How has 2020 changed the way consumers shop, and what does it mean for eCommerce merchants in 2021? If only we could have entered 2020 with a ball prediction of what lay ahead… Thankfully, the team at Shopify has given us

just that for 2021. What legends.

Shopify released their research on the long run of Commerce, 2021 this month and it’s a superb read. Whilst we all know that 2020 has been a large year of change for us in eCommerce, Shopify has collated their data from over 1 million merchants and consumers globally for the year and made some predictions for 2021. We’ve done our greatest to gather the 32-page report below.

Shopify’s 5 key predictions for 2021;

1-Young consumers saw the best shift to online spending and can change the way brands do business.

As a brand, meeting your customer where they're and providing them with an answer should be at the forefront of everything you are doing. If it isn’t, you better get to that quick smart for 2021. the info shows that customers are now more reluctant to buy in-store (37% of latest Zealander’s) and the majority are now shifting their spending to online only (54% of Kiwi’s since March).

Globally, younger consumers are making the most important switch to online. Over half changed more of their shopping habits to online since the start of the pandemic when put next to earlier within the year.

2-Physical retail as we all know it'll transform, giving local businesses new advantages.

Resilient retailers will look to technology and experiences to fulfill customer’s needs.

At the height of the worldwide pandemic, merchants had to maneuver swiftly to adapt to changed shopping habits from consumers. 94% of Shopify Merchant’s POS (Point of Sale) sales that were lost within the first 6 weeks were made up entirely with online sales.

Of those who still offered in-store services, 62% of consumers feel lighter making in-store purchases with merchants who offer digital or contactless payments.

There was also huge growth for merchants who allowed customers to pick curbside development or local delivery. From May to August 2020, when given the selection for local pickup of delivery, internet buyers spent 25% more and had a 25% higher cart size.

-39% of Kiwi shoppers used curbside pickup or buy online, acquire in-store.
-57% of consumers say that they're now choosing local delivery, or curbside development options more often than before the pandemic.

3-Consumers expressed the need to buy with independent businesses but still purchase from marketplaces for convenience.

With concerns for the local economy grew as a result of nationwide lockdown laws, consumers turned to support local and tiny businesses who needed it most.

-65% of consumers say they support small businesses
-57% chose to buy local to strengthen the local economy.
In New Zealand – 53% of consumers said they might seek for independently-owned businesses to support and 50% had purchased from an independently owned business (online & instore).

Convenience and speed continue to be a deciding factor for consumers, with 59% of internet buyers saying that free delivery would improve their shopping experience. Further to the current, 23% are frustrated after they need to pay extra for shipping.

Shoppers are not any longer interacting with brands only through their website. Conversational commerce has seen huge growth this year, with the brand-to-consumer touchpoints expanding into social media channels and online chat functionality. From March 16 to Dominion Day Sales attributed to speaking increased by 185%.

4-More consumers will vote with their wallets.

Brands must demonstrate authenticity, transparency, and accountability as consumers increasingly support local businesses and sustainable products. With such a large amount of brands and products to settle on from, consumers are increasingly making purchasing decisions supported by brand ethics and sustainability.

In New Zealand,

-35% of shoppers are significantly more likely to retort positively to retailers making a donation to a cause with each purchase.
-40% prefer green or sustainable products.

5-Modern financial solutions will disrupt business and consumer banking, finance, and lending.

Speed and access to capital, faster ways to pay with digital wallets, and more flexible payments like installments will grow in popularity.

Ease of use and ease with banking may be a large factor for merchants choosing a partner bank. 48% Of merchants say that a “good online banking or mobile app experience” is one amongst their top 3 most vital features when considering a bank for his or her business, which was second only to “low banking fees.”

The growth of buy now, pay later options for merchants was significant in 2020. the amount of Shopify merchants who offer buy now, pay later has increased by 60% since the beginning of the pandemic. Interestingly, among households that have made a procurement using buy now, pay later, 80% of high-income households have used it quite once, compared to over 50% of lower-income households using it on just one occasion.

So, what does all of this mean heading into 2021?

As a merchant, being agile, able to change and scale is crucial to success. Having sound knowledge of consumer behavior and where they require to buy for your product or service will empower you to satisfy their needs, when and wherever they're.

None people could have predicted the events of 2020, and who knows what lies sooner than us in 2021. Equipping yourself with the correct data, digital partner and mindset should set you in the right direction, wherever it may be in 2021.