Digital shopping expenditures may soar to a staggering $1 trillion this year, as per Adobe's prediction.
The COVID-19 pandemic has significantly transformed the retail landscape, leading to a surge in the usage of Buy Online, Pick Up In Store (BOPIS) and Buy Now, Pay Later (BNPL) services.
The popularity of BOPIS has grown as consumers seek ways to avoid shipping delays and reduce delivery costs, while maintaining the benefits of in-person transactions. This omnichannel fulfillment method, which merges online ordering with physical store pickup, has become a crucial tool for retailers, aiding them in managing inventory more effectively and providing faster service.
BNPL services, on the other hand, have surged in popularity by offering flexible payment options during financially uncertain times. Shoppers have become attracted to spreading out payments interest-free, which has supported higher average order values and conversion rates for ecommerce merchants.
According to the Digital Economy Index report by Adobe, e-commerce spending in 2021 is expected to grow between $850 billion and $930 billion and reach $1 trillion in 2022. This growth is driven by technology integration, mobile shopping, and evolving consumer preferences for flexible and frictionless purchasing options.
The global eCommerce platform market is forecasted to grow from USD 9,078.2 million in 2025 to USD 16,506.9 million by 2030, at a CAGR of 12.7%. The U.S. e-commerce market is expected to reach USD 1.25 trillion in 2025 and grow at a CAGR of 10.71% to USD 2.08 trillion by 2030, with mobile commerce driving much of the growth.
The number of installment payment players competing for market share has increased due to more consumers using BNPL options. Transactions using BNPL services are 18% larger than orders placed with other payment options, according to Adobe. Notable companies like PayPal and Shopify have started offering installment payments.
As of December 2020, 40% of retailers offer BOPIS, an increase from 25% in 2019, according to a report from NewStore. Interestingly, the pandemic has caused a blending of work life and home life for many people, leading to an increase in BOPIS usage during work hours.
However, the long-lasting nature of the increase in services like curbside pickup and BOPIS is still uncertain. The report from NewStore does not provide details about the industries or specific companies that contributed to the increase in BOPIS. Similarly, the report does not provide information about the demographics of consumers who prefer BOPIS or the industries that offer this service.
The Digital Economy Index report by Adobe does not provide details about the industries or specific companies that contributed to the e-commerce growth. Despite this, the report does reveal that 30% of online consumers prefer BOPIS or curbside pickup over standard delivery.
The boom in BOPIS and BNPL services indicates that retailers and platforms enabling seamless online-to-offline fulfillment and flexible payment methods will remain pivotal to capturing future market expansion. These trends suggest that the retail landscape will continue to evolve, driven by consumer preferences for convenience, flexibility, and contactless shopping options.
[1] Global eCommerce Platform Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Application (Retail, Travel & Tourism, Healthcare, BFSI, IT & Telecommunications, Others), By Region, And Segment Forecasts, 2021 - 2030 [2] E-commerce Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Application (Retail, Travel & Tourism, Healthcare, BFSI, IT & Telecommunications, Others), By Region, And Segment Forecasts, 2021 - 2030 [3] U.S. E-commerce Market Size, Share & Trends Analysis Report By Application (Retail, Travel & Tourism, Healthcare, BFSI, IT & Telecommunications, Others), By Device (Desktop, Mobile), By Payment Method (Credit Card, Debit Card, Digital Wallets, Others), By Region, And Segment Forecasts, 2021 - 2030 [4] U.S. Mobile Commerce Market Size, Share & Trends Analysis Report By Application (Retail, Travel & Tourism, Healthcare, BFSI, IT & Telecommunications, Others), By Device (Smartphones, Tablets), By Payment Method (Credit Card, Debit Card, Digital Wallets, Others), By Region, And Segment Forecasts, 2021 - 2030
- The surge in online shopping, driven by the pandemic, has led to significant growth in research and development of AI-powered e-commerce platforms that aim to provide seamless and contactless shopping experiences.
- To stay competitive, finance and technology companies are investing heavily in research to develop new business models, particularly in the areas of Buy Now, Pay Later services and Buy Online, Pick Up In Store solutions.
- As the economy adapts to the new normal post-pandemic, it is expected that the trend of integrating technology in retail, such as the adoption of AI, BNPL, and omnichannel fulfillment methods, will continue to shape and transform modern business landscapes.
