Sellercloud 2020 Year-Over-Year E-Commerce Growth Report | White Paper | Descartes Sellercloud

The Rise of E-Commerce in 2020

2020 marked a definitive inflection point for the e-commerce industry. Due to the disruptions caused by the COVID-19 pandemic, digital commerce became an essential lifeline for the survival of retail businesses. With brick-and-mortar retail largely hampered, customers flocked online, competing for limited merchandise supply. Fulfillment delays and out-of-stock notices led customers to adopt new online shopping habits, with increased willingness to try new retailers, brands, and channels.

As a result, e-commerce took off on a staggering upward trajectory. In just the first quarter of 2020, e-commerce adoption in the US accelerated at a pace that would have typically taken 10 years to achieve. This meteoric rise of e-commerce has not shown signs of relenting. Data has shown that this boom has truly been omnichannel, with increased conversions across various sales channels.

Despite early fulfillment challenges, Amazon remained an online retail powerhouse. Amazon Marketplace sales experienced an 80% GMV increase YOY in 2020, and FBA broke the $2 billion GMV threshold for the second straight year.

Amazon’s first-party channels also experienced strong growth. Vendor Central Direct Fulfillment and Amazon Vendor Central saw YOY GMV growth of 43% and 81%, respectively. The combination of Amazon Marketplace and FBA resulted in over 70 million unique orders in 2020, remaining a stalwart of e-commerce sales.

Walmart’s e-commerce channels also had a strong year, with a 104% YOY increase in GMV, compared to the 54% YOY increase of 2018-2019. This performance followed the rollout of Walmart+ and optimization of fulfillment plans.

In eBay’s case, 2020’s GMV of $423 million reversed a dip from the previous year. With campaigns aiding newcomers to e-commerce, eBay remains poised for growth.

Sellercloud users’ first-party websites produced impressive sales totals, eclipsing both eBay’s and Walmart’s GMV growth. Magento users saw a 492% YOY increase in GMV, generating over half a billion dollars. First-party website order numbers surpassed eBay’s totals for the last six years.

The pandemic transformed diminished foot traffic into increased website visits, benefiting several traditional retailers, with notable GMV increases for Home Depot and Bed Bath & Beyond. Online-exclusive channels like Etsy gained significantly, building on prior growth.

The data shows new populations of customers making the shift to e-commerce. Industry projections indicate that many of these customers will continue to shop online in the coming years.

As 2020 was unprecedented, it will be remembered in the e-commerce sector as a critical inflection point. Success in e-commerce will depend on ensuring availability across various sales channels and adopting diversified strategies. Data indicates that Sellercloud users are already engaged in omnichannel selling, with 80% selling across six or more e-commerce channels.

As an omnichannel management platform, Sellercloud offers an all-in-one solution with features like: