E-commerce wave opens a door for 'buy local'

Retail has been turned upside down, with more businesses than ever dependent on e-commerce. With shoppers significantly cutting back on in-store visits, the demand for convenient online and digital alternatives are at an all-time high.

What’s more, a recent industry study estimates that 73% of online sales could come from mobile purchases by the end of 2021. Local retailers have a good chance at stealing business from big-box companies if they play their cards right and correctly utilize mobile. You see, consumers are sensitive to the struggles of small businesses right now, and as a result, the push to “buy local” can be felt across the nation. In fact, the Think with Google report found that 66% of shoppers planned do more local shopping during the recent holiday season and “available near me” searches have grown over 100% in the last year.

Social commerce has quickly evolved from a mere buzzword to an undeniable trend in e-commerce. Today, consumers are spending a lot of time on social media apps and use them for shopping. Unlike social media marketing, which directs consumers from social media platforms to purchase goods from a website, social commerce completes the entire sales function within the social media site itself.

Now, as a result of the pandemic, we’ve seen media usage soar. In fact, retail social commerce revenue in the U.S. is expected to reach $38 billion in 2022 (up from $19 billion last year). Knowing this, it’s natural that social networks are now integrating buying experiences directly into their platforms as it allows them to keep their audiences on the network longer, collect valuable transaction data and charge significant fees.

In recent years, we’ve seen retailers clambering over each other to gain an advantage in the shipping and delivery logistics game. But in 2020, the pandemic forced customers to transition to online shopping.

E-commerce giants like Amazon are pushing the envelope even further by providing same-day and next-day shipping to more markets than ever before. And while it’s still uncertain as to how they plan to scale beyond their already massive logistics operations, there is talk of housing inventory in smaller, local locations to ensure that order delivery is faster and easier. Businesses capitalizing on increased demand for same- and next-day delivery will have a significant competitive edge in 2021.