In keeping with trends we have seen over the past decade, 2020 has proven to be another record year for online spending, with e-commerce spending up by 30% in the US alone and spending on other online services such as entertainment and groceries up by similar levels.
It seems that brick-and-mortar establishments are becoming increasingly irrelevant in an age where virtually every possible kind of good or service can now be had with just a couple of clicks. If you want to learn more about this record-breaking year for digital spending, read on to find out the essential facts behind the trend.
People Are Spending More
The first and most striking fact is that people are spending much more than in previous years in their online shopping habits. In the US and the UK, households now spend an average of 7% of their entire income online. In addition, the total value of all e-commerce sales around the globe for 2020 is estimated to hit $690 billion, a figure that far outstrips any seen in previous years. People are now only shopping more often online, but spending much more when they do so.
People Are Buying Different Things
Another notable trend in the online spending landscape is the shifting priorities of consumers when it comes to spending. For example, the most popular goods and services purchased online this year include books, which have seen sales skyrocket by around 295%, as well as outdoor sports items, games, and groceries. In previous years, electronics, cosmetics, and apparel were the big market leaders in online shopping, but this is no longer the case.
Spending on Online Gaming is Skyrocketing
Another notable trend is just how much people around the world are now spending on online forms of entertainment, most notably gaming. A recent survey of online gaming fans in over a dozen countries revealed that around 39% are now paying more for their gaming habits. As a result, the popularity of services that claim to help gamers save money when playing online is also likely to grow.
Take for example online casino gaming, which consumers in high-growth markets such as India are now spending more money on than ever before. In order to access free online slots, poker, blackjack, and teen patti, Indian gamers can now consult casino experts that look for the most competitive casino bonuses to help save them money. As spending on all forms of gaming continues to skyrocket, expect such money-saving platforms to become increasingly prominent.
New Products and Services Are Taking Over
Finally, it’s important to note that the online spending marketplace is evolving at an unprecedented pace. Newer types of goods and services are rapidly gaming dominance in the e-commerce market. For example, sales of indoor, affordable loungewear, once a relative niche market, have skyrocketed in 2020, while luxury items such as handbags and dresses have nosedived. People are paying en masse for products and services that were once barely a blip on the radar, such as subscription news sites, e-learning applications, and premium grocery delivery services. Entrepreneurs should take note of these emerging trends.
There are now more than 2 billion online shoppers worldwide. Anyone wishing to engage with this massive market needs to be aware of the trends that are shaping it in 2020.