Hamburg-based secondary market research firm yStats.com has published “Q3 2020 COVID-19 Impact on Global E-Commerce and Online Payments” report, showing movements in global online retail and payments activities. The new publication includes details on how selected verticals and merchants as well as consumers have adapted to the new reality of ongoing COVID-19 restrictions in the third quarter of this year.
Online sales are at all-time highs due to COVID-19
In the Q3 of 2020, as the COVID-19 pandemic lingers in many parts of the world, the whole E-Commerce market continues to evolve. Merchants that are already operating mainly in online, such as Amazon, are recording all-time high revenues, and retailers like Nike and Walmart strengthen their market positions thanks to their online sales channels. This trend is most likely to continue, since according to a survey from August 2020, cited in the yStats.com report, 77% of US consumers are trying new shopping behaviors, while 60% get inspiration from digital channels for online shopping. Regarding the different global E-Commerce markets: Indian, Malaysian and US online retail markets, among others, are still rapidly growing, while China’s, after an impressive year-on-year sales growth through the summer months, sees a slowdown in transaction volumes.
Merchants turn to digital payment solutions due to the coronavirus
Immediate bank transfers (instant payments) are on a rise, and from 2020 to 2025 they are expected to increase at least 5 times in their value. However, the US market is most likely not going to top the growth rankings with its 8% share of global instant payment transaction value expected in 2025. Meanwhile, brick-and-mortar shops recovering from the recession resulting from the coronavirus restrictions are using omnichannel solutions: from 2020, USD 2 billion in smart checkout sales are forecasted to skyrocket to USD 387 in 2025, according to a report cited in the yStats publication. This change is warmly welcomed by consumers, as for example about 7 in 10 of U.S. consumers surveyed in July 2020 would feel safer in stores offering no-contact payment options. This implies a definite positive impact on revenues for the retailers who will further subscribe to digitalization.
The health crisis requires rapid action from retail sectors
During the pandemic, those verticals that could react quickly to the new reality and offer their services online profited the most. One sector that moved quickly to digital interaction was healthcare. According to an early August 2020 survey cited by yStats.com, 16% of U.S. consumers used remote medical services for physical health for the first time since the start of the pandemic. Nevertheless, in Q3 of 2020, for other verticals, such as jewelry and vehicle sales, post-COVID net intent figures for expected spending by consumers in the U.S. were still negative and stood at -47% and -43%, respectively. Furthermore, the travel industry may not recover until 2023.