Spending Habits Change to Produce More Sales Online

Online sales have seen a significant increase this year compared to last year. We expect to see online sales increase year over year as a general rule. The pervasiveness of online shopping is a recognized trend, and in a global society trending toward convenience and fast delivery times, online shopping is the obvious choice.

This year, the way money is spent globally has changed dramatically. This can be primarily attributed to the coronavirus and the impact it has had on the economy and spending habits. People are looking for safer ways to spend their money, and many shops are moving to a contactless point of sales method. Why go out to use the credit card when you could stay inside and do the same from the convenience of an internet-connected device?

Major Online Spending Increase

How big is the jump for 2020? The biggest increase in online sales came in July, when the figures were up 55% from the previous year. August was nearly as good for online merchants, with sales increasing to an impressive 42% from the previous years. These are major sales increases, accounted for by stimulus check spending, people staying at home with little to do but shop, and a preference for shopping online as opposed to physical store shopping because of safety concerns.

Breaking down the kinds of sales we are seeing, the reports show that BOPIS sales were up 259% in August alone. That’s buying online and picking up in the store, and this change shows a willingness to go out and physically buy things in a fixed location rather than searching in numerous stores for the same item.

Moving from Physical to Digital Sales

As online sales increase, physical store sales are decreasing, for the most part. Consumers are shopping at online retailers instead of their local stores, sending many businesses to bankruptcy. Those businesses already struggling before Covid are seeing their history of diminishing returns catching up to them at an exacerbated rate. Going out of business sales or bankruptcy filings are common across the world.

Major brands like Hertz, JCPenney, Pier 1 Imports, and GNC are closing hundreds of stores. On the other side of the coin, online sellers like Amazon, Alibaba, eBay and more are flourishing. Those major companies who operate both physically and online, like Walmart, are doing just fine as well.

We are seeing this shift from physical to digital happening across entire industries. Where the physical casino has to operate at reduced capacity and adhere to curfew laws in many countries, the online casino industry is doing quite well. Consumers used to gambling will find a casino somewhere, even if they have to use a source that isn’t very conventional for them. This isn’t an industry that loses customers by the droves, so those that are going away from the physical locations are simply seeking out supposedly safer digital options.

Digital food services are managing to succeed where their physical counterparts are suffering. The online food delivery industry is expected to take in $200 billion a year in just a few years. They are well on their way to getting there thanks to the boost that 2020 has given them.

It’s very common in many cities to see more cars delivering food than people going out to eat. The safety of home and the ease of online ordering are so appealing that it becomes the go-to option for many people.

As lockdowns persists, online shopping is likely to become more prevalent. More and more people are working from home these days, and that is expected to be the new normal for a lot of businesses, as many of them transition at least part of their workforce to an at-home model.

Many teachers are working at home for some or all of their workweek, and thousands of office workers are avoiding the common commute and doing office work at home as well. It makes sense that a lot of them are buying their lunches, finding their entertainment and doing much of their routine shopping through online avenues. Expect online sales to continue to do very well for the foreseeable future.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes