US Role of Tech in eCommerce Market Report 2022

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top takeaways
• Market overview
  • Figure 1: Total US retail ecommerce sales and fan chart forecast, at current prices, 2016-26
  • Figure 2: eCommerce technology outlook, 2022-27
• Opportunities and challenges
• Deliver on practical features that enable convenience and seamlessness
• Mobile shopping opens up new pathways for convenience and multichannel shopping
• Privacy a top concern for consumers that creates challenges for marketers
• Key consumer insights

Market Size and Forecast

• Continued growth for ecommerce, but pace slows as the market stabilizes
  • Figure 3: Total US retail ecommerce sales and fan chart forecast, at current prices, 2016-26
  • Figure 4: Total US retail and ecommerce sales and forecast, at current prices, 2016-26

Market Factors

• Inflation takes a bite out of purchasing power
  • Figure 5: 12-month percentage change, Consumer Price Index for all items, 2021-22
  • Figure 6: Disposable personal income change from previous period, 2007-22
• Privacy regulations shift the landscape for marketers
• Mobile is leading digital transformation
• Digital innovation opens up new frontiers
• Climate change escalates concerns about the environmental footprint of ecommerce

Competitive Strategies and Market Opportunities

• Competitive strategies
• Walmart is an industry leader on emerging technology
• • Figure 7: Walmart highlights tech offerings
• IKEA inspires its customers to get creative with AR
  • Figure 8: IKEA launches “Kreativ” design experience; tests innovation with “Updatables” concept
• Brands hedge their bets on metaverse experiences
  • Figure 9: Brands lean into NFTs and the metaverse
• Market opportunities
• Streamline and revolutionize digital payments and checkout
• Gain trust with transparent communication about privacy and security
• Get conversational with SMS and shop by text or voice
  • Figure 10: Attentive + Erin Condren demonstrate SMS shopping features
• Leverage partnerships and acquisitions
• Take full advantage of social commerce
• • Figure 11: Pinterest and Twitter announce new updates to shopping functionality

The Consumer – Fast Facts

Online Shopping Overview

• A majority of consumers are heavy online shoppers
  • Figure 12: Shopping frequency – NET, by generation, 2022
• Mobile shopping is on the rise as smartphone screen time grows
  • Figure 13: Devices used for browsing and buying, 2022
• • Figure 14: Devices used for buying, by generation, 2022
• Consumers shop online across categories, but the store remains the preferred channel for most
  • Figure 15: Shopping methods by category, 2022
• Apparel, BPC and Electronics are the categories most often shopped online
  • Figure 16: Brands and retailers leverage tech tools to create solutions
• Household purchases and food and drink still widely shopped online but lag other categories
  • Figure 17: Uber Eats rolls out improvements to grocery delivery

Key Elements of eCommerce

• Convenience and seamlessness remain the top drivers for online shopping
  • Figure 18: Importance of key elements when shopping online, 2022
• Younger consumers expect more from the online shopping experience
  • Figure 19: Top two ranking of key elements when shopping online, by generation, 2022
• Opportunity to engage Black and Hispanic consumers with personalization
  • Figure 20: Top two ranking of key elements when shopping online, by race and Hispanic origin, 2022
• • Figure 21: Pinterest and Walmart make personalization more inclusive

Technology Familiarity and Interest

• Familiarity with tech is growing; interest remains high but may be waning
  • Figure 22: Technology familiarity and interest, 2022
• • Figure 23: Technology familiarity and usage, any familiarity or interest, 2022
• Younger generations lead the way on emerging technology
  • Figure 24: Technology interest, by generation, 2022
• Black consumers are excited about technology
  • Figure 25: Technology Interest, Black consumers versus all, 2022

How Consumers Use Technology

• Consumers shop using tech they are most familiar with
• • Figure 26: Technologies used while shopping, 2022
• Consumers are more likely to use tech for leisure and entertainment
  • Figure 27: Tech used for shopping and leisure activities, 2022
• • Figure 28: Walmart, Gucci and Snapchat highlight retail/tech partnerships
• Older consumers shop online but are slow to adopt technology
  • Figure 29: Technologies used while shopping, 2022
• • Figure 30: Amazon educates consumers on how to use features for Prime Day
• Parents see the benefits of technology
  • Figure 31: Technologies used while shopping, by parental status, 2022
• Young males explore emerging tech, Web3 and the metaverse
  • Figure 32: Select technologies used for shopping versus personal leisure, by gender and age, 2022
• • Figure 33: Timberland, Valaclava appeal to early adopters with metaverse experiences and NFTs

Motivations and Barriers

• Motivations: tech enables discovery and simplification
  • Figure 34: Motivations for using new tech, 2022
• Most consumers want a streamlined shopping experience
  • Figure 35: Motivations for using new tech – Streamlined shopping, by generation, 2022
• Parents look to ecommerce for convenience and discovery
  • Figure 36: Motivations for using new tech – Convenience and discovery, by parental status, 2022
• • Figure 37: Crayola “Create and Play” app
• Gen Z and Millennials enjoy the experience
  • Figure 38: Motivations for using new tech – Experiential, by generation, 2022
• • Figure 39: e.l.f. Cosmetics launches “Game Up” collection across social media channels
• Higher-income shoppers want seamless and secure checkout
  • Figure 40: Motivations to use new tech – Checkout and security, by age and household income, 2022
• Barriers: privacy concerns and lack of interest are top challenges
  • Figure 41: Barriers to using tech, 2022
• Older consumers lack interest in technology; digital natives are skeptical on the benefits
  • Figure 42: Select barriers to using new technology, by generation, 2022
• Black and Hispanic consumers are interested in tech, but internet speed is a barrier
  • Figure 43: Select barriers to using new technology, by race and Hispanic origin, 2022
• • Figure 44: Procter & Gamble’s “One Million Connected Devices Now” addresses digital divide

Attitudes toward eCommerce Technology

• Shopping technology is a “nice to have”
  • Figure 45: Attitudes toward shopping technology, 2022
• Tech options more likely to influence where young consumers shop
  • Figure 46: Attitudes toward shopping technology, by generation, 2022
• Mobile shopping sees the biggest benefit from tech
  • Figure 47: Attitudes toward shopping technology, by devices used, 2022
• Consumers are mastering the art of shopping online
  • Figure 48: Attitudes toward shopping online, by generation, 2022
• • Figure 49: Nike + RTFKT forging event leverages NFTs to authenticate products
• Interest in alternative payments and cryptocurrency is gaining
  • Figure 50: Attitudes toward shopping online, by key demographics, 2022
• Consumers are satisfied with the online shopping experience
  • Figure 51: Attitudes toward elements of ecommerce, 2022
• Gen Z sees the most room for improvement
  • Figure 52: Attitudes toward elements of ecommerce – Generation Z, 2022

Improving the Shopping Journey with Tech

• Technology adds convenience and seamlessness
  • Figure 53: Online shopping improvements, by generation, 2022
• Parents have a need for more information
  • Figure 54: Select online shopping improvements, by parental status, 2022
• Young and multicultural consumers want a deeper connection with brands
  • Figure 55: Select online shopping improvements, by generation and race or Hispanic origin, 2022
• • Figure 56: Browser extensions GoodBuy and Progressive Shopper raise awareness of brand values

Future Applications

• Consumers want tech features to solve common frustrations
  • Figure 57: Desired future online experiences, 2022
• Gen Z looks to the future of ecommerce
  • Figure 58: Select desired future online experiences, by generation, 2022
• • Figure 59: Neen bridges the gap between physical and digital experiences
• Live stream and metaverse experiences an opportunity to create inclusive communities
  • Figure 60: Select desired future online experiences, by race and Hispanic origin and sexual orientation, 2022
• • Figure 61: Meta highlights its efforts to build an inclusive metaverse
  • Figure 62: NYX Cosmetics creates inclusive avatars on The Sandbox platform

Appendix – Data Sources and Abbreviations

• Data sources
• Sales data
• Forecast
• Consumer survey data
• Abbreviations and terms
• Abbreviations
• Terms

Appendix – The Market

• • Figure 63: Total US retail and ecommerce sales and forecast, at inflation-adjusted prices, 2016-26

Appendix – The Consumer

• • Figure 64: Categories that could be most improved with tech, 2022