Before the pandemic, e-commerce was already on the rise, showing a steady and measured pace of development.
The 2020 pandemic led to economic changes, including an increase in the financial turnover of online commerce. Due to COVID-19, many companies switched to online sales to avoid bankruptcy.
Now, it can be confidently said that the pandemic boosted the development of e-commerce.
At the same time, once the restrictions were lifted, many customers returned to offline stores. However, it was already clear that offline companies that had invested heavily in transitioning to online commerce were unlikely to leave this niche. Unsurprisingly, competition in the market increased. Marketplaces and e-stores did not want to lose their customers from the online segment. Therefore, these companies tested and developed new ways to improve online stores and retain their customers. As a result of competition in the post-pandemic online marketplace, new trends have emerged that contribute to the further development of e-commerce, making online shopping more convenient, faster, and personalized.
Key E-commerce Trends After the Pandemic
- Increasing Role of Mobile Commerce
Every year, more and more consumers are making purchases through smartphones and tablets. This has led to the development of mobile apps and the optimization of websites for mobile devices. While Walmart had an existing mobile app before the pandemic, the company significantly expanded its capabilities and launched new features to enhance the user experience. For instance, they introduced the Walmart Grocery app, which was later integrated into the main Walmart app to provide a seamless shopping experience for both groceries and other products.
- Development of Omnichannel Strategies
Businesses are combining online and offline channels to provide customers with a seamless shopping experience. This includes approaches such as “Click-and-Collect” and the integration of digital technologies into physical stores. For example, Home Depot allows customers to order products online and choose whether to have them delivered to their homes or pick them up in-store. Home Depot has also implemented a system that lets shoppers check product availability in real-time in stores.
- Growth of Personalization and Data Usage
Companies are actively using big data analytics and artificial intelligence to personalize offers and improve the customer experience. This allows them to offer products that match each buyer’s individual preferences. An example is Stitch Fix, an online clothing selection service that uses data analysis and artificial intelligence to create personalized style recommendations. Clients fill out questionnaires about their preferences, and algorithms and professional stylists select individual sets of clothing and accessories for them.
- Increasing Popularity of Virtual and Augmented Reality (VR and AR)
These technologies are used to create a more interactive and engaging shopping experience, such as virtual fitting rooms and 3D product tours. Nike developed the Nike Fit app, which uses AR to accurately measure customers’ foot sizes, allowing for the best shoe size to be chosen, reducing the likelihood of returns and increasing customer satisfaction. L’Oreal uses the L’Oreal Makeup Genius app, which employs AR for virtual makeup try-on, allowing users to try different cosmetic products and looks in real-time using their device’s camera.
- Development of Voice Shopping (V-shopping)
Voice shopping, supported by voice assistants like Alexa, Google Assistant, and Siri, is becoming increasingly popular. Users can search for products, add them to their cart, and make purchases using voice commands, making the process even more convenient and fast. For example, Instacart users can use Google Assistant to add products to their shopping lists and place orders, simplifying the shopping process and saving time.
- Growth of Livestream Shopping
Livestream shopping, or live broadcasts with the ability to purchase products in real time, is becoming increasingly popular. This approach combines elements of traditional television and modern social media, allowing brands to showcase products, answer customer questions, and process orders instantly. An example is Taobao Live, a platform owned by Alibaba, where hosts demonstrate products, conduct reviews, and answer viewers’ questions in real time, making the shopping process interactive and engaging.
- Using Social Channels for Shopping (Social Commerce)
Social networks like Instagram, Facebook, TikTok, and Pinterest are introducing features that allow users to make purchases directly through posts, stories, and live streams. Social commerce increases customer engagement, improves the shopping experience, and stimulates impulse buying. For example, Pinterest offers features like “Shop the Look” and “Product Pins,” which allow users to buy products seen on the platform. Brands like Wayfair and Anthropologie use Pinterest to showcase their products and simplify the shopping process for users.
- Development of Contactless Delivery
The pandemic accelerated the adoption of contactless delivery methods to minimize physical contact between couriers and customers. Companies offer options such as leaving orders at the door or in special safe zones, using drones, and robotic delivery systems. Starship Technologies, for instance, develops and uses small autonomous robots to deliver goods over short distances, increasing safety and convenience for customers.
- Increasing investments in SEO and Digital Ads.
In the post-pandemic era, e-commerce companies are striving to stand out and retain customers amidst increased competition. Businesses are heavily investing in SEO and digital advertising to improve their online visibility.
The changes in cost-per-click (CPC) rates for Google and Facebook Ads reflect this competition.
In 2019, the average CPC for Google Ads was $0.69, and for Facebook Ads was $0.39 Business Of Apps
During the pandemic in 2020, Google’s CPC dropped to $0.49, while Facebook’s remained stable Business of Apps
By 2024, Google’s average CPC rose to $3.30 WebFx, and Facebook’s ranged from $1.60 to $1.70 Business Of Apps, WebFx
These shifts illustrate how companies are adapting their marketing strategies, increasing their digital ad spending to capture consumer attention and boost their e-commerce presence.
Not only was CPC affected by COVID-19, but SEO competition also intensified significantly.
Before the pandemic, SEO competition was moderate, with businesses focusing on optimizing product listings, enhancing mobile and desktop experiences, and leveraging search trends to meet customer expectations.
During the pandemic, SEO competition intensified dramatically as businesses scrambled to capture the surge in online traffic, heavily investing in digital marketing to optimize their websites and enhance user experience.
Post-pandemic, the SEO landscape continues to evolve, with businesses maintaining a strong online presence and adapting to new consumer preferences such as contactless delivery and curbside pickup. The competition remains high as companies strive to retain the market share gained during the pandemic, making SEO a crucial component of their business strategies.
The graph above illustrates the SEO Competition Index before, during, and after the COVID-19 pandemic. The index is measured on an arbitrary scale from 0 to 100, representing the intensity of SEO competition during these periods.
- Pre-Pandemic: The SEO competition index was moderate at 50.
- During the Pandemic: The index surged to 90, indicating high competition as businesses pivoted to online channels.
- Post-Pandemic: The competition slightly eased but remained high at 70, reflecting the sustained importance of e-commerce and digital presence.
This trend demonstrates the significant impact of the pandemic on SEO strategies and the lasting increase in competition within the digital marketplace (The State of eCommerce: Pre- and Post-Pandemic (2022), E-commerce in the time of COVID-19, Ecommerce and SEO: Past, present, and post COVID-19).
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- Use of Artificial Intelligence (AI)
AI has started to play a key role in e-commerce, from analyzing customer behavior and automating processes to creating chatbots and virtual assistants. Artificial intelligence helps improve the user experience, increase operational efficiency, and offer more accurate recommendations. Sephora uses AI chatbots on its website and mobile app to help customers find the right products, provide skincare and makeup advice, and answer questions about product availability and order status. Zara uses AI to manage inventory, predicting demand for various products and distributing them accordingly across its stores and warehouses, helping to reduce storage costs and avoid shortages or overproduction.
Conclusion
The pandemic in 2020 has transformed the face of e-commerce and brought with it many new trends, which can permanently change the way we shop. Mobile commerce, omnichannel strategies, personalization, virtual and augmented reality, voice and livestream shopping, social commerce, and contactless delivery allow us to shop faster, easier, and more personalized. These advancements result in higher customer satisfaction and loyalty. Companies developed these trends to stay competitive and retain their customers in the online segment. Those who manage to adapt to changing conditions and invest in technology will pave the way for the long-term development of e-commerce.