Over half of global retail spend ‘will be online post-pandemic’
Over a quarter of spend in the UK is via Amazon – but 70% of shoppers want them to pay more taxes, according to new research.
Wunderman Thompson Commerce has shared its annual Future Shopper report on the changing eCommerce landscape and shoppers habits in a post- COVID-19 world.
The pandemic has had consequences for each and every sector, none more so than retail – with consumer demand rescinding and sky-rocketing in equal measure over the last year. Unsurprisingly, Amazon, Alibaba, eBay and similar marketplaces continue to be a mainstay in shopper’s hearts; in the UK alone, over a quarter of all consumer spend is via Amazon. But, consumers are at a crossroads with close to 7 in 10 consumers supporting the idea of amazon paying more tax.
Can this desire for Amazon to be more ethically transparent counterbalance the growing boom in digital shopping channels?
The UK and global findings from the report include:
• Over a quarter (27%) of consumer spend is via Amazon in the UK o However, more than half (56%) of global consumers support the idea of amazon paying more taxes, rising to over two-thirds in the UK (69%) and 70% in the US. • In a post-pandemic world, online shopping will account for more than half (51%) of retail sales globally • 72% of global shoppers say that online shopping came to their rescue in 2020 • Nearly three-quarters say (73%) eCommerce would be more important to them in 2021 o Yet, two-thirds of global shoppers would prefer to shop with brands that have both an online and offline presence
The report surveyed over 28,000 consumers across 17 countries on their current and future shopping habits – revealed that, in a post-pandemic world, online shopping will account for over half (51%) of retail sales globally.
72% of global shoppers say that online shopping came to their rescue in 2020 and nearly three-quarters (73%) say eCommerce would be more important to them in 2021. Another contributing factor for 60% of global shoppers was being more comfortable using digital technology in the wake of the pandemic.
One of the retail winners following COVID-19 was marketplaces, with 42% of all online spend globally going to the likes of Amazon, Alibaba, JD.com, Mercado Libre and eBay. While their dominance is frightening to some, many consumers seem unconcerned – with two-thirds (64%) saying they are excited by the prospect of buying everything through one retailer or marketplace in future.
Yet Amazon and the like may not have everything their own way. More than half (56%) of global consumers supported the idea of Amazon paying more taxes, rising to over two-thirds (69%) in the UK and 70% in the US.
Hugh Fletcher, Global Head of Consultancy and Innovation at Wunderman Thompson Commerce, said: “eCommerce can no longer be treated as the supplementary sales channel. Global shoppers have clearly stated that, in the future, it will be their primary channel for retail purchasing. For some organisations, and particularly marketplaces, they are reaping the rewards of investing in a strong online presence, while the news has been littered with stories of businesses who have not identified these changing demands going bust.
“Amazon continues to be the leader of the retail pack in the West, alongside Mercado Libre in LATAM and a number of marketplaces in APAC, but they are facing increasing pressure from consumers to be more ethical and from competitors who are investing in their own direct-to-consumer offerings, digital marketplaces, innovations and social media platforms. Couple this with the fact that COVID-19 has weakened brand loyalty, and serious challenges remain in the sector – it’s no longer enough to just have an online offering that reaches customers on one or two channels and to expect long-term ROI.”
Despite the unabated rise of eCommerce and the fear to physically shop – 41% say they are frightened about shopping instore in the wake of COVID-19 with 48% of shoppers saying the same last year – consumers are demanding integrated omni-channel offerings from retailers and brands.
What’s more, two-thirds (64%) of global shoppers say that they prefer to shop with brands that have both an online and offline presence, while 59% of consumers said they wished brands would communicate seamlessly with them across all channels, digital and physical. And their expectations need to be met, with close to three-quarters (73%) saying retailers need to get better at giving them the products, service and experience they expect.
This means that retailers must operate across multiple channels including social commerce which is going to be a massive aspect of eCommerce. In fact, 44% of global consumers have already bought from a social platform and over half (56%) intend to increase this in the future.
“2021 and beyond will usher in an era of more diverse online offerings, with marketplaces, direct-to-consumer brand sites and social commerce all having a key role to play. Businesses must ensure that this more complex online landscape complements their overall retail offering which needs to span digital and physical,” Fletcher concluded.