Mastercard’s Recovery Insights highlight the notable shift in consumer spending from brick-and-mortar to online retail during the last year.
With consumers staying at home due to the pandemic, more than $900 billion was spent on online retail channels in 2020. Mastercard estimated that out of every $5 spent on retail in 2020, roughly $1 went to ecommerce.
Around 20-30% of the consumer spending in 2020 moved from offline to online, where it is expected to stay. The study further estimates that 70-80% of the grocery ecommerce surge would remain, as consumers that formed new habits during the crisis would likely keep them.
Because of this shift to online shopping, consumer ecommerce spend grew around 25-30% YoY between March 2020 and February 2021. Mastercard’s Bricklin Dwyer said, “Our analysis shows that even the smallest businesses see gains when they shift to digital.”
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