Rapid Surge In New e-Commerce Merchant Accounts
The rapid surge in new e-Commerce Merchant Accounts is signaling a growth spike in the e-commerce industry is probably the only thing that isn’t shocking about 2020. While the COVID-19 pandemic severely impacted a lot of sectors around the world, e-commerce is one of the industries that have continued to thrive, and it’s not surprising why. The global pandemic kept everyone indoors throughout 2020, hence 60% of people’s interactions with companies occurred online. This led to rapid e-commerce industry growth and it is predicted that e-commerce merchants will continue winning after the Coronavirus situation is over.
The Impact of COVID-19 on e-Commerce
The COVID-19 pandemic changed the way we travel and socialize. It has affected the way we work and it has definitely changed the way we buy things. According to statistics, about 62% of U.S. consumers shop online more now than before the outbreak, and one UK survey even found that 74% of people in all age groups now feel more comfortable making online purchases due to COVID-19.
Because of the pandemic, e-commerce sales have skyrocketed as opposed to the rest of the retail industry. On weekly basis, about 36% of consumers now buy products online. Before the pandemic, this percentage was 28%.
In the light of the pandemic, food and drink is one specific sector that has seen a major shift to online purchasing. Before the pandemic, merely 9% of consumers shopped for groceries on the internet. Now, about 63% of consumers are buying more groceries by phone or online than before, and many more are likely to continue to shop by phone or online when social distancing measures are removed. So, the future of e-commerce merchants looks bright.
Pre and Post-COVID Forecasts For e-Commerce Merchants
It is well-known how much the COVID-19 pandemic has changed the way we shop and how it has significantly impacted the online retail sector. But what was the situation before the pandemic changed the picture? It is not surprising that e-commerce was already growing even before Coronavirus and now it is predicted that more consumers will continue to spend more conservatively than they did before the pandemic. Ecommerce is going to lead retail revenue. And while in-store sales decline due to lockdowns and other reasons, the eCommerce Merchants Accounts will enjoy a substantial increase in business year-after-year.
According to a Salesforce survey, about 61% of responders say that they expect to spend more time shopping online even after the COVID-19 pandemic. Meanwhile, 60% say that the pandemic transformed their relationship with technology.
The Bottom Line
E-Commerce was already a thriving industry but the COVID-19 pandemic caused it to skyrocket and it is most likely that it will continue to grow as the future is decidedly digital. There’s no telling for sure what you can expect from this sector after the pandemic, but the statistics from both before and during the Coronavirus outbreak suggest that e-commerce merchants will continue winning post-pandemic and online shopping is where our attention should be as we try to look forward.
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About The Author
Mark Sands, co-founder of High Risk Merchant Account LLC, an authoritative expert in the high-risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial-related topics.