Online Spending Will Top $1 Trillion This Year
Did you hear the good news?
The Centers for Disease Control and Prevention (CDC) recently eased mask requirements.
Over 98% of Americans no longer need to wear a mask indoors in most cases.
(You can check the CDC’s guidelines for your county by going here.)
It’s the latest sign that life is going back to how it was before the pandemic.
But one change that’s here to stay is Americans’ love for online shopping.
U.S. e-commerce spending surged 41.4% in 2020. And it continues to grow at a healthy pace.
In fact, a new report estimates that online spending will top $1 trillion this year for the first time.
The Shift Toward E-Commerce Isn’t Slowing Down
Computer software firm Adobe published its Adobe Digital Economy Index on Tuesday.
The report highlights $204.5 billion in online spending during the 2021 holiday season.
That surge in holiday e-commerce helped push total online sales to $855 billion last year, a new high.
This growth is partly due to the pandemic. But the shift toward e-commerce isn’t slowing down.
Adobe expects online spending to total over $1 trillion in 2022.
(Source: Adobe Analytics.)
There are a few reasons online sales will keep going up:
- Many retailers now give the option to buy items online and pick them up at the store. Curbside or in-store pickup was used in 23% of online orders this holiday season. Also, online grocery shopping is now a major e-commerce category.
- As Ian King noted last month, many Americans spend five or more hours a day on their smartphone. So it may not be a surprise that 43% of online holiday sales were made on smartphones.
- “Buy now, pay later” (BNPL) companies help consumers afford online purchases. Adobe reports that BNPL orders were up 479% since 2019.
- Inflation is making everything more expensive, and online shopping is no exception. Online prices increased in December for the 19th month in a row.
Plus, high gas prices will encourage people to shop online so they don’t have to drive around to stores.
The No. 1 Stock for the New Digital Economy
Fintech is critical as the economy moves into the digital world.
And in his special report, Ian reveals the No. 1 way to play the fintech trend.
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And with the broad sell-off in tech stocks, you can grab shares now at a great price.
Assistant Managing Editor, Banyan Hill Publishing
From open till noon Eastern time.
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