As the holiday season approaches us, it is clear to everyone that the stores are going to be packed. Well maybe not physically, but virtually this year. With rising cases of the Coronavirus in the U.S., Brazil, and India, shoppers everywhere are staying safe in their homes and resorting to e-commerce to spread the holiday spirit. Retail websites will be put to the test with the high volume of shoppers to see whose advertising teams produce the most efficient and appealing designs. It will be interesting to see the differences in revenue between companies that thrive with in-store shopping as opposed to online.
Overall, Forrester has predicted an online retail growth of 18.5% this year in North America. That is with a prediction of a slight drop in overall retail revenue from last year that includes in-store and online shopping. This large jump in online retail is more than likely stemmed from a mix of things all pretty much looping back to the Covid-19 pandemic. With less money spent on travel and large gatherings for the holidays, consumers across the globe are expected to spend some of that extra dough on some more gifts to conserve the holiday cheer.
With Brazil having the largest number of Catholic Christians in the world, the month of December leading up to the birthday of Jesus is a very important one to them. At the same time as this holiday season, the pandemic has reached a spike in the country. With that being said, some of the larger e-commerce companies in Brazil are expected to have enormous jumps in revenue and sales this month including Mercado Livre, OLX, and of course, Amazon Brazil.
Similar to Brazil, the U.S. will also experience a great rise in e-commerce than in previous years. Already in the last 4 years, e-commerce sales in the U.S. have increased by about 34%, and that completely disregards the ongoing pandemic that just so happens to be peaking for the second wave across many states. Without question, Amazon will keep the number one spot for e-commerce sales this year but which company will take the second spot? Potential companies in the race include eBay, Walmart, and Etsy, with Best Buy and Target trailing at the predicted 6th and 7th spots. This trend may change this year, however, as Best Buy and Target usually have a large amount of in store customers that might not make it out of the house this year, causing online revenues to skyrocket.
Overall, whether it be in the U.S., South America, or across the world in Asia, it is clear that the sector of e-commerce has been fueled to grow even more rapidly than before due to the Covid-19 outbreak. With the holiday season right around the corner, this will be a good test to see which companies fare well and which ones are not ready for the boom in online shopping