Luminati Networks, in collaboration with QuickLizard, has released data showing a significant change in the way consumers are purchasing goods globally as a result of the COVID-19 pandemic. Notably, electronics, grocery items and pet supplies saw some of the highest rates of increase year-over-year (YoY), while less essential items like photography equipment saw a decrease in sales over the same period. The data highlights that more customers than ever before are shopping online including senior citizens, who have traditionally preferred physical retail options, and are now using e-commerce at a rate 15 percent higher than the same time last year.
The data also shows that more retailers are rolling out online shopping options for the first time, which is changing the competitive landscape and giving smaller retailers that embraced e-commerce early in the pandemic the opportunity to succeed long-term. The shift to online shopping will likely persist even after social distancing measures are relaxed, as governments will be slow to reopen their economies and consumer anxiety of large crowded spaces will persist until a vaccine is found.
As compared to April 2019, the following e-commerce trends have emerged since COVID-19 was declared a pandemic, measured as an increase or decrease in sales revenue:
- Electronics sales – including IT equipment like tablets and laptops – have increased 900 percent YoY, caused in part by the shift to remote working and education.
- Cooking appliances have seen a 400 percent increase in YoY sales, with bread machine sales in the US increasing 500 percent YoY.
- Online grocery sales increased between 200 and 800 percent YoY, with the United Kingdom at a 500 percent increase and the U.S. increasing by 800 percent.
- Pet supplies, including food, have seen a 500 to 600 percent increase in online sales YoY.
- Not all sectors are seeing growth, with photography equipment sales dropping 55 percent YoY, and sunglasses and reading glasses facing a 50 percent reduction in sales.
- After initially flatlining at the beginning of the pandemic, wedding and engagement ring sales have begun to rebound.
“We believe that the changes in the retail landscape caused by the COVID-19 pandemic will be permanent,” said Or Lenchner, CEO of Luminati Networks. “The current crisis has pushed the shift to e-commerce ahead by years, as the current shopping behavior we are seeing reflects what had previously been predicted for the future. COVID-19 has also proved to be the final element in pushing the traditionally reluctant older demographic online, as the unavoidable reality of social distancing has removed any lingering technophobia stopping them from embracing the value of online retail.”
The data was gathered in partnership with Luminati’s e-commerce customer, QuickLizard, which works with customers to collect and understand data – allowing them to make smart real-time pricing decisions.
“The current COVID-19 crisis has rapidly changed the retail landscape and highlights how consumer attitudes are changing in these unprecedented times,” said, Pini Mendel, CEO of QuickLizard. “E-commerce is becoming increasingly popular, even with those that don’t traditionally buy online, and retailers are having to adapt to these demands quickly. In order to meet consumer needs retailers are turning to data gleaned online to understand consumer trends, a strategic necessity for all e-commerce players. This is likely to drive change so big it will have an impact past the current crisis. For example, it’s likely we will see home improvement retailers never return to their previous form, shifting instead to a showroom model where customers can sample products before ordering online.”
About Luminati Networks
Luminati Networks is a leading data collection platform dedicated to enabling businesses to view the internet with complete transparency. The company helps global brands, Fortune 500 included, gather publicly available online data in an ethical manner.
Luminati’s first-of-its-kind data collection automation (DCA) platform enables organizations to collect data at scale and gain a real and accurate perspective of how their customers are interacting with their brand and with their competitors. This means organizations can now make better, more informed business decisions based on real-time competitive intelligence.
Quicklizard is a global solution provider that helps retailers make smart real-time pricing decisions across online and offline channels. Relying on accurate data analysis, QL’s dynamic AI platform allows businesses to adjust prices with maximum precision, quickness, ease, and efficiency, as a basis for enhanced profit and revenue.