The surge of online shopping during the Covid-19 pandemic led to an additional $900 billion in e-commerce spending in 2020, giving retailers a lifeline, Chain Store Age reported.
The figures come from Mastercard’s Recovery Insights: Commerce E-volution report and reveal that out of every $5 spent on retail, $1 came from e-commerce in 2020. That’s up from $1 of every $7 in 2019. Internationally, e-com jumped 25% to 30% during the pandemic, with higher sales volume and shoppers placing orders in a number of different countries.
While retailers were forced to scramble to accommodate the massive shift to online shopping as people stayed home, at least some portion of the transition to e-commerce is likely to stick. Between 20% and 30% of the global shift to digital is expected to be permanent, with potentially higher rates for essential retailers.
“Essential retail sectors, which had the smallest digital share before the crisis, saw some of the biggest gains as consumers adapted,” the report reads. “With new consumer habits forming and given the low pre-Covid user base, we anticipate 70[%]-80% of the grocery e-commerce surge to stick around for good.”
Digital payments also increased over cash for in-store purchases during the pandemic, with non-cash payments growing an additional 2.5 percentage points above the ongoing trend for stores and restaurants.
See the full story at Chain Store Age.