3 Ecommerce Trends To Watch For In 2021

E-commerce sales rose over 30 percent in 2020, driven by unprecedented consumer demand during the global pandemic. As stay-at-home orders shifted from weeks to months, many consumers have been forced to get used to shopping online, which has resulted in tremendous growth in the industry.

In essence, the pandemic has accelerated the indoctrination of more shoppers into the online ecosystem. From soaring total sales to new opportunities in niches previously untapped by entrepreneurs, in the coming year e-commerce will continue to evolve in ways that seemed impossible before the pandemic.

Kevin Zhang, a serial e-commerce entrepreneur and creator of the Branded Niche e-commerce program, has been watching this move. I spoke to him recently for his insight into the future of the industry in 2021.

In addition to the general growth, three important e-commerce trends have emerged that will determine the market in 2021 and beyond:

Shopping habits rethought

The biggest catalyst for ecommerce growth has always been the industry’s ability to break the consumer’s old habit of visiting local stores. Older sections of the population, who may previously have been cautious about online shopping, will enjoy the newfound convenience and will continue to be e-commerce consumers, even when the stationary locations are fully utilized again.

Increased competition in digital advertising

While the market for eCommerce has expanded due to the pandemic, so has competition. Companies and marketers that are able to lead innovation in advertising content will continue to generate higher profits.

In addition, digital content has become increasingly important and companies are increasingly investing in this category. This was the case before the pandemic, but like so many other things, the coronavirus really accelerated that investment.

Major retailers who did not adapt their business model before the pandemic to get the most out of online advertising have either gone out of business or learned a very hard lesson.

In 2021, eCommerce will be a higher priority on every company’s agenda, fueling the “arms race” over digital content.

Increased demand in apartment-related niches (entertainment, housewares, plumbing)

While social distancing could be completed in the near future, the psychological effects of the pandemic on consumers around the world will be permanent.

This offers many new opportunities for innovative entrepreneurs. E-commerce niches that had little pull in the past can now become lucrative playing fields. Consumers, for example, will think about sanitation in a very different way, which is likely to fuel demand for products designed to protect individuals from future outbreaks. It wouldn’t surprise me if a popular subscription box focused on hygiene becomes a dominant player.

In the year ahead, as with any major disruption, businesses will face both obstacles and opportunities. The proactive actors will seize the day while companies that remain complacent will be left behind – in 2021 and beyond.