Real life felt so different when the COVID-19 pandemic officially ended, and almost everything changed, especially the way we spend our money, where, and how we engage with digital platforms. Some of the changes in our behaviours are more obvious than others, so let's explore some trends in spending habits and how the online shopping sector has grown in the last couple of years.
How Spending Habits Shifted
Re-evaluating the ways we shop and spend our money was not a decision we had to make naturally. Most of us were forced to opt for online alternatives because those were the only ones available. According to a Statista survey published in Dec 10, 2024, approximately 70 percent of the surveyed consumers declared that since 2022, they are now shopping more online compared to the pre-pandemic era.
So, we know for a fact that almost all of us, at an international level, started to shop online more. Actually, we can look at the International Trade Administration study and see how, after the 2022 dip, the market pivoted during the lockdowns. The global e-commerce revenue in 2022 was at US$3,748bn and quickly raised to US$4,284bn in 2023. Since then, the market has continuously grown year by year, with a steady 13% increase in revenue per year.
So, 70% of us are spending more money online, and this behaviour also seems to remain unchanged for the following years. Are you curious to see what these new habits were implemented after the pandemic era?
1. We focus more on finding online discounts while prioritising essential goods.
2. People discovered that online shopping helps them discover more health and wellness products.
3. Buying fitness equipment, organic food, or mental health resources has become a habit for consumers that were not into home exercising.
4. People used to count on online shopping for their experiential purchases. Nowadays, consumers tend to be more mindful and treat the e-commerce environment more seriously.
Digital Services and Subscriptions
Trying to avoid crowded markets, spaces, and packed small boutiques, many consumers opted for subscription packages for the first time in their lives in order to satisfy their needs. Since online shopping was growing so fast, the acquisition of an Amazon Prime subscription felt convenient.
People spent so much more time inside, and they needed entertainment. Streaming services exploded, gaming flourished, and even meal kits services saw an increase in adoption. As you can probably imagine, all forms of entertainment got more attention post-pandemic. Digital casinos are enjoying their best era with 30 free spins no deposit bonuses, cash incentives, and all kinds of intriguing offers being promoted every single day to all players in the world.
It was also the perfect time for marketers to experiment with their new social media strategies and gain some e-commerce traction using platforms like Instagram or TikTok. We estimate that the post-pandemic years have contributed a lot to the development of innovative features like the TikTok shop, live reel shopping, and so on.
Positive Trends: Convenience and Safer Payments
Consumers are now more inclined to just shop online only because it is way more convenient, transparent, safe, and they have access to a far more varied offer. Together with the liberty of paying online, with card payments being more safe than ever, it creates the perfect context for consumers to focus more on searching for the products they wish to buy.
But digital payments are not the only sector we would love to cover. Nowadays, people are more inclined to use contactless payments or just use their phones and digital wallets to handle transactions. And because users require better systems when it comes to how they pay, companies have started investing in developing user-friendly apps and omnichannel experiences to increase brand loyalty or even customer satisfaction.
Concerns: Privacy and Overspending
In their permanent search for entertainment and the continuous urge to spend money online, the most vulnerable component is privacy. With us being more present in the online environment, it only makes it hard for companies to keep our data safe and guarantee the highest level of cybersecurity.
You would think that thieves, hackers and cyberattacks are the main reasons why your online data is not safe any more. But, a Pew Research Center study from 2023 shows that 70% of Americans are actually concerned about how social platforms, streaming platforms and big companies in general handle their data.
On the other side, we love to spend time and money online. Actually, it is concerning how this habit turns into impulsive decisions. Digital marketing evolves, acting like a machine that perfectly knows how to trigger our emotions, fooling us into buying things we do not need. Now that they know we are spending so much more time online, companies are investing astronomical budgets promoting their products.
Impulsive consumers will continue to spend their money, leading to financial strain. These mistakes lead to finance educational programs, apps and gurus to appear. Every shift in our habits or online behaviour will only lead to a new product being launched.
In The End
How funny it may sound, the pandemic was only a boost for how capitalism was about to evolve anyway. It forced us to adopt a more comfortable lifestyle without even realising it much quicker. Are you one of the people who shifted towards the online environment in the last three to four years? Were you even aware of it?