Is e-commerce replacing offline purchasing as a result of the ongoing digital transformation that is influencing consumer behavior? The response shows a noticeable change in the market, even though it is not definite. With the rapid growth rate, online shopping is going to gain more popularity and might change the way we shop shortly, although traditional retail has the edge at this point.
With a steady increase, e-commerce currently accounts for 18% of all retail sales in the United States in 2024, up from 15% in 2022, and is predicted to reach 20% by 2026. Online sales will increase to $9.4 trillion in 2026 from $5.8 trillion in 2022. Despite such an increase, physical stores still rule the market but are seemingly in decline, particularly between 2022 and 2024, falling from 85% to 78.8%, while in this period e-commerce increased its share in the U.S. from 15% in 2022 to 21.2% by 2026.
The convenience of online shopping allows customers to save time and money by shopping whenever they want, which is an important factor driving this growth with 48% of shoppers will appreciate this almost as much as time saved. Free delivery and discounts also increase the attraction. Besides, 46% of consumers are attracted to the prospect of saving money through discounts, special offers, and free shipping. 31% of consumers are using digital channels for hard-to-find products, thus, brand visibility would help raise the online shopping experience. According to 30% of all shoppers, the websites should be optimized for mobile devices, and in turn, 22% of shoppers believe that customer reviews displayed prominently will help them make more informed decisions. At the same time, physical stores will continue to possess some advantages like immediate access to products, touching and handling of products, and no shipping costs.
That being said, physical shopping is far from disappearing, even with the rise of e-commerce. For immediate needs and tactile experiences, in-store shopping is still very popular. Therefore, a hybrid strategy that combines the advantages of online and offline channels to accommodate changing consumer behaviors is probably where retail is headed.
Thus, the success of future retail will depend on the balance between adjusting to the growth of e-commerce while still retaining the advantages of brick-and-mortar stores. MBE specializes in helping to ease the transition from traditional to digital and online shopping, especially with our solutions in Pack & Ship and Marketing. Learn more about how we can help local SMEs in your country to transform their business model.
Cover Photo: Gemini
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