Unlike many traditional brick and mortar businesses, demand for e-commerce brands have skyrocketed as retail operations have come to a stand-still amid the COVID-19 pandemic. Due to entire populations sheltering at home and reluctant to leave, Emarketer predicts that e-commerce sales will grow by an impressive 18 percent in 2020.
The convenience offered by e-commerce has proven to be indispensable during the pandemic. Consumer habits have been drastically changed by COVID-19, and e-commerce will eventually create a gold rush as brands vie for consumer dollars and mind share.
The segment of e-commerce brands that are poised to see great benefits is Direct to Consumer Brands or DTC Brands. These brands are built selling their products and services digitally by leveraging platforms and data to deliver unique customers’ experiences to specific audiences.
With no clear resolution for the pandemic in sight for the near future, e-commerce continues to be the primary selling tool for many businesses, both young and old. Huge and established companies such as PepsiCo have gone out of their way to launch their own DTC initiatives. Large companies like PepsiCo don’t make investments or changes in their business unless they feel there is a long term case for revenue growth or strategic advantage to be had. The ones that invest will be the ones reaping the rewards in the long term, even when we have a return to “normal.”
As e-commerce continues to grow over the next decade and beyond, there will be new opportunities for brands and merchants to offer new digital experiences to enhance the customer experience while providing more actionable data.
As e-commerce continues to fuel the battle for convenience and habitual buying behaviour, frictionless commerce methods will also very likely see growth as customer preferences shift away from purchasing products at retail stores and look for easier and more convenient ways to obtain goods.
In addition, since most of e-commerce is still being completed on screens, it is absolutely vital for brands and merchants to create and deliver bold imagery that tells a story to their customers, and how the product will benefit them. E-commerce remains one of the most exciting fields of opportunity with plenty of growth ahead of it. However, it will be the companies that execute today that will have the edge in the future.