E-commerce guide to help merchants maximise sales during upcoming holiday season

Over the past year, social distancing has led to a dramatic boom in online shopping worldwide, with e-commerce sales hitting a new high during last year's holiday season which began as early as October. Subsequently, global digital revenue grew 50 per cent year-over-year to US$1.1T (S$1.48T) in November and December 2020.

The strong demand has spilled over into 2021 with a substantial increase of 14.25 per cent from US$4.28T in global e-commerce retail sales last year, and the upcoming year-end period looks set to be another blockbuster season for merchants. Notwithstanding the increased opportunities, businesses are facing increased competition in the e-commerce space as retailers - not just local, but worldwide - seek to enlarge their slice of the market pie.

However, the prospects are promising for businesses that prepare in advance, with a well-crafted strategic plan to capitalise on these opportunities.

Staying ahead of consumer trends and understanding shifts in buyer behaviour is critical, particularly as retailers begin to map out their strategies to maximise sales during the second holiday season since Covid-19 emerged.

Aligning inventory plans with emerging shopping trends will be key. Another good move will be to double down on digital engagement such as reallocating resources from offline to digital channels, or implementing a social commerce strategy.

Merchants should also aim to have their holiday season campaigns tested and ready to launch by the beginning of October, in order to cater to what is likely to be an early start to the holiday sale season.

To stand out from their competitors, businesses need to get personal to deepen consumer engagement and loyalty. But how can businesses get started?

PayPal's 2021 Digitize and Thrive Report dives into five key holiday readiness tips to help merchants create a personalised experience for online shoppers - from gathering customer data, to leveraging these insights to refine the digital marketing strategy, provide personalised promotions and deliver targeted communication.

PayPal's report offers further insights into the pandemic-driven consumer behaviours and outlines key trends. The high volume of consumer spend in the wellness, physical and outdoor activities sectors prove that maintaining mental and physical health remains a priority among consumers. Fashion and luxury goods are seeing a demand uptick, which shows that shoppers may be looking to revamp their wardrobes as they gradually return to in-person activities.

Minimising friction in online transactions

With online shoppers spoilt for choice and consumer expectations rising, it is ever more important that businesses provide a frictionless purchase experience. Any interruptions to a customer's shopping journey can increase the risk of exits, bounce rates and cart abandonment. A one-second delay will cause conversion to drop by 7 per cent, which shows that even seemingly minor issues can significantly impact the bottom line.

The PayPal report provides tips on how to minimise purchase friction. It also highlights an often overlooked yet important point - shoppers tend to pull out at the checkout stage if their preferred payment option is not available. Increasingly, shoppers desire choice and flexibility. Keeping this in mind, businesses should seek to offer a variety of payment options - including Buy Now, Pay Later (BNPL) payment schemes (where available), digital wallets and other alternative payment methods - to facilitate a seamless checkout process.