Almost three quarters (74%) of Shopify owners experienced either a boost or no change in sales during 2020. One third of Shopify sellers saw in increase in revenue by at least 40% since the Covid-19 outbreak began.
These were the findings of a survey conducted by the Helpcentre App team. The survey asked 160 Shopify vendors how the Covid-19 crisis has impacted their online business. It also asked how the vendors feel about the shape of their business moving into 2021.
Shopify Merchants Sales Boost 2020
The survey found that almost 74% of Shopify store owners experienced an increase in sales or no change in sales during the pandemic. At least 40% of the respondents said they were able to increase revenue since the start of the health crisis. Around 22% of vendors who registered growth, reported an increase in revenue of up for 60%. Just over 5% reported no lower than 80% revenue growth. 12% experienced an increase in revenue of 100%.
On a less positive note, 2020 did bring losses to some Shopify merchants. Around 27% of those surveyed said the year has had a negative impact on sales. Around five out of ten of those who experienced a loss in revenue reported a decline from 20% to 60%.
Positive Projections for 2021
Despite some inevitable negativity, Shopify vendor optimism looks set to continue in the New Year. More than 80% of vendors on Shopify believe their sales will grow or even boom in 2021.
Changing Consumers Habits
The findings of Shopify’s survey are important to the wider small business community. It confirms how consumer habits have evolved in a year of intense disruption and change. The demand for purchasing goods online has soared since the onset of the Covid-19 crisis, subsequently offering opportunities for small businesses.
The Best Fulfilment Processes
Consumers now expect online shopping and want the best possible fulfilment process when shopping online. Merchants should therefore be mindful about every aspect of selling online, from how they market their products to offering fast delivery.
The researchers commented on the escalating demand for ecommerce and the opportunities it presents to small businesses and entrepreneurs.
“Although it is difficult to predict when everything will get back to normal, one thing that has significantly changed during the pandemic and, likely, for good, is consumer habits. Not only that, with an increased demand for online shopping, more time on their hands due to recurring quarantine in some parts of the world, and basically unlimited access to any relevant information, customers are not lowering their expectations for businesses. It is actually the opposite – as the challenges continue to raise, customer expectations follow,” said the authors of the report.
Convenience, Business Transparency and ‘Quick Reflexes’
As the Helpcentre App researchers’ note, the Covid-19 crisis has elevated consumer expectations for convenience, business transparency, and “quick reflexes”. Small businesses selling online should proactively observe evolving customer expectations. By offering convenience, business transparency and “quick reflexes”, such as responding to customer queries in a timely manner, online vendors will be more competitive in an increasingly saturated marketplace.
More in: Coronavirus Biz Advice, Small Business Statistics