a 27 percent increase in 2020. In November 2021, Google Trends reported that interest in the phrase “self-care” was at a five-year high.
The results of a poll done also indicate that there is a surge in interest in the self-care industry. The majority of participants said they are likely 36 percent or very likely 25 percent to purchase self-care and self-improvement products soon.
People are converting their living spaces into multipurpose spaces
People have been spending more time at home than ever before because working from home became the norm and numerous hangout spots such as restaurants, gyms, and cinemas had to close. As a result, they began investing in house upgrades and activities at home to make the environment where they spend the majority of their time as comfortable as possible.
Lowe’s, the world’s second-largest home improvement retailer, stated that sales have increased this year, hitting $27.6 billion in the second quarter of 2021. Demand for office furniture, fitness equipment, kitchen appliances, and everything else that could help people stick to their routines from the comfort of their own homes soared as well.
When asked if they had made any house modifications in the previous year, the vast majority of poll participants (65.5 percent) said “Yes.”
And, given the difficulty of renovations and the fact that more Americans have recently invested in new residences, it appears that these initiatives will continue in 2022.
About us
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