The first product ever bought online was a book in 1995 on Amazon. Now, 25 years later, the e-commerce industry has generated $2 trillion; sales worldwide are look set to grow at an even more unprecedented pace.
Over the past 25 years, the retail industry has been revolutionized by e-commerce. The rise of e-commerce has dramatically impacted everything, from purchasing to designing to warehousing. Here are a few trends to look out for in 2020:
Surge in Demand Fueled by COVID-19
The coronavirus pandemic has made an imprint on almost every industry. Many of these industries have suffered quite significantly, like the restaurant industry or the traditional brick-and-mortar stores. However, the pandemic has had a positive impact on e-commerce.
With the US in lockdown and much of the rest of the world, online shopping has snowballed. Amazon has reportedly doubled its profit to $5.2 billion over the pandemic. Additionally, many traditional stores have migrated to online avenues to survive and plan for the long term. Furthermore, it has been estimated that over 100,000 brick-and-mortar stores will shut down by 2025, which indicates that e-commerce is set to grow even further.
With this expected growth, companies need new funding sources, at least in the short term, to cover costs in development, delivery, and warehousing.
Social Media Trends
Social media, initially just a way to stay in touch with friends and family, has become an ever-present component of our lives. Social media is now a source of news and a vehicle for social movements and organizations. However, social media is also increasingly entering the e-commerce world.
As so many young people spend so much time on outlets like Instagram and TikTok, social media has a great platform to act as channels for products and services. Additionally, with the right planning and funding, brands are better able to market their products through social media and raise awareness.
Increased Inclination Toward Green Shopping
As the environment and climate change dominate the headlines, many consumers want the brands they purchase to reflect ethical and socially responsible green policies. According to a survey, 50% of e-commerce shoppers say that the environmental impact their shopping decisions.
As the climate becomes more important in the years ahead, e-commerce firms should invest funding in ensuring their warehousing, packaging, and delivery are meeting green standards.
With the proper source of funding, your e-commerce could adequately prepare for and cater to future trends? Get in touch Global Capital Partners Fund. They are New York’s leading commercial lending firm and provide bridge financing in Minneapolis, MN. Get in touch with us for more information.