US ecommerce sales boomed despite retail struggles in Q2 2020 - Business Insider

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Ecommerce's new level of importance means that retailers, solution providers, and issuers should adjust operations to boost their performances during the pandemic

store closures, and pushed consumers away from stores that were open in an effort to limit their exposure to the virus.But US ecommerce sales have benefited from the move away from stores, soaring 44.4% annually in the quarter after growing just 13.9% YoY in Q2 2019. This gave ecommerce sales a 15.1% share of total US retail, up from 10.

Retailers suddenly need to build out their ecommerce capabilities to tap into online sales growth, and commerce enablement firms should be jumping at the opportunity to help them. Retailers that sell online and provide click-and-collect services have the chance to tap into ecommerce's rapid growth and attract sales during the pandemic despite retail's overall struggles.

Issuers that want to boost their payments volume despite retail's struggles can take advantage of ecommerce's growth by incentivizing online purchases with rewards. Several major issuers saw their card spending in Q2 due to the pandemic. Although they're already showing signs of recovery, if they can convince consumers to make all of their ecommerce purchases with their cards, they should be able to raise their performances higher.

 

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