Shopify: Future of Commerce 2021

2020 was an incredible year for e-commerce where many companies had to change their business model to adapt to the new shopping behavior of consumers.
Despite the many e-commerce success stories, such as Lululemon and Best Buy, many retailers still intend to continue investing in their retail storefronts. Which brings us to our question: is the pandemic-driven shift to e-commerce here to stay; or are consumers excited to visit stores again? What will commerce look like in 2021 and the years to come?
In the Future of Commerce 2021, Shopify unlocks five predictions based on findings from the data on their platform. To this end, we have picked out some key highlights and summarised them below.
Young consumers will determine the future business landscape as e-commerce grows
Consumers are reluctant to shop in-stores

84% of consumers have shopped online since the pandemic started. One of the reasons why consumers are reluctant to shop in-stores is because of the crowds during peak periods.
With the convenience of online shopping and the abundance of delivery options, purchasing from online stores does seem like a better alternative after all.
Social commerce is growing in popularity amongst younger consumers

54% of consumers prefer to shop online; with 67% of young consumers having shifted most of their spending to online shopping.
Younger consumers are also shopping via social media more; 54% of younger consumers made an online purchase with an independent retailer after discovering them via social media. Many social media platforms have also taken measures to enable shopping on their platforms:
Twitter has started testing new tweet display cards on their platforms for e-commerce pages to promote their products
Walmart and TikTok and their creators have been working together to host livestream shopping events whereby consumers can shop directly from the live streaming platform
Snap Inc. recently acquired Fit Analytics in an attempt to boost in-app purchases
Shopify is partnering with Facebook, Walmart, Instagram, and TikTok to further develop social commerce capabilities
YouTube launched interactive ad format and enabled product detection within videos
The transformation of physical retail
Retailers are offering more alternatives to meet consumers’ needs

The growth of e-commerce created a competitive environment between e-commerce businesses. In a bid to win consumers over, retailers started experimenting with new technologies to enhance consumers’ shopping experiences.
Shopify’s retail merchants have replaced 94% of Point of Sale (POS) sales through providing contactless payments, in-store shopping appointments, and alternative pickup and delivery options.
62% of consumers preferred making in-store purchases with digital or contactless payments
; which also helps retailers and consumers to adhere to social distancing and safety measures.
50% of consumers also opted to schedule for in-store shopping.
The option to schedule in-store shopping is popular in countries like Italy (66%), Australia (54%), France (53%), and Spain (50%).
Providing more delivery and pickup options

While 54% of consumers that shopped online during the pandemic still used traditional delivery services, a significant proportion of consumers opted for alternative delivery options:
28% of consumers received their parcels through local delivery
23% picked up their purchases in-store or curbside
21% used a pickup-point
In fact, retailers who provided a variety of delivery options for consumers to choose from gave them an edge over others who did not. In one of our studies in the UK, we found that 54% of UK’s top retailers offered options like click-and-collect and collection points as a delivery alternative. These methods of delivery are increasing in popularity in the UK and are expected to double by 2025.
Preference for curbside pickup and buy-online-pick-up-in-store (BOPIS)

Since the pandemic broke out, retailers have been offering curbside pickups and buy-online-pick-up-in-store (BOPIS) to consumers who made purchases online.
30% of consumers have tried it for the first time since the pandemic, and 64% of which have since used this service more often than before.. This alternative delivery option is especially popular in countries like New Zealand (39%), the US (39%), and Canada (35%).
It is also predicted that the growth of BOPIS will continue to accelerate. BOPIS is a convenient option for consumers to fill the gap between shopping in-store and online Consumers have more control over their own shopping experience without having to fret over stock availability and delivery costs.
The usage of pickup points

57% of consumers are using pickup points more frequently since the pandemic started. Pickup points are popular in countries like New Zealand (32%), India (32%), and France (27%).
Pickup points are a great alternative to consumers as it offers the flexibility to contactless delivery. Consumers using this option can also pick up their parcels within a walking distance if the pickup points are near the vicinity.
What is the future for physical retail shopping?
With consumers getting used to the convenience and flexibility of e-commerce, it will be interesting to see how retailers will lure shoppers back to their stores. Will consumers eventually overcome the discomfort of shopping in-stores caused by the pandemic? Or will we ever reach a point where e-commerce takes over physical retail shopping?
Keep a lookout for our upcoming studies to find out more! 😉
Source: Future of Commerce 2021
For more exclusive reports, insights, and interviews on the latest updates in e-commerce and logistics, follow us on LinkedIn or join our community as a member.
Also worth your time
Track your parcel here
Event Highlights
North America
Logistics & Supply Chain
Supply Chain Execution USA 2023
Jun 13 - 15, 2023 | McCormick Place Convention Center, Chicago
Europe
Retail & E-Commerce
Emerce Retail 2023
Mar 23, 2023 | Innstyle, Maarssen
North America
Logistics & Supply Chain
ProMat 2023
Mar 20 - 23, 2023 | McCormick Place
Oceania
Retail & E-Commerce
All Star Bash 2023
Mar 16, 2023 | Melbourne
Middle East
Logistics & Supply Chain
Materials Handling Saudi Arabia
Mar 03, 2023 | Jeddah, KSA
More discoveries
Funding Roundup: Bizongo, Homzmart, Vetted and Others Secured Early-Stage Deals
Aug 05, 2022
How Peak Season 2022 in Europe Might Look Like
Aug 05, 2022
TechCrunch: Shopify Invests $100 Million in a Marketing Automation Startup, Klaviyo
Aug 05, 2022
ITLN: Xpressbees Names Suraj Bangera as Senior Vice President of Cross-Border Business
Aug 04, 2022
Retail Dive: Amazon Launches Same-Day Shipping for Pacsun, GNC, SuperDry, and Diesel Customers
Aug 03, 2022
E-Commerce Logistics Race in Europe: Which Country Performed the Best in Q1 2022?
Aug 02, 2022
Supply Chain Dive: OnTrac and LaserShip Introduce Transcontinental Delivery Service to Prepare for Peak Season
Aug 02, 2022
Alcott Global Podcast: Importance of Supply Chain in Stationery Industry
Aug 01, 2022
Guest Post: 10 Ways Retailers Can Inspire Customers During Peak Season
Aug 01, 2022
Funding Roundup: Early Funding Rounds Secured by Cartona, DealCart and Others
Jul 29, 2022
Vogue: Glossier Launches into Wholesale Partnership with Sephora
Jul 29, 2022
E-Commerce Logistics Race 2022: Canada vs the United States
Jul 28, 2022
Macau Business: DHL Express Names Phil Corcoran as Australia’s Managing Director
Jul 28, 2022
Top E-Commerce Retailers in the United States 2022
Jul 27, 2022
Logistics Manager: InPost Now Has 4000 Parcel Lockers in the UK
Jul 27, 2022
Marketing Interactive: L'Oréal Appoints Kenny Ng as Regional E-Commerce Director
Jul 26, 2022
Guest Post: Why Logistics and Supply Chain Management Is Important
Jul 26, 2022
Guest Post: 7 Customer Retention Metrics That Allow You to Measure Customer Loyalty
Jul 25, 2022
Alcott Global Podcast: Revolutionizing Offshore Logistics
Jul 25, 2022
Guest Post: Top Trends in Logistics Technology to Watch
Jul 22, 2022
Funding Roundup: SupplyPike, Syrius Robotics Raised Series B Funds and More
Jul 22, 2022
Fibre2Fashion: Ceva Logistics Expands to Africa with Spedag Interfreight Acquisition
Jul 22, 2022
TechCrunch: Youtube Partners with Shopify to Boost Social Commerce Offerings
Jul 21, 2022
Top E-Commerce Retailers in Europe 2022
Jul 21, 2022
Guest Post: Essential E-Commerce Marketing Tips for Summer
Jul 20, 2022