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Online sales increase during the pandemic:
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Online sales increase during the pandemic

The year of 2020 was a very different one for the online sales market. As in-store businesses remained closed for a long time, there was…

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The year of 2020 was a very different one for the online sales market. As in-store businesses remained closed for a long time, there was a global increase in up to 28% in sales through e-commerce, according to a report written by  ACI Worldwide

Although the pandemic has disrupted a number of businesses, it has accelerated the digitization process and created new opportunities through this sales channel  for many companies. 

According to a study conducted by PayPal Brazil, the increase of online shops in Brazil reached 40.7% this year. 

How will this boom of innovation affect Christmas in 2020? The number of online buyers will be higher than in the previous years, and your business needs to be prepared to meet this upcoming demand.

Continue reading to understand more about:

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Christmas 2020: how are sales going to be?

Despite the growth of online sales, the pandemic has affected the economy in many other ways and has resulted in unemployment in a range of sectors. Based on that, it is estimated that the volume of sales during Christmas 2020 will be much lower than in 2019.

The sales estimate, which before was R$60 billion, is now R$39 billion.

On the other hand, among people who have declared that they will be doing their Christmas shopping, 47% of them said they will be buying from an online store, according to research by National Confederation of Shopkeepers (CNDL) about Christmas sales.

The most requested range of products are:

The survey conducted by CNDL  also points out that the main factors for taking the decision to buy gifts for 2020 Christmas are related to price, offers and shipping – meaning that, the more discounts the better.

Online Sales in 2019 versus 2020

Online business was boosted by the pandemic and, from March to May, the Brazilian Electronic Commerce Association (Abcomm) registered more than 107 thousand new businesses. 

In 2019, the total small size e-commerce businesses was 26.93%, today it already represents 48.06% of the market.

A report written by Abcomm, in partnership with Online commerce, pointed out that online sales at the beginning of this year were already higher than in 2019. For example, during the Consumer Week, there was an increase of 22% in the number of orders.

Fast growth

The need to digitalize quickly has caused an accelerated expansion, but many companies still need to improve basic online sales processes such as, for example, the implementation of:

Reading Recommendation: [Podcast] Marketing, Sales and Product: the meeting of areas in the growth mindset. 

Artificial intelligence and the costumer experience.

AI is a technology that impacts end-to-end the consumer experience, regardless of the market. The education sector, for example, already uses artificial intelligence to improve student learning and enhance the acquired knowledge.

In the case of e-commerce, AI can help from the very first  interactions on the website and on social media, through humanized interactions, offering an omnichannel and personalized experience.

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AI and personalization

Artificial intelligence also has a direct impact on the customization of offers and content.

AI algorithms are commonly used to personalize the shopping experience and offer suggestions based on customer preferences. Such actions can increase the average amount spent, in addition to giving the customer an amazing experience.

Another possibility offered by AI is augmented reality. 

Some stores already offer the option for the consumer to take a picture of a certain item so that AI can identify similar products. The goal is to facilitate the search for items and assist in more assertive purchases.

New online consumer behavior

Covid-19 changed the way we live and created the need to adapt to the new challenges and to speed up the development of technologies. 

For those who were already used to shopping online, the process was much simpler, and companies did not need to make major changes. 

On the other hand, a high number of consumers migrated to digital, as informed by Mercado Livre, which gained more than 2 million buyers only in Brazil. This total corresponds to a 28% increase over the same period in 2019.

What were the major changes  in Brazilians costumer behavior during the Covid-19 crisis?

  1. Acceptance of online financial services

Due to the lack of availability of face-to-face services, many people started using online financial services. Cinnecta wrote a report on the digital financial markets and found that between February and June there was an increase in acceptance of the use of such services..

More than 70% of Brazilians say they will continue to use these online payment methods even after the pandemic.

  1. Number of Searches

Mercado Livre report points out that the average search time has increased, this means that, with more time available,  consumers have become even more meticulous when choosing a product and have started to compare prices more often.

  1. Purchase of health articles

Health products and medical equipment, which were previously purchased offline, saw a significant 300% increase in online sales.  In second place was consumer goods and food, which are also normally purchased directly in-store. 

  1. Trust in delivery services

During the pandemic, the delivery service became essential and stopped being a taboo for some people. A survey conducted by Mobills points out an approximate growth of 94% between April and June, compared to the same period last year.

Conclusion:

The online sales will probably never be the same after Covid-19. The costumer way has changed, and stores need to adapt to evolve the business digitally. 

If you still don’t own an online store, you should consider taking this step, and increasing your sales reach.

Digitization is not just a process; it is also a culture that must be fostered within the company. Create a clear training plan for people and take on technological solutions to improve your customer’s experience.

Keep following our posts and, if you want to know an artificial intelligence capable of improving service performance and online sales, Alana AI team is available for a chat.