Shopify Releases 3 Years of Shopping Trends: 1 Million Merchants Say Pandemic Purchases New Normal
Shopify released a treasure trove of data from customer surveys collected in the past three years. The firm reached a milestone of 1 million businesses using their platforms this year. The data Shopify gathered paints an accurate portrait of a dramatically going-digital world.
“2020 has accelerated the industry by a decade, permanently altering the way entrepreneurs start, run, and grow businesses, as well as how consumers choose to shop and pay,” President of Shopify, Harley Finkelstein, said in an introduction. “Consider this report your crystal ball into the future of this industry.”
Finkelstein put forth five key predictions based on the trends Shopify found in the data. Be prepared, Finkelstein warns, for a new generation of retailers and consumers to forever change the world of commerce.
Key prediction one: Young consumers will change the business landscape as eCommerce charges ahead. Shopify predicts that younger shoppers changing their habits due to the pandemic will likely shop this way from now on. 67% of shoppers under 35 shifted to shopping online, compared to 57% of the 35-55 bracket.
Overall, 84% shopped online this year, compared to 65% in person. 53% of those that shopped online did so because they wanted to avoid crowds, 46% of consumers felt uncomfortable shopping in person.
Key two: Physical retail is transforming, giving local businesses new advantages. Consumer reports showed 62% of people prefer contactless purchases for in-store purchasing in 2020, an increase of 122% during the pandemic. Go figure. 94% of the point-of-sale retail lost in the first six weeks of shutdowns was replaced with online sales.
Key three: Consumers want to shop independently but are not. Businesses will adapt to make it easier to buy from a small business. Half of the consumers look for independent business owners, while 65% say they support small businesses. It turns out that only 29% of consumers shopped at a small business during the pandemic, giving ground to findings that small business is having trouble adapting to online-only commerce compared to larger chains.
Independent retailers need to make customers put their money where their mouth is. Shopify said that fast and free shipping could help. 59% of online shoppers say free delivery would improve their online shopping. 75% of merchants who generated sales in March through September did so with free shipping options on their site.
Key Four: Consumers will vote with their wallets. 53% prefer environmentally sustainable products, and 49% want the retailer to donate proceeds to charity when they make a purchase. The fourth of consumers that did buy local this year did so to support their community and local economy and create jobs.
Finally, our favorite, Key Five: Modern financial solutions will disrupt business and consumer banking finance and lending. Shopify found evidence for growth in their merchant financial platforms. 24% that applied for financing agreed with the 36% that faced problems from COVID-19 by stating: “My bank or financial institution does understand the needs of my business.”
The quality of user experience plays a massive factor for merchants; accordingly, 48% say “a good online bank or mobile app experience” is a top-three feature, while 62% of marketplace sellers say the same.
The findings conclude that explaining the trends was shared to encourage businesses to use the info to adapt and change, as they have been the past year.Last modified: December 14, 2020
Kevin Travers was a Reporter at deBanked.