Europeans have not only increased the number of e-purchases, but they promise that even after the pandemic ends they will not give up their new habits. After overcoming COVID-19, 9 out of 10 people will stick with online shopping, according to a special McKinsey report.
As many as 92% of respondents in the McKinsey study "European consumer sentiment during the coronavirus crisis" declare that when it comes to online shopping, nothing will change in their habits in 2021. And we are talking about a truly substantial group here. As many as 94% of those surveyed use this form of acquiring goods. This is an important clue for business.
– We are talking about enormous force, but the effect of scale alone is not everything. Not only did the number of people shopping online increase, but so did the conversion rate. This is one of the most important parameters in the world of commerce, showing the real relationship between intent and the decision to purchase – explains Aleksandra Szarmach, Chief Marketing & Sales Officer at Nethansy, a Sopot-based startup that brings Polish companies onto Amazon, where it comprehensively manages their sales. – According to an analysis carried out by Digital Commerce 360, the conversion rate rose by about one third during the pandemic – adds Szarmach.
Changes drive changes
Changes drive changes
What is more, as experts from the American analytics firm found, even once the pandemic is over, in all major categories customers plan to spend more on shopping. Considering only physical goods, the biggest gains will be seen in segments such as consumer electronics (up 54 pp), pet supplies (42 pp), supplements (41 pp) and children's accessories and toys (39 pp).
This state of affairs is certainly influenced by a change in the paradigm of work and life. About one third of respondents (36%) in the study admitted that over the past 12 months there had been a change in their lives related to work or school (e.g. they work from home more often).
Once the COVID-19 pandemic subsides, 24% of surveyed Europeans do not plan to return to their old pre-lockdown habits and intend to abandon their current office in favor of working from home.
– Remote work has been embraced above all by employees. Half of the respondents in the McKinsey Future of Work study say that in the future they want to work remotely at least 3 days a week. 25% are determined and say that if this demand is not met, they will change jobs. Naturally, this will resonate in commerce, and once again the beneficiary of the changes will be e-commerce. Let us also not forget that returning home from the workplace is one of the most popular ways of shopping – says Aleksandra Szarmach of Nethansy.
Farewell to tradition
Farewell to tradition
The power of consumer habits as an opportunity for e-commerce
McKinsey research also showed that since the start of the pandemic as many as 67% of respondents from the Old Continent have eagerly experimented with new shopping possibilities. The largest group, 36%, changed the online store or website where they order goods, but more importantly, as many as 78% declared that even when the pandemic ends, they will still try new things.
– According to a report by a UN unit, last year alone the share of e-commerce in global retail trade rose by more than one fifth – says Aleksandra Szarmach, adding: – This is the last call for business to join the transformation. This is a perfect moment to take advantage of the launch of Amazon's Polish branch. The world's largest marketplace makes it possible to reach 150 million users of the Prime subscription, which is one of the most popular subscription services in the world.
Multichannel sales should be a goal for companies primarily for 2021, but also for the years to come.
The customer must be "taken care of"
The customer must be "taken care of"
Online sellers are also trying new things, albeit in order to optimize sales. Amazon's entry into the Polish market means that small e-shops will have an even harder time than just a few months ago.
– Today it is not enough to just refresh the portal and add a tab that makes online shopping easier. Websites must be created in an intuitive way, and the seller should anticipate the buyer's moves – says Wiktor Salamon, creator of Notipack, software that enables website administrators to send notifications to people browsing a given product or service online. Salamon also argues that owners of smaller e-commerce stores have tools at their disposal that will help them stay competitive. – When buying goods on large marketplaces, we immediately see that a given assortment is popular. We can check reviews and among hundreds of similar products we can quickly choose the cheapest. In the case of smaller stores it looks completely different, but a properly constructed widget that makes it easier to contact the store, offers a discount coupon or shows a product rating can increase trust in the brand – notes Salamon.
Summary
The McKinsey report shows that the pandemic has permanently changed Europeans' shopping habits – 92% of those surveyed declare that in 2021 they will not give up e-shopping. What is more, the conversion rate in e-commerce rose by about one third during this time, and once the pandemic ends customers plan to increase spending on, among other things, electronics and pet supplies.
Experts emphasize that this is the last moment for transformation – especially for smaller stores, which must contend with Amazon's entry into the Polish market. The key is to be not only an intuitive website, but also tools such as trust-building widgets, like the Notipack software. This is an opportunity for those who respond to the new needs of buyers.
