Ecommerce has been growing fast pre COVID-19 years. The pandemic then pushed even more U.S. consumers online, contributing an additional $105 billion to online revenue in 2020. This trend accelerated e-commerce by two years, as estimated by Digital Commerce 360.
Online sales reached $791.70 billion in 2020, with a 32.4% rise from $598.02 billion in the previous year. Ecommerce thrived in 2020 due to store closures, lockdown restrictions, and shoppers’ fear of contracting the coronavirus in public. Figures from Q1 2021 reveal that the COVID-19 is still making an impact on retail spending. Online sales increased 39% year-on-year in Q1 2021. Nearly triple the 14% increase in Q1 2020, and faster than Q3 and Q4, 2020.
Salesforce’s Q2 Shopping Index reveals digital commerce growth began to stabilize in the second quarter of 2021. In the three months prior to June 30th, global e-commerce revenue growth slowed to low single digits (3%) year-on-year after seeing a 63% uplift in the first quarter of 2021.
On the contrary, the UK appears to have retained some of its momentum from the start of the pandemic. Results from Q2 2021 show the region has experienced a 17% growth in the same metric compared to year before. That is well ahead of the US which saw a 2% drop over the same period.
Despite a global slowdown in growth, consumers ‘remained online and continued to grow revenue for retailers’, said Salesforce. This can be proved by an increase in Average Order Value, up 17% year-on-year to $90.64. Although, the number of products purchased online declined by 1%.