There has been so much discussion around the future of commerce and the impact of the pandemic on shopping behaviours. Will shoppers want to go back to traditional shopping in-store once lockdown rules across EMEA change or have their habits changed completely to purely online? Two news stories this week may signal the move more to shopping online. Amazon announced their quarterly revenue this week with sales jumping 44% to $108.52 billion because of their ecommerce, cloud computing and advertising segments with online store net sales of $52.9 billion and Amazon Web Services net revenue of $13.5 billion. In addition, Boohoo reported a 41% rise to £1.7 billion in full year sales.
So what does this tell us? The rapid increase in the amount of time consumers have spent online during the pandemic is translating to sales as they have become used to the ease and variety at their fingertips. Take the fact that 53% of UK consumers spend longer than 15 minutes casually browsing online looking for products compared to 48% who spend longer than 15 minutes doing so in-store.
However, one thing Boohoo and Amazon do well is put customers first by creating a frictionless customer experience and journey from the design of the platform to fast delivery options. Amazon even announced this week that it will beef up its publisher partnership with Twitch providing their customers with premium Twitch channels with Rolling Stone as well as offer the choice to watch things like NFL Thursday Night Football on Twitch or Prime Video.
Ultimately it's clear that consumer habits have changed. What is still unknown is the permanent effect of that on commerce. Will commerce go totally online, back to in store or hybrid? For now, marketers and brand need to continue to be flexible and focus on developing experiences and campaigns that put the customer first.
The increase was driven by each of Amazon’s ecommerce, cloud computing and advertising segments, with online store net sales of $52.9 billion and Amazon Web Services net revenue of $13.5 billion each topping estimates. The online shopping giant also signalled this strength was set to continue into the current quarter.