Top ‘o the month to ya. We hope your ecommerce store saw a lot of success this past St. Paddy’s Day. It looks like the pandemic didn’t tarnish the celebration too much with nearly a third of US consumers celebrating from the safety of their couch.
March concludes a successful first quarter for the ecommerce industry and it’s on track to get even better from here. Experts predict a record-breaking 2022 and companies are rushing to get a piece of the pie. Twitter and Snapchat are among these brands adopting an ecommerce strategy to compete with other social platforms like Facebook. Continue reading to learn more about this recent development in April’s issue of Ecommerce Lately.
Ecommerce Could Reach $1 Trillion by 2022
Since COVID-19 started affecting the world in March of 2020, ecommerce has seen a steady increase. A study from Adobe states that from the beginning of the pandemic through February 2021, $844 billion was spent online. This success can be attributed to the advancement of online marketplaces, ecommerce hosting platforms, and the entrepreneurs who adapted to the difficult times. A perfect example of this can be seen in the first two months of 2021 where US consumers spent an impressive $121 billion. At this rate, along with highly anticipated holiday spending, we may see a trillion-dollar year by 2022.
New Fees For Amazon Sellers
Amazon plans to raise its fulfillment fees starting June 1st. This increase comes at a difficult time for some since the pandemic is still affecting thousands of ecommerce businesses, but Amazon stated, “While many other companies passed along costs through surcharges and fee changes in 2020, we absorbed over $5 billion in COVID-related costs.” Despite the new fees, Amazon sellers can still find success in the coming months, especially during Prime Day.
Ecommerce Fulfillment Tech in High Demand
Flowspace, a fulfillment technology platform, recently received a $31 million investment from Buildgroup. Large investments like this are happening more often as the pandemic has increased the demand for warehousing and fulfillment management around the globe. Flowspace CEO stated, “Our software powers the entire journey of getting an online order to your door.” Fulfillment companies like Flowspace continue to improve the way online merchants complete orders and provide customers with the best services possible.
Twitter and Snapchat Experiment With Ecommerce
“Adapt or perish,” sounds morbid but it’s true when speaking of ecommerce. There’s nothing more detrimental to a company than staying stagnant. The same can be said for social media platforms. One by one, apps like Facebook, Instagram, and TikTok became shoppable and now the other major platforms are following close behind. Not only is Snapchat looking to grab a piece of the action by acquiring ecommerce tech firm, FitAnalytics, but Twitter is testing shopping capabilities as we speak. Soon, everything will be shoppable!
USPS To Get Back On Track But At The Cost Of Sellers
We’ve stated before that the pandemic has had an impact on every industry, but it really took a toll on shipping companies. USPS is among several carriers that had issues creating COVID safety protocols, completing deliveries on time, and keeping up with a huge surge in shipping requests. Although 2020 put USPS through a stress test, it’s getting back on track and plans to “achieve financial sustainability and service excellence.” The full plan can be found in their recent press release but we’re focusing on one aspect: rate changes. It’s unclear what the rates will be, but stay tuned to our Twitter page where we’ll announce it as soon as we hear.
The first quarter is officially over and overall, it has brought a lot of success for our industry. It’s exciting to see ecommerce companies like yours contribute to the record-breaking $1 trillion dollar mark! And, if you’re trying to find even more success, check out our blog. We have tons of quick tips and guides to help you improve the way you sell online. Until then, check back monthly for our Ecommerce Lately publications. We keep you posted on all the latest happenings and industry news!
What updates are you most excited about? Let us know in the comments below.