With trade challenges attributed to tariffs and a partial government shutdown, 2019 did not get off to a good start. Retailers are working to make the shopping experience better for all consumers. With customers becoming more comfortable with online shopping, more and more businesses are enhancing their online options for e-commerce growth.

Why People are Migrating to Online Shopping

Compared to older generations, millennials and generation X consumers are so much more trusting when it comes to online payments and orders. Vice president of Content and Thought Leadership for IRI, Joan Driggs, said: “as e-commerce becomes more of a routine, those shoppers are migrating offline efforts to save money to their online practices.” She points out how online shopping offers more variety on how to save. With coupons, easy comparison shopping, and search for more savings and deals. With the internet much more accessible, it is easier for consumers to be informed on their purchases.

For the latest 52 weeks ending Dec. 30, 2018, E-commerce sales had a 35.4% increase from the previous year, it was recorded to be $58.9 billion. This only accounted for 11% of the CPG retail sales. But e-commerce sales do account for 64% of the total growth of omnichannel. Head of IRI e-commerce, Sam Gagliardi said: “Pure-play retailers garner more than half of all online CPG purchases, but traditional brick-and-mortar retailers continue to invest and win a share of the e-commerce growth pie.” He states how these traditional retailers still have to invest in the e-commerce business in order to have a good consumer shopping experience both online and in stores.

Top-Selling Online Products

Home care products and personal care items (non-food items) seem to be the most in-demand online purchases. E-market IRI insights have found that pet food, skin care products, and vitamins are also highly demanded products in the E-commerce market. Consumers tend to purchase heavier and bulkier items online to avoid all the hassle that comes with buying it from the actual store and transporting it to their homes. It is more convenient for them to just buy these things online. But, certain products like vitamins, which are not bulky or a hassle to transport are also heavily demanded online because it is more convenient for people to search up ingredients and benefits of the vitamins.

GrandFusion as an ingredient for your CPG product or vitamins is important for e-commerce. As the experts at IRI stated, consumers are using online to better look at ingredients and sourcing. With GrandFusion, your vitamins will have a much cleaner ingredient statement and add all the functional, nutritional benefits of fruits and vegetables. Learn more!

creating functional foods and beverages product development food science testingIn a consumer survey, people have said that their online purchases have helped them save money by allowing them to look for lower priced alternatives. Good examples the consumers stated were lower priced beauty and personal care items. These items have a total of 29% of U.S. consumers. Within the 29%, 14% are seniors, 35% generation x, 27% baby boomers, and lastly, 45% millennials. As we can see, it is the younger generations that are driving the e-commerce market. But these same generations that are making more online purchases are also the ones that are having the most difficulty purchasing their needed groceries. Studies show that 54% of millennials and generation Xers are impulse buyers. The older generations tend to make fewer impulse purchases.

E-Commerce Growth Outlook

Gagliardi closes the article stating, “E-commerce sales will continue to climb in 2019 and beyond, with retailers increasingly investing in better ways to engage shoppers, including with improved navigation and mobile access, delivery and payment options, and endless aisle assortments.” With older generations dying off, leaving the younger generations who are used to online purchases, it is expected that the e-commerce market will continue to grow.

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