Has e-commerce reached the tipping point, and is it here to stay?

July 3, 2020

Recent months have seen a drastic increase in the growth of ecommerce, creating an opportunity for brands to tap into this market and grow business both online and in store.

In 2020, average online transaction volumes have grown by 74% when compared to the same period last year. With more people shopping online, brands that are able to facilitate a wide range of consumer demands are able to gain a competitive advantage. A large part of this involves creating informative, branded pages that can capture the attention of shoppers and provide them with everything they need to make a purchase.

Industries with exceptional growth

In comparison to the same time last year, many industries have seen a significant increase in sales. Statistics have shown that the sectors listed below have reported the following increases in transaction volume:

- Garden essentials – 163%

- DIY – 136%

- Beauty – 111%

- Home products and furnishings – 97%

- Consumer goods and electronics – 58%

- Alcohol – 31%

Within these sectors, there are some products that have seen unprecedented growth, such as the sale of audio equipment, which rose by 459% in April alone.

For brands, this means that the demand for these products will have increased across both online and offline channels. Therefore, in order to reap the benefits, it is important for brands to design a consumer-focused, omnichannel approach.

Demand for omnichannel

The increased demand for specific product categories means that brands are in a unique position to capitalise on this interest, creating an omnichannel experience to engage consumers. 

It’s vital for brands to remember that while ecommerce and online sales are increasing, they still form a relatively low percentage of overall sales, with online sales making up 19% of all sales in 2019. In addition to this, for every $1 spent by consumers online, an additional $6 is spent in store as a result of internet research - the ROPO effect (Research Online, Purchase Offline).

This presents an opportunity that cannot be missed. With online research playing such a vital role in influencing both online and offline sales, it is more important than ever for brands to support consumers with all the information that they require to make an informed purchase. This also means that consumers can choose to purchase via their preferred channels, with brands showcasing click and collect information, live prices, promotions, store locators and more.

It is essential for brands to facilitate a wide range of consumers’ preferences. With offline impact still being vital to brands’ success, they must encourage the growth of ecommerce, whilst ensuring that they do not exclude shoppers who are only online for research purposes. As an example of its effectiveness, consumers that use digital when shopping in store have a 42% higher conversion rate than those who do not.

Summary

It is a brand’s responsibility to engage and direct customers to relevant products and information, facilitating both online and offline shopping. The demand is high, meaning customers are looking for ways to purchase these products, and the brands that make this information easily accessible and digestible are the ones that will succeed.

How can Dotter help?

Dotter can bring brands and consumers closer together, creating engaging campaign shops that provide consumers with all the information they need, while giving brands in-depth analytics and campaign overviews.

To speak to a member of the Dotter team about the ways you can grow online and offline sales, contact us on theteam@dotter.me.

Author: Holly Worthington