2021 E-commerce Trends to WatchConsumer shopping behavior changed because of the pandemic—and many of those changes are here to stay.

2021 Trends to Watch• E-commerce grows on

• Personalization game

• Stay-at-home boom

• Reimagining returns

• Pickups are picking up

• The need for speed

• Shopping small is big

• Sustainability matters

The widespread embrace of online

shopping during the pandemic

unexpectedly accelerated e-commerce

growth by almost two years.

Expect continued e-commerce growth

53% of North American buyers said

that the pandemic has changed the

way they will shop going forward.

“5 Pandemic Buying Habits That Are Here to Stay—According to Shopify Research,” Shopify Blog, September 10, 2020.

“US forecasting shocks 2020: Ecommerce and overall commerce,” eMarketer, December 27, 2020.

Take Action:

Be prepared for a quick increase in online business—revisit your operations from website to fulfillment and consider technology solutions that can help you handle accelerated growth.

The future of shopping will be personalized

“50 Stats Showing The Power Of Personalization,” Forbes, February 18, 2020. State of the Connected Customer, Salesforce, 2020

More online shopping means more opportunities to collect first-party data which can

be used to make the entire customer journey more relevant—even after the purchase.

63% of consumers expect companies to understand their unique needs and expectations.

80% of consumers are more likely to make a purchase from a brand that provides personalized experiences.

80%63%

Take Action:

Personalization is not just for drawing customers in to make a purchase, it should apply to their entire experience including fulfillment, tracking, unboxing, follow-up, and even returns.

The stay-at-home boom will go on for some

“US forecasting shocks 2020: Ecommerce and overall commerce,” eMarketer, December 27, 2020.

Expect continued growth in specific e-commerce categories as we keep on working, learning, and

playing at home.

0

20

40

60

80

100

120

140

160

180

200

Electronics Furniture Health & Beauty Food & Beverage

Online Spending

Expected Actual

Take Action:

Evaluate your inventory and identify products you could creatively position or promote to your customers as convenience or comfort purchases.

Consumer Returns in the Retail Industry 2020, National Retail Federation, December 2020

FedEx Empathy Tools, December 10, 2020

“16 Ecommerce Experts’ Predictions on How Online Commerce Will Evolve in 2021,” eSeller Cafe, December 29, 2020.

“Most shoppers plan on making a return after the holidays,” Retail Dive, December 21, 2020.

Online retailers will stay focused on getting returns rightMaking returns easier is key to creating a frictionless experience for customers.

in goods were returned by shoppers in

2020—18% of total online retail sales.

said “the return process is a complicated, lengthy hassle.”

79%

More than 3 out of 4 shoppers who highly rated their

returns experience with a retailer that was new to them

said they'd shop with them again.

Half of all shoppers said they would not buy from a retailer

if they had to pay for return shipping.

Of consumers surveyed

about returns:

$102 BILLION

77%

Take Action:

Be sure your return policy builds shopper confidence. Make the process easy by including a return label in your original shipment or take advantage of tools like FedEx Returns Technology to create a QR code label for customers who don’t have a printer. Remember, every return is an opportunity to create a repeat customer.

said “paying to ship back returns is a pain point.”

“5 Pandemic Buying Habits That Are Here to Stay—According to Shopify Research,” Shopify Blog, September 10, 2020.

“Click and collect is gaining momentum amid pandemic,” eMarketer, January 10, 2020

Percentage of buyers using curbside pickup:

40% at the onset of the pandemic for safety.

38% plan to continue using it for convenience.

Percentage of Top 500 North American

e-commerce retailers offering curbside pickup:

6.9% in December 2019

Click-and-collect transactions made up

$58.52 billion in sales—15.5% over estimates.

Because an estimated $25 million goods are lost every day from

package theft, consumers are opting for in-store pickup, requesting a

signature upon delivery, and sending packages to delivery centers.

43.7% in August 2020

Curbside pickup and ship-to-store won’t stop

Shoppers have embraced these convenient services and plan to keep using them.

“US forecasting shocks 2020: Ecommerce and overall commerce,” eMarketer, December 27, 2020.

Consumer Returns in the Retail Industry 2020, National Retail Federation, December 2020

Take Action:

Give your customers more peace of mind—make sure they know about FedEx Delivery Manager®. It’s free and they’ll get more visibility and control over when and where their packages get delivered.

Groceries AlcoholEntertainment/

fitnessHome/gardenHome office

1.2Days

2.2Days

Most consumers who choose freeshipping consider delivery in five days to be “fast”

or “acceptable.” However, consumers’ definition of “fast” depends on the category:

2.2Days

2.6Days

2.8Days

Average of all categories: 2.3 Days

Shoppers will always want to get it fast

Expectations of fast delivery times are highest for

groceries, household supplies, and home office items.

“Reconsidering the need for speed,” Pitney Bowes BOXpoll, October 2020.

Take Action:

Evaluate whether your products are shipping at the expected speed or if a different shipping option might be better. Consider services like FedEx Home Delivery® to get your products to your customers every day of the week. Remember, being transparent about delivery timing works in your favor.

Digital options will keep bringing customers closer

14% of all buyers and 27% of buyers aged 18–35 purchased a digital version of something that would normally be done in person.

63% of those who purchased digital experiences said they did so more during the pandemic than at the start of the year.

Businesses will continue to use them for customer loyalty and

acquisition.

Virtual experiences are here to stay

14% of buyers say they will purchase

virtual experiences in the future—the

same as in 2020.

The appetite for virtual experiences is

likely to continue as many consumers

may not feel comfortable returning to

“business as usual,” even as areas slowly

reopen.

“5 Pandemic Buying Habits That Are Here to Stay—According to Shopify Research,” Shopify Blog, September 10, 2020.

Take Action:

Think creatively about virtual experiences you could offer. Anything that resonates with your customers can help build your brand and every positive customer interaction boosts loyalty.

Shopping small is getting biggerConsumers will continue to shop locally and online with small independent businesses.

61% of buyers said they plan to buy

from local and independent retailers six

months from now—significantly more

than those who reported doing so in

the first three months of the pandemic.

61%

“5 Pandemic Buying Habits That Are Here to Stay—According to Shopify Research,” Shopify Blog, September 10, 2020.

This trend is not only here to stay, it’s actually picking up

steam.

66% said that they learned

about local businesses

through recommendations

from friends or family.

66%

Take Action:

Take advantage of the shop small movement by showing your support for small, local businesses in your community. Consider collaborating on promotions and shopping events, too. You can reach new customers and share the marketing costs.

E-commerce is going Earth-friendly fast.

Sustainable online retailing practices

will become a priority and major

brands have already started.

Over half of U.S. consumers are very concerned about the

environmental impact of packaging.

More online shopping means more cardboard and plastic packaging

waste—and shoppers know it.

65% of shoppers want to buy from brands that aim for sustainability.

Consumers are willing to buy more sustainably packaged products—

and pay more for them.

“Sustainability in packaging: Inside the minds of US consumers,” McKinsey & Company, October 21, 2020.

“The Future of eCommerce: eCommerce Trends to Watch for in 2021,” Core DNA, December 21, 2020.

Take Action:

Ask customers to recycle packaging or suggest creative ways to reuse it. Consider sustainable or multi-use packaging, like the Legal Size Reusable FedEx® Envelope or FedEx® Reusable Sturdy Pak. Remember, packing materials are in demand due to the increase in online shopping, so build cost and time considerations into your business plan.

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