eCommerce Brand Implications: Macro, Consumer, and Retail
Today’s macroeconomic environment is causing significant change throughout retail. The COVID-19 pandemic has caused labor, transportation, and raw material shortages, ultimately resulting in short supply and delayed deliveries to retail customers.
Source: CRC Macroeconomic Webinar, 07/21/2021, n = 305
Consumer Factors: Supply shortages have led consumers anywhere and everywhere to find products
Given the virus, many consumers turned to online shopping, and due to the pain points of widespread out-of-stocks and delivery delays, they began using a variety of eCommerce sites and platforms for the first time. 85% of these consumers are now comfortable making these purchases online and most plan to continue to lean on eCommerce in the future.
Source: CRC Online Consumer Study, March 2021, N = 1,391 respondents in total, ~350/platform
Retailer Factors: Supply chain constraints + outsized online demand create opportunity for the omnichannel
While these macro and consumer factors lifted all eCommerce boats in 2020 and beyond, omnichannel retailers were particularly well-positioned given they could offer Buy Online, Pickup In-Store (BOPIS) and Buy Online, Deliver From Store (BODFS) to alleviate some of the fulfillment challenges that pure play online retailers were facing on the front end, and delivery delays for consumers on the back end.
Source: Company filings and CRC estimates
Brand Implications: eCommerce growth now much more dependent on omnichannel vs. pre-COVID:
While the large majority of brands’ eCommerce growth came from Amazon a couple years ago, all the dynamics described above have changed the game. Omnichannel is more important than ever before, along with newer platforms and channels like Instacart and Direct to Consumer. Therefore, brands need the proper resourcing to capitalize on the widespread growth opportunity. Our benchmarking data suggests a 50% increase in eCommerce hiring plans from 2020 to 2021, with 43% ramping up their investments in both omnichannel and Amazon relative to their pre-pandemic plans.
Source: CRC 2020 eCommerce Teams Benchmark
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