This is probably one of the biggest effects that the corona crisis will leave behind
One of the salient trends under the auspices of the corona crisis is the significant increase in the volume of online purchases worldwide. What started as a hesitant move to order food delivery so as not to reach the neighborhood supermarket, has become a global trend in every age, gender and sector.
Much has been said about the effects of the corona crisis, and now, close to a year since the outbreak of the crisis, the picture is clearer about spotty effects that may sooner or later pass, compared to trends that have managed to take root and may accompany us in the long run. In this context, for example, it can be estimated that the return of flights and vacations to activity as we saw before the epidemic is only a matter of time, probably in light of the vaccine approval and the start of the vaccine, so this effect can be classified as temporary. A significant but controversial impact of the Corona crisis is the move to work from home, where opinions are divided about the structural change it will create in the long-term labor market.
On the other hand, one of the most notable trends in the last year under the auspices of the crisis is the significant increase in the volume of online purchases worldwide. This is one of the trends most identified with the Corona plague, and what started with hesitant steps of ordering food delivery from the supermarket home, to avoid having to go to the neighborhood supermarket for fear of contamination, has become a global trend at any age, sex. And sector. In light of the special circumstances created and the adoption of the rules of social distance, many experienced online purchases this year in one form or another – and for some it was even the first time they experienced it. Many of these buyers will probably adopt this method of purchase even more in light of the high simplicity and convenience it offers.
According to forecasts by research firm Statistics from recent weeks, by 2023 the total expenditure on online purchases worldwide is expected to stand at about $ 6.5 trillion. This is compared to an expenditure of about 3.5 trillion in 2019. The forecast also predicts that spending in 2021 will be about 4.9 trillion, an amount that represents an increase of about 400% in the last seven years. Online shopping is now considered one of the most popular online activities in the world, with Asia leading the region with the highest volume of online purchases in China, the world leader in the field with companies like Alibaba and JD becoming world-renowned online retail powers.
China is the fastest growing place in the world today in terms of online purchases, there are not many places that match it in terms of purchase convenience, shipping speed and the ability to bring any product to the door. Expenditure on online commerce in Asia is expected to stand at about $ 2.45 trillion by 2020. North America is in line with expected and significantly lower spending of about $ 749 billion in the past year.
One of the amazing forecasts published on the NASDAQ website in 2017 talks about the fact that by 2040, about 95% of world trade is expected to take place online, and based on existing trends it is not inconceivable that in about 20 years this will indeed be the case.
Billion a day
2020 was also a record year as part of the Black and Cyber Friday acquisition celebration. This year shoppers spent a record $ 10.8 billion on Cyber Monday, up 15% from last year. As part of Black Friday’s sales in cyber, a new online sales record was set this year, with total spending that day reaching about $ 9 billion – a jump of about 22% compared to last year, according to data from Adobe Analytics.
The growth of the field is very noticeable among the global networks, and the impact is also evident here in Israel. For example, Amazon’s delivery service may return to Israel in the coming months. After the global retail giant previously tried to ship in Israel and even set up a logistics center, the move soon turned out to be uneconomic and was shelved, among other things, following the outbreak of the corona crisis. Now, the peace agreement and the normalization of relations with the UAE, Amazon is exploring the possibility of using warehouses located in the UAE for the purpose of making shipments to Israel, not through external sellers. Surgery.
The bottom line is that the change created by the Corona crisis in our online consumption habits will continue to be adopted as well, as many have discovered the simplicity and convenience of online purchases, as well as the wide variety and ability to quickly compare prices. And easily. It is clear that some buyers will sooner or later return to malls and physical purchases, and yet the change brought about by the crisis is significant for retail companies and represents a significant leap forward and potential for the entire field.