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In 2017, the Nasdaq predicted that e-commerce would account for 95% of purchases by 2040. Even five years later, this already remarkable prediction of market transition has been further accelerated by the Covid-19 pandemic; despite health and safety protocols meant to get people out of their homes and into stores, most are still inclined to shop online.
Buying trends vary by country, but e-commerce gives you the option of a global marketplace. This will increase the opportunities for business success, especially if you find a niche among the top performing categories. A recent Oberlo analysis ranked the purchasing categories in terms of global revenue. The top five:
The biggest driver of e-commerce right now is fashion, with consumers expected to spend nearly $ 760 billion on purchases this year. In fact, over 25% of all dollars consumers spend online is spent on fashion, and those numbers are expected to increase. Europe’s leading online fashion retailer, Zalando, saw its gross merchandise value increase by 34% in the second quarter of 2020, and the sportswear market is expected to experience a compound annual growth rate of 6, 7% until 2026.
The closure of retail stores during the pandemic hasn’t just displaced online shopping – people are spending more, too. A recent Experian survey found that 11% of people reported spending more money on clothes than before the pandemic, a net increase of 5% from the previous year. An additional essential and fascinating consideration is that, increasingly, the battle to attract fashion customers is less about having a name and more about having a memorable customer experience, so even in this highly competitive industry, an online startup has a chance to succeed.
Related: 3 strategies to grow your ecommerce fashion brand in 2021
2. Toys, hobbies and crafts
Soaring unemployment, home learning and increased isolation have led many people to turn to toys or hobbies to fill time, and more than $ 590.70 billion in online spending in 2021 are expected in this sector. In the second quarter of 2020, North American arts and crafts leader Michaels reported a net sales increase of 11.1%, with a 353% increase in e-commerce sales. Across the pond, UK-based British Hobbycraft has reported a 200% increase in online sales since the start of the pandemic. Even as lockdown conditions ease and more people learn the importance of diversifying their capabilities and activities, these trends are unlikely to fade.
3. Electronics and media
This sector estimates its sales at 542.2 billion dollars this year. In May, consumer spending on home entertainment in the first quarter rose 10%, with the biggest gains coming from subscription streaming. Notably, this growth does not include premium video on demand, which Variety described as “an economic and logistical necessity” since the closing of the cinemas.
Related: This is why you need to adjust your ecommerce channel strategy today
4. Nutrition and personal care
Those close sales are expected to reach $ 468.5 billion this year. Many of its products are staple items that need to be replaced regularly, and even before the pandemic, people were showing an interest in paying for quality beauty products. A 2017 CNBC analysis of growth among Amazon product categories showed that luxury beauty items performed the best, at 47% year-over-year.
Another consequence of spending more time at home is that people focus on cooking. That same CNBC analysis ranked the pantry (38%) and grocery store (33%) among the top performers. In a March 2021 consumer survey, 43% of those surveyed said they plan to cook more at home, and 42% of those surveyed in an Experian survey from the same month said they spend more money. money for groceries than before the pandemic. Whether it’s food or personal care, consumables remain a sustainable option for lucrative sales.
Related: 100 things you need to know to be successful in the modern beauty industry
5. Furniture and appliances
The projections rank these collectively in our top five, with $ 362.90 billion in estimated sales. CNBC 2017 figures already ranked furniture (33%) among Amazon’s top product growth products before the pandemic. Now, with people investing in home offices, this market is expected to register a compound annual growth rate of 5% between 2021 and 2026.
Spending more time at home means investing more in its spaces. Mintel reports that home appliances saw a 5.5% gain in 2020 as a result of the pandemic, and furthermore, when it comes to spending, people put their homes first and were willing to pay for it. more convenience in their life, so an ecommerce business in this category can be a lucrative option.
Online shopping will continue to evolve as it becomes our primary means of consumption. Even online retailing of cars and other vehicles falls into the categories of interest, although it may take some time before it makes it into the top five sellers. These markets are definitely the way of the future, so tap into them now for a better chance of success.