At any point of the digital transition,…
This year, as COVID-19 has swept the United States, the retail approaches and places of Americans have also undergone significant shifts. Millions of individuals have started focusing on Amazon and other websites and software for shopping, and the figure has reached a new record. They are in high demand for masks, toilet paper, soap and hand sanitizer. However, there is also a heavy market for groceries, restaurant dinners, puzzles, scanners and even dumbbells.
As a result, supermarket companies such as Amazon, Target, and Wal-Mart have benefited a great deal, while retail stores and independent boutiques offering clothes or other “non-essential” items have been forced to close their doors and drive shoppers away. Almost 10,000 stores in the U.S. have been indefinitely closed this year alone. Looking ahead on market success in 2020, we will learn that internet shopping is no longer the future of the retail sector, but it has become a daily reality. This year, for several weeks or months, city councils in the United States forced shoppers to give up buying in shops, and even when they had the chance to reopen in stores and return, most of them opted to shop online.
For whatever explanation, individuals who used to ignore internet retail shops now rely on online shopping. Usually, it is much more comfortable than discovering on supermarket shelves everything you like. Yet this year’s rapid growth of internet retail would have a significant effect on the way millions of Americans operate, the consolidation of corporate influence, and the reconstruction of local communities.
According to Mastercard data, only about 13% of retail purchases were made online at the end of last year, and by the end of 2020, this figure was about 20%, which means that every 5 dollars is 1 US dollar. Under normal circumstances in recent years, when the average growth rate of e-commerce is between 12% and 16%, this jump will take several years to achieve. But U.S. e-commerce sales will increase by more than 30% in 2020.
Amazon is predictably the winner in this massive move, according to data from eMarketer. It is reported that its US retail sector has grown by 39 percent this year, and its market share of all online retail in the US has risen to 39 percent. The revenue and earnings of the e-commerce giant have achieved historic highs, even in the event of early warehouse capacity difficulties and shipping disruptions, internal labour battles, and protective steps related to COVID-19 billion dollars.
And it will demonstrate its unprecedented intensity before the end of the holiday. Although many other stores no longer offer prompt delivery a week or two in advance of Christmas, Amazon will guarantee same-day and next-day delivery on certain online orders before December 23, due in part to the coverage of vast warehouses across the United States and the ongoing growth of its own delivery network.
Amazon, however, is not alone. With a small rise in their market share in online shopping, Wal-Mart and Target have both grown tremendously. Part of their popularity came in the early months of the outbreak, along with the new curbside and in-store delivery systems for internet purchases, delivering food and other on-demand items online. Small companies will need to shift their products online, and it has succeeded with some digital platforms that appeal to small and medium-sized businesses that do not want to depend on Amazon. In the first nine months of this year, Shopify, which sells e-commerce tech solutions to small and medium-sized enterprises, saw a year-on-year rise of almost 100 percent in sales.