2020 has been great for the eCommerce businesses as can be seen in the sales that exceeded the $4 trillion mark. Several businesses turned to online platforms during the pandemic which made the ecommerce market more overcrowded than ever.
With this, the newbies entering the ecommerce market have increased drastically which has pushed the existing ones to saddle up in the competition. The traffic growth rate of ecommerce sites has reached 30% and the industry players look out for opportunities where they can get a share of the ecommerce boom and strengthen their position in the market.
The traditional generic tips for growing the ecommerce business are valid today also but in order to benefit from the online shopping scenario, you are required to look at the tailored solutions that are suitable to grow the market share.
Here we will talk about the latest ecommerce trends and focus on the channels and tactics that can help in driving growth in the US market. Depending in the insights taken from the various ecommerce categories here are some of the key points that were revealed:
- What are the key traffic drivers that drive the fastest-growing ecommerce players?
- Estimate of conversion rate; current market positions, growth trends; and
- Ways in which you can grow traffic within the new ecommerce market scenario.
The global market has been soaring high this year and there were several ecommerce categories that benefited from the global lockdown and the issues faced during the pandemic. These have also survived the high economic uncertainty.
By focusing our attention on the biggest winners in the US ecommerce market, three out of the all ecommerce categories have shown immense growth in the past year. These include the food & groceries secto, garden & home, and outdoors and sports.
With this, it is easy to analyze that the pandemic has played a huge role in the growth of the e-commerce sectors especially the ones that were operating from home, shelter places and the orders that were received during the lockdown. During the pandemic there was an immense boost in the products belonging to these categories.
Also, by diving deep into each of the categories, it was easy to spot a growth trend which often evolves every year and therefore it is worth dissecting the major categories that are leading in the ecommerce market.
Which are the fastest-growing brands?
Before we start analyzing each category based on their traffic-generation strategies, we will focus on the key players in each of the above-mentioned categories in the US and also throw light on the visitor count trends and the market position of the category leaders.
Market Trends in terms Traffic Seasonality
By analyzing the three-year traffic volumes for the ecommerce niches, it is easy to ensure a strong growth trend that has only grown during the pandemic.
As per the market demand logic, there was an increase in the number of visitors during the shopping season especially during the winters that goes on from October to December.
Even after the second wave of COVID and governments continuing to perform stimulus checks on the people, there was no impact on the online behavior of the consumers.
Shifts that Occurred Among the Top Market Players
Top five players in the ecommerce niche, Garden & Home include: Lowe’s, Home Depot, and Menards that are counted among the big box stores. However, there was a rapid growth in the largest US-based furniture seller Houzz and Wayfair over the past year.
When it comes to the groceries and food sector, Instacard was among the top winners and showed 100% traffic increase during the pandemic. The food delivery brand went from $17 billion to $30 billion in a single month itself.
Sports & Outdoors
Sports & outdoors are the fastest-growing companies that are mostly concerned with gear and outfits. Despite the gyms closing down across different parts of the world, people shifted to playing outdoor games and opting for activities that involve some in-house action and ways in which you can ensure to keep a healthy routine.
Nike is a leader when it comes to garnering traffic in this sector but Rei emerged closed enough to it and was able to garner 52% traffic.
What are the best ecommerce practices?
The majority of site visitors come from direct searches while over 65% of them know that the brand that they are willing to purchase from Garden & Home or Outdoor categories make up to 50% of the total traffic.
20% of the people prefer to surf the web when they want to search for a brand making it the best source for site visits.
Referral traffic is also among the most popular traffic sources across three different sectors and garners an average of 12% site visitors through referrals.