E-commerce will slow before increasing in 2022 as sales are at an all-time high after the coronavirus pandemic boosted years of growth in just weeks, according to key takeaways from a Shopify report.
The growing competition in e-commerce between wholesalers, large retail brands, and products typically not bought online, are increasing the cost of acquiring customers, according to trends listed in the report. This competition is causing ad costs to skyrocket and niches that traditionally have not been so competitive, are becoming more so. Product categories such as household goods, health, and personal care are leading this change.
Many online stores are not able to provide a high level of customer experience like top brands.
Another trend, according to the report, is that older shoppers have moved online and a Shopify survey of 11 markets showed that 84% of consumers shopped online during the pandemic.