Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US retail ecommerce sales and forecast, at current prices, 2015-25
- Impact of COVID-19 on eCommerce
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on ecommerce, July 2020
- Opportunities and Challenges
- Improving the seamless shopping experience
- Increasing engagement through personalized experiences
- Small businesses can leverage social media to stay connected with consumers shopping online
- An uncertain future leads to scaled back spending and an increased focus on value throughout the entire consumer journey
The Market – What You Need to Know
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- The ecommerce market sees exponential growth
- Comfort levels with buying a variety of products online grow
- Access to the internet is not ubiquitous
Market Size and Forecast
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- eCommerce growth continues to accelerate
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- Figure 3: Total US retail ecommerce sales and forecast, at current prices, 2015-25
Market Overview
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- eCommerce is used on a regular basis…
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- Figure 4: Online shopping frequency, May 2020
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- Figure 5: Items purchased online, May 2020
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- Figure 6: Items typically purchased online by online shopping frequency, May 2020
- …but it still comprises a smaller piece of total retail sales
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- Figure 7: Total percentage of online purchases, May 2020
Market Factors
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- Unemployment, Consumer Confidence & DPI
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- Figure 8: Unemployment and Underemployment, January 2007-June 2020
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- Figure 9: Nordstrom Local, Brentwood CA
- Varied access to the internet
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- Figure 10: Comcast Internet Essentials
- Emerging technology ups the ecommerce game
- Augmented and virtual reality
- Digital showrooms
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- Figure 11: Diesel’s virtual showroom
- Artificial intelligence
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- Figure 12: Brookfield Properties and Fit:Match Partnership
- Social commerce
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- Figure 13: TargetShop
- Brands need to walk the walk
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- Figure 14: Target Black-owned businesses promotion
Key Players – What You Need to Know
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- Partnerships will be key to future growth and success
- Social commerce continues to climb
- Seamless shopping is expected
- Local businesses rely more heavily on ecommerce
- Plowing ahead with 5G connections
What’s Happening
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- Partnerships beyond a brand’s category
- Lululemon & MIRROR
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- Figure 15: Mirror demonstration
- West Elm & Zoom
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- Figure 16: West Elm Zoom background
- The rise of social commerce
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- Figure 17: Target Shop
- Seamless shopping: a new era
- COVID has accelerated the seamless shopping experience
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- Figure 18: Ashley Homestore interior design
- Brookfield Properties incorporates Fit:Match
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- Figure 19: Brookfield Properties Fit:Match
- eCommerce supports local communities
- Small businesses became a focus with the outbreak
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- Figure 20: Green City Market
What to Watch
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- Amazon moves further into seamless shopping
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- Figure 21: Amazon Dash Cart
- Digital showrooms bring the in-store experience online
- The heated race to 5G
The Consumer – What You Need to Know
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- Consumers want flexibility in their shopping journey
- Social media grows as a starting point for searches and source of inspiration
- The consumer journey does not end after purchase
- There are opportunities to overcome the price barrier
- Products need to resonate with consumers to encourage impulse buys
eCommerce Attitudes
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- Consumers want what they want
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- Figure 22: Attitudes toward ecommerce, may 2020
- The online shopping process is emotional
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- Figure 23: Attitudes toward ecommerce, may 2020
- COVID-19 changed the online retail game
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- Figure 24: Attitudes toward eCommerce, may 2020
The Elements of eCommerce
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- The elements work together to create an optimal shopping experience
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- Figure 25: eCommerce attribute importance, May 2020
- Gen Z wants a crafted experience
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- Figure 26: eCommerce attribute importance, by generation, May 2020
Shopping Starting Points
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- Social media playing more of a role in the shopping journey
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- Figure 27: Ulta Instagram bio
- Figure 28: Starting points for clothing, groceries or beauty products, May 2020
- Social media spikes for younger consumers
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- Figure 29: Starting points for clothing, groceries or beauty products, by generation, May 2020
- Consumers want options
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- Figure 30: Reasons for starting point, May 2020
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- Figure 31: Pinterest Lens
- Younger consumers look for stamp of approval by community
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- Figure 32: Lulu’s Ambassador
- Figure 33: Reasons for starting point, by generation, May 2020
- The basics need to be rock solid for brands to build upon
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- Figure 34: Important factors for online purchase, May 2020
Search Inspiration
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- Social blends inspiration and information
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- Figure 35: Sources of product inspiration, May 2020
- Instagram inspiration
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- Figure 36: Instagram inspiration
- Figure 37: Sources of product inspiration, by generation, May 2020
Mobile Usage
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- Mobile is closing the gap on computers
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- Figure 38: Typical online shopping habits, May 2020
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- Figure 39: Typical online mobile shopping habits, May 2020
- The shopping experience is connected through mobile devices
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- Figure 40: Mobile shopping attitudes, May 2020
- Millennials rely on their mobile devices along their shopping journey
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- Figure 41: Mobile shopping attitudes, by generation, May 2020
Post-purchase Follow-up
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- Companies must go beyond the transaction
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- Figure 42: StitchFix Offer
- Figure 43: Post-purchase opportunities, May 2020
- Provide younger consumers opportunities to be involved
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- Figure 44: Post-purchase opportunities, by generation, May 2020
Barriers and Frustrations
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- Price will always be a barrier to overcome … but it can be overcome
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- Figure 45: Allbirds carbon footprint
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- Figure 46: Barriers to purchase, May 2020
- Figure 47: TURF Barriers to purchase, May 2020
- Eliminate barriers to a smooth and speedy checkout
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- Figure 48: Frustrations with online shopping, May 2020
- Seeing is believing, even if seeing is virtual
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- Figure 49: Frustrations with online shopping, by generation, May 2020
Impulse Buys
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- Adding value will entice consumers to add more to their carts
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- Figure 50: Impulse buy drivers, May 2020
- Gen Z is driven by emotion when making impulse purchases
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- Figure 51: Impulse buy drivers, by generation, May 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 52: Total US retail ecommerce sales and forecast, at current prices, 2015-25
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Appendix – The Consumer
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- Figure 53: Sources of product inspiration, by race, May 2020
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- Figure 54: Barriers to purchase, by generation, May 2020
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