Consumers spent nearly $1 trillion more online during the pandemic

Ecommerce spending rose by over $900 billion during the pandemic as shoppers were forced to purchase their goods from home, according to research carried out by Mastercard.

Mastercard’s Recovery Insights study predicted that ecommerce will continue to take a larger proportion of the market post-pandemic.

The study predicted that 20 to 30 per cent of the spending shifted from the high street to online will remain after the pandemic.

It also found that for every $5 spent, $1 was spent online, an increase from $1 in every $7 in 2019.

READ MORE: UK consumers spent over a third more online during pandemic

“While consumers were stuck at home, their dollars travelled far and wide thanks to e-commerce,” Mastercard chief economist Bricklin Dwyer said.

The grocery sector saw a significant boom during the pandemic and is expected to retain 70 per cent of its sales in the future.

The online fashion industry is only expected to keep up to 20 per cent of its sales gained during the lockdown.

Industries such as home and garden as well as electronics saw sky-high booms as consumers spent more time at home, according to corroborating figures from IMRG.

Shoppers from Italy and Saudi Arabia purchased goods from 33 per cent more online retailers than they were previously, followed by Russia and the UK.

The report also estimated that the transition to digital payments from cash sped up by a year in the US.

The Fletcher School at Tufts University’s Dean of global business Bhaskar Chakravorti, said: “The pandemic may be the purest test of the world’s progress towards digitalisation to date.”

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