Attention, e-commerce merchants: The holiday season will be rife with opportunities, thanks to the COVID-19 pandemic as well as to the increasing popularity of online shopping. That means there is no time to waste when it comes to making e-commerce payments as convenient and flexible as possible for consumers, whether they’re ordering items for delivery to their homes or using the “buy online, pick up in-store” (BOPIS) model.
Sales and Spending Trend Upward
The proof is in sales and holiday spending forecasts. Holiday retail sales, in general, are expected to increase between 1 percent and 1.5 percent, Deloitte’s annual holiday forecast indicates. According to the consulting firm, holiday spending will work out to sales of $1.147 billion and $1.152 billion during the November to January time frame.
Even better news centers on the e-commerce segment of the market. Consider the Deloitte forecast, which pegs e-commerce sales as skyrocketing by 25 percent to 35 percent year-over-year during the 2020-2021 holiday season. That’s compared to an increase of 14.7 percent in the 2019-2020 holiday season. Deloitte anticipates e-commerce holiday sales to ring up at $182 billion to $192 billion, while Adobe Analytics projects “record high online sales of more than $189 billion on a 33 percent year-over-year jump.” In a report, Adobe analysts stated that further economic stimulus could push online sales by $11 billion, bumping up the total to more than $200 billion and implying a 47 percent year-over-year sales surge.
Moreover, online shopping volumes appear poised to be the highest of all time, with 64 percent of consumers polled for PowerReviews’ Holiday Consumer Survey noting that they will spend more online this year than last. A survey by Glassbox shows that 70 percent of U.S. consumers intend to make most of their holiday purchases online this year via web or mobile. Similarly, a survey of 1,000 shoppers conducted by Dynata for Redpoint Global found that 62 percent of individuals planned take the e-commerce route for all of their holiday shopping.
Consumer spending, too, is expected to show gains. Of consumers surveyed by Service Management Group, 20 percent said they plan to spend more money on the holidays this year, despite financial concerns brought about by the COVID-19 pandemic. Fifty-nine percent of respondents said they intend to spend about the same on holiday gift shopping as they did last year.
Here to Stay
Even when the holidays are over, it’s prudent for e-commerce merchants to get—and keep—their payments act together. Twenty-seven percent of Americans queried by SYKES said that they have no idea when they will feel comfortable shopping in stores again, and 25 percent said they have no intention of shopping anywhere other than online until a COVID-19 vaccine is widely available.
Moreover, while 62 percent of consumers surveyed by Quadini said they use BOPIS (Buy Online, Pick-Up in Store) to decrease their chances of contracting COVID-19, 87 percent of consumers who participated in a survey by weighing solutions provider Shekel said they favor options like BOPIS and curbside pickup as an alternative to completing their shopping in-store. This is a clear indicator that BOPIS is not going away anytime soon, if ever!
Multiple Payment Options Wanted
If statistics are any indication, e-commerce merchants that want to maximize their potential to ride the online shopping wave would do well to ensure that they have more than one online payment option in place. Studies show that the majority of consumers want to select from multiple online payment methods, with one study putting 73 percent of Internet shoppers in this category.
E-Complish provides several different solutions for online payment acceptance. Find out more or schedule a consultation here.