An additional $900 billion was spent in retail online around the world in 2020 as the covid-19 pandemic kept consumers at home and most purchases were made online. E-commerce made up roughly $1 out of every $5 spent on retail in 2020, up from $1 out of every $7 spent in 2019, according to Mastercard’s ‘Recovery Insights: Commerce E-volution’.
About 20-30 per cent of the global pandemic-related shift to digital is expected to be permanent.
The report drew on anonymised and aggregated sales activity in the Mastercard network and proprietary analysis by the Mastercard Economics Institute, which modelled global retail e-commerce across payment types to determine the additional spending.
The report pointed out a few overarching trends:
• Early digital adopters go into overdrive: Economies that were more digital before the crisis—such as the UK and US —saw larger gains in the domestic shift to digital that look more permanent than the countries that had a smaller share of e-commerce before the crisis, such as Argentina and Mexico. Asia Pacific, North America, and Europe were the strongest regions in driving e-commerce adoption.• International e-commerce during the pandemic: International e-commerce got a boost both in sales volume and the number of different countries where shoppers placed orders. With more choices at their fingertips, consumer spending on international e-commerce grew around 25–30 per cent year over year from March 2020 through February 2021.
• Consumers increase their e-commerce footprints: Reflecting expanded consumer choice, the analysis showed that consumers worldwide made purchases at a greater number of websites and online marketplaces than before. Residents in countries like Italy and Saudi Arabia are buying from 33 per cent more online stores, on average, followed closely by Russia and the UK.
An additional $900 billion was spent in retail online around the world in 2020 as the covid-19 pandemic kept consumers at home and most purchases were made online. E-commerce made up roughly $1 out of every $5 spent on retail in 2020, up from $1 out of every $7 spent in 2019, according to Mastercard's 'Recovery Insights: Commerce E-volution'.#
• Shift to electronic payments accelerated in the US: Even in-store, covid-19 accelerated the transition to digital—with more consumers moving from paying in cash to touch-free payments. Non-cash payments jumped by 2.5 percentage points beyond the ongoing trend. This led to an acceleration of the shift from cash to electronic payments by a full year.
Fibre2Fashion News Desk (SG)
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