2021: The E-Commerce Boom

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The e-commerce sector has hit an all-time high, with a huge increase in online sales during 2020, largely as a result of the Covid-19 pandemic - online sales have increased by almost 30% in just 12 months.

According to a survey by Engine, grocery e-commerce has soared, as have online purchases of medical supplies, baby items, cleaning products, toys and games, electronics, wellness products, DIY tools, fitness equipment and clothing.

E-commerce products

© Polina Parm / Shutterstock.com

In the UK, the e-commerce market is worth an estimated £200 billion. A study by Digital Commerce 360, in January 2021, revealed 60% of respondents said the Covid-19 spikes had deterred them from going to high street stores.

A massive 71% of consumers said they felt unsafe testing and buying beauty products in stores during the pandemic, with 62% saying they wouldn't try on clothing in a changing room. Around 59% of consumers had bought more gifts online than ever before during 2020.

 

Changing consumer trends

The massive shift in consumer behaviour leading to the current e-commerce boom has created an exceptionally high demand for warehousing space. In fact, due to the soaring demand for online sales, some buildings that have been closed due to Covid are now being snapped up for warehouse space to cope with the extra orders.

A number of online retail companies are doing particularly well, with Amazon's UK site ranked the number one e-commerce site in the country, attracting 220.7 million visitors a month. This is followed by eBay's UK site, which attracts 146.3 million visitors per month.

The British online fashion and cosmetics store Asos has an estimated 33.7 million monthly visitors, with electronics giant Currys PC World attracting 26.9 million people every month. Currys PC World was originally a computer store, but it has taken advantage of the e-commerce boom by branching out into many other household electronic items.

Now selling televisions, cookers, washing machines, cameras, laptops and mobile devices, the retailer has online and offline stores and offers free home delivery, having grown and adapted to the new market trends. The brand ranks ninth in the world in the computers, technology and consumer electronics category.

The e-commerce market continues to grow, with research suggesting people's shopping behaviour has changed forever. Even after the pandemic ends, consumers who have grown accustomed to shopping online will continue to do so, according to a survey of 3,700 shoppers, entitled "Covid-19 and E-commerce".

It indicates changes in online shopping activities are likely to outlast the pandemic as a result of the "unparalleled growth" in e-commerce, which is "disrupting retail frameworks" as we know them.

 

Extra warehouse space

For customers who have changed their shopping behaviour and moved online, the sites most able to cater to their needs will retain their spending. Canny businesses have adapted to meet consumer demands by investing in extra warehouse space to house more goods, so they can be despatched to online customers without any delays.

High street stalls, retail stores in shopping malls and even some licensed wedding premises that have closed down amid the pandemic are now being used as extra warehouse space. They have been snapped up by companies whose online customer base has expanded rapidly.

The UK's top e-commerce site, Amazon UK, has increased its warehousing capacity by 20% to reflect the growing demand for online retail therapy.

Before the pandemic, e-commerce and third-party logistics companies had an equal share in warehouse space. Now, e-commerce has taken over a major share of warehouse demand. This is a trend that's happening not only in the UK, but all over the world.

The bulk of the new warehouse space is going to companies who offer same-day or next-day delivery to ensure they can fulfil their customer obligations. The average demand is for larger warehouse premises of at least 400,000 sq. ft.

Organising your warehouse, especially if you have particularly large premises, is paramount to ensure orders are completed and despatched on time. If you bulk-buy stacking and nesting plastic containers and open-fronted and order-picking containers from Solent Plastics, you will be able to organise your warehouse operations to run like clockwork.

Call us on 01794 514478 or email sales@solentplastics.co.uk for further details on our wide range of plastic storage solutions.
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