Online Shopping Declines, a First Since COVID
When the pandemic started two years ago, people took heavily to online shopping. Some of it was just convenience. Businesses were closed and the internet was an easier way to get essential products. Some of it was safety. People didn’t think it was wise to go to physical stores, so online shopping allowed them to spend without physically being near anyone else. Some of it was also just that people were stuck at home and they were bored. Shopping was an activity they could still enjoy, or they could shop for other items to pass the time — musical instruments, video games, etc.
In any case, e-commerce soared to record levels. Now, for the first time since those numbers started climbing, they are beginning to decline. This hasn’t happened in years, so why is it happening and what will it mean for your online store?
Two Main Reasons for Online Shopping Decline
The first reason that this is happening is that many of the pandemic restrictions have been lifted. Businesses are open. People feel safer shopping in person. While the change to online shopping may be permanent for some, this shows that others were just using it when they had no other choice. They would prefer to shop in person and they’ll do it when they can.
The second reason is that the United States is potentially headed for a recession. The cost of everything has gone up dramatically in the last few months. This means that some people are saving more money, rather than shopping, in anticipation of financial trouble in the future. It also means that others are now forced to pay more for essentials like food or gasoline, so they have less money left over. Wages have not even come close to keeping up with inflation, so consumers have to make hard decisions about what to buy.
How Will This Impact You?
If you’re an online retailer, this could have an impact on your sales. The market is getting more competitive, which means that you need to know what you can do to attract more traffic and make more conversions. In Google results and on social media, your company has to stand out from the competition. We can help you do that here at Content Customs.