Business
How online shopping has changed during COVID-19
How online shopping has changed during COVID-19
Chances are good that how you shop has changed significantly during the COVID-19 pandemic. That’s not just because people were stuck at home during lockdowns or transitioned to work from home. It’s also because they were increasingly seeking novelty in their products, changing brands for what was newer and more inexpensive. They were trying out more products in augmented reality before adding them to their cart, from earrings and eye shadow to new couches.
To track how our buying habits changed, Cheap Insurance collected information from a variety of government and industry sources to examine how the pandemic has impacted online shopping.
According to the Census Bureau’s Annual Retail Trade Survey (published April 2022), e-commerce generated more than $800 billion in sales in 2020, boosted partly by a huge increase in online grocery orders. Meanwhile, clothing stores saw some of the biggest plummets in revenue, losing more than 25% of sales between 2019 and 2020, Some people may have put on office-appropriate tops for their Zoom calls, but the rest were keeping our cameras off in pajamas or athleisure. Plus, people who reported in to work as essential workers were more likely to rely on uniforms or specialized clothing like scrubs that aren’t part of the general clothing market.
Continue reading to learn 10 ways COVID-19 has changed online shopping.
afotostock // Shutterstock
E-commerce sales grew by 43% during 2020
The Annual Retail Trade Survey examines the state of retail sales, both online and at traditional points of sale. The umbrella term “e-commerce” includes all transactions online that correspond with goods or services delivered in real life, plus all the infrastructure (like internet marketing) that supports those transactions. It makes sense that people turned to e-commerce during the most locked-down year of the pandemic in the U.S., increasing these sales by an astonishing 43% in one year. People especially turned to e-commerce for things like grocery shopping and restaurant ordering that were typically more “offline.” At the same time, some industries suffered, like gas stations, bookstores, and clothing retailers.
Ivan Kruk // Shutterstock
Globally, people began shopping online more, but spending less
An October 2020 survey from the United Nations Conference of Trade and Development found that, between March and June 2020, online purchases increased by 6 to 10 percentage points across most product categories. However, average online monthly spending per shopper dropped markedly. Overall, Americans lost income stability and some percentage of their income during the pandemic. They may have been pushed to purchase things like groceries online if possible, but that doesn’t mean they felt confident spending as much as they did before. Those trends seem to be true worldwide as well.
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Online grocery shopping took off
Many other industries could fall away as nonessential during a crisis, but people still always need to eat. Grocery stores pivoted pretty quickly into pandemic mode, offering full delivery through third-party services like Instacart as well as hybrid options like curbside pickup. According to August 2021 estimates from Insider Intelligence, online grocery shopping spiked 63.9% in 2020, 12.3% in 2021, and will grow another 20.5% in 2022. In 2021, for the first time ever, more than half the U.S. population bought groceries online, per Insider Intelligence, marking a sea change for the notoriously low-margin grocery industry. Despite food prices increasing amid inflation, it seems some shoppers may stick with online grocery shopping, whether out of convenience or lingering concerns as the pandemic enters a less-acute phase.
kitzcorner // Shutterstock
More consumers are switching brands
In a survey conducted by McKinsey between February and March 2022, 46% U.S. consumers said they shopped a different brand in 2022 compared to 33% who did so in 2020. One reason is inflation, which has raised prices for almost everything. When money is tight, it makes sense to buy what is cheaper, whether that’s the generic brand of tomato sauce or a new kids’ clothing brand showing up on your Instagram feed. Today, consumers have a more “normal-seeming” selection of brands available as well, now that many of the worst supply chain issues have passed. People are also switching brands in pursuit of novelty to try out something new or different.
RossHelen // Shutterstock
Shoppers are testing accessories, furniture, and more with augmented reality
In October 2020, Harvard Business Review reported on some of the ways augmented reality is changing the retail experience online and in stores. Many clothing retailers already offered some form of virtual try-on where a “similar” virtual body was used to model a brand of clothes. Now, others have made the leap to AR, placing images of earrings or beauty products on customers’ faces and ears in situ. It’s also a great way to try out furniture, letting customers simulate where to place a new couch or table in their living room. IBM’s 2020 Retail Index Report found that this kind of technology has moved consumers five years closer to a future anchored in online shopping.
Yuganov Konstantin // Shutterstock
Out-of-stock messages are more common
With supply chain disruptions caused by everything from a lack of dock workers and shipping containers to factory shutdowns, shoppers became all too familiar with “out of stock” notifications on their favorite websites. Shoppers saw 60 billion out-of-stock messages between March 2020 and February 2022, according to Adobe’s Digital Economy Index. The rate of these notifications has increased from 1 in 200 items to 1 in 59. During the height of pandemic panic shopping, photos of empty grocery shelves took over social media. But with the long tail of the supply chain, that phenomenon now stretches into clothing, video games, and much more.
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An estimated half of all US adults made a purchase on social media in 2022
Social media platforms like Facebook let users buy some goods directly within their dedicated apps. On TikTok, users can buy through the e-commerce platform Shopify. On Instagram, certain users can sell goods using its proprietary Checkout service. And of course, there are still countless “click the link” and “store in bio” posts across social media, directing users to an account’s proprietary e-commerce site.
Casimiro PT // Shutterstock
People bought a lot more furniture online
People have spent more time in their homes than almost ever before during the last few years. Many have built new home offices and outfitted entire outdoor spaces to shift their activities toward the safety of home. Furniture and home furnishings saw the largest increase in e-commerce sales between 2019 and 2020, increasing by more than $41 billion, according to 2020 data from the U.S. Census Bureau. It’s honestly surprising that any industry saw an increase from 2019 to 2020, when sales across the board were depressed. But this is e-commerce sales of furnishings, not overall sales including stores.
Ground Picture // Shutterstock
People around the globe plan to keep shopping online
Some in the industry have wondered if pandemic online shopping habits were temporary, caused by obstacles like lockdown. It’s true more shoppers are returning to brick-and-mortar stores, but overall, online shopping has also remained steady. Respondents to a United Nations Conference on Trade and Development survey of around 3,700 consumers in nine rising economies expressed a desire to continue the online shopping habits they formed during the pandemic. That includes shopping from many different retailers, including through social media apps, and a different relationship to brand loyalty than prior to the pandemic.
Andrey_Popov // Shutterstock
Omnichannel shopping appears to be the new normal
From the growing body of data, it’s clear that online shopping has reached a new level of influence in Americans’ daily lives. Three in 4 U.S. consumers are interacting with brands through multiple online and in-store channels, according to a McKinsey survey conducted in February and March 2022. There are some ways this could be harmful, especially to businesses like restaurants and neighborhood boutiques that have relied on foot traffic and in-person services. But others, such as grocery stores, have been able to pivot to what consumers need most at a given time. And with in-app shopping on social media as well as AR try-ons, the next generation of online shopping may be unfolding.
This story originally appeared on Cheap Insurance and was produced and
distributed in partnership with Stacker Studio.
In today’s digital climate, consuming sports has never been easier. Thanks to a plethora of streaming sites, alternative broadcasts, and advancements to home entertainment systems, the average fan has myriad options to watch and learn about their favorite teams at the touch of a button—all without ever having to leave the couch.
As a result, more and more sports venues have committed to improving and modernizing their facilities and fan experiences to compete with at-home audiences. Consider using mobile ticketing and parking passes, self-service kiosks for entry and ordering food, enhanced video boards, and jumbotrons that supply data analytics and high-definition replays. These innovations and upgrades are meant to draw more revenue and attract various sponsored partners. They also deliver unique and convenient in-person experiences that rival and outmatch traditional ways of enjoying games.
In Los Angeles, the Rams and Chargers’ SoFi Stadium has become the gold standard for football venues. It’s an architectural wonder with closer views, enhanced hospitality, and a translucent roof that cools the stadium’s internal temperature.
The Texas Rangers’ ballpark, Globe Life Field, added field-level suites and lounges that resemble the look and feel of a sports bar. Meanwhile, the Los Angeles Clippers are building a new arena (in addition to retail space, team offices, and an outdoor public plaza) that will seat 18,000 people and feature a fan section called The Wall, which will regulate attire and rooting interest.
It’s no longer acceptable to operate with old-school facilities and technology. Just look at Commanders Field (formerly FedExField), home of the Washington Commanders, which has faced criticism for its faulty barriers, leaking ceilings, poor food options, and long lines. Understandably, the team has been attempting to find a new location to build a state-of-the-art stadium and keep up with the demand for high-end amenities.
As more organizations audit their stadiums and arenas and keep up with technological innovations, Uniqode compiled a list of the latest tech advancements to coax—and keep—fans inside venues.
Jeff Gritchen/MediaNews Group/Orange County Register // Getty Images
Just Walk Out technology
After successfully installing its first cashierless grocery store in 2020, Amazon has continued to put its tracking technology into practice.
In 2023, the Seahawks incorporated Just Walk Out technology at various merchandise stores throughout Lumen Field, allowing fans to purchase items with a swipe and scan of their palms.
The radio-frequency identification system, which involves overhead cameras and computer vision, is a substitute for cashiers and eliminates long lines.
RFID is now found in a handful of stadiums and arenas nationwide. These stores have already curbed checkout wait times, eliminated theft, and freed up workers to assist shoppers, according to Jon Jenkins, vice president of Just Walk Out tech.
Billie Weiss/Boston Red Sox // Getty Images
Self-serve kiosks
In the same vein as Amazon’s self-scanning technology, self-serve kiosks have become a more integrated part of professional stadiums and arenas over the last few years. Some of these function as top-tier vending machines with canned beers and nonalcoholic drinks, shuffling lines quicker with virtual bartenders capable of spinning cocktails and mixed drinks.
The kiosks extend past beverages, as many college and professional venues have started using them to scan printed and digital tickets for more efficient entrance. It’s an effort to cut down lines and limit the more tedious aspects of in-person attendance, and it’s led various competing kiosk brands to provide their specific conveniences.
Kyle Rivas // Getty Images
Mobile ordering
Is there anything worse than navigating the concourse for food and alcohol and subsequently missing a go-ahead home run, clutch double play, or diving catch?
Within the last few years, more stadiums have eliminated those worries thanks to contactless mobile ordering. Fans can select food and drink items online on their phones to be delivered right to their seats. Nearly half of consumers said mobile app ordering would influence them to make more restaurant purchases, according to a 2020 study at PYMNTS. Another study showed a 22% increase in order size.
Many venues, including Yankee Stadium, have taken notice and now offer personalized deliveries in certain sections and established mobile order pick-up zones throughout the ballpark.
Darrian Traynor // Getty Images
QR codes at seats
Need to remember a player’s name? Want to look up an opponent’s statistics at halftime? The team at Digital Seat Media has you covered.
Thus far, the company has added seat tags to more than 50 venues—including two NFL stadiums—with QR codes to promote more engagement with the product on the field. After scanning the code, fans can access augmented reality features, look up rosters and scores, participate in sponsorship integrations, and answer fan polls on the mobile platform.
Boris Streubel/Getty Images for DFL // Getty Images
Real-time data analytics and generative AI
As more venues look to reinvigorate the in-stadium experience, some have started using generative artificial intelligence and real-time data analytics. Though not used widely yet, generative AI tools can create new content—text, imagery, or music—in conjunction with the game, providing updates, instant replays, and location-based dining suggestions
Last year, the Masters golf tournament even began including AI score projections in its mobile app. Real-time data is streamlining various stadium pitfalls, allowing operation managers to monitor staffing issues at busy food spots, adjust parking flows, and alert custodians to dirty or damaged bathrooms. The data also helps with security measures. Open up an app at a venue like the Honda Center in Anaheim, California, and report safety issues or belligerent fans to help better target disruptions and preserve an enjoyable experience.
Story editing by Nicole Caldwell. Copy editing by Paris Close. Photo selection by Lacy Kerrick.
This story originally appeared on Uniqode and was produced and
distributed in partnership with Stacker Studio.
Inflation has cooled substantially, but Americans are still feeling the strain of sky-high prices. Consumers have to spend more on the same products, from the grocery store to the gas pump, than ever before.
Increased import costs are part of the problem. The U.S. is the largest goods importer in the world, bringing in $3.2 trillion in 2022. Import costs rose dramatically in 2021 and 2022 due to shipping constraints, world events, and other supply chain interruptions and cost pressures. At the June 2022 peak, import costs for all commodities were up 18.6% compared to January 2020.
While import costs have since fallen most months—helping to lower inflation—they remain nearly 12% above what they were in 2020. And beginning in 2024, import costs began to rise again, with January seeing the highest one-month increase since March 2022.
Machinery Partner used Bureau of Labor Statistics data to identify the soaring import costs that have translated to higher costs for Americans. Imports in a few industries have had an outsized impact, helping drive some of the overall spikes. Crop production, primary metal manufacturing, petroleum and coal product manufacturing, and oil and gas extraction were the worst offenders, with costs for each industry remaining at least 20% above 2020.
Machinery Partner
Imports related to crops, oil, and metals are keeping costs up
At the mid-2022 peak, import costs related to oil, gas, petroleum, and coal products had the highest increases, doubling their pre-pandemic costs. Oil prices went up globally as leaders anticipated supply disruptions from the conflict in Ukraine. The U.S. and other allied countries put limits on Russian revenues from oil sales through a price cap of oil, gas, and coal from the country, which was enacted in 2022.
This activity around the world’s second-largest oil producer pushed prices up throughout the market and intensified fluctuations in crude oil prices. Previously, the U.S. had imported hundreds of thousands of oil barrels from Russia per day, making the country a leading source of U.S. oil. In turn, the ban affected costs in the U.S. beyond what occurred in the global economy.
Americans felt this at the pump—with gasoline prices surging 60% for consumers year-over-year in June 2022 and remaining elevated to this day—but also throughout the economy, as the entire supply chain has dealt with higher gas, oil, and coal prices.
Some of the pressure from petroleum and oil has shifted to new industries: crop production and primary metal manufacturing. In each of these sectors, import costs in January were up about 40% from 2020.
Primary metal manufacturing experienced record import price growth in 2021, which continued into early 2022. The subsequent monthly and yearly drops have not been substantial enough to bring costs down to pre-COVID levels. Bureau of Labor Statistics reporting shows that increasing alumina and aluminum production prices had the most significant influence on primary metal import prices. Aluminum is widely used in consumer products, from cars and parts to canned beverages, which in turn inflated rapidly.
Aluminum was in short supply in early 2022 after high energy costs—i.e., gas—led to production cuts in Europe, driving aluminum prices to a 13-year high. The U.S. also imposes tariffs on aluminum imports, which were implemented in 2018 to cut down on overcapacity and promote U.S. aluminum production. Suppliers, including Canada, Mexico, and European Union countries, have exemptions, but the tax still adds cost to imports.
U.S. agricultural imports have expanded in recent decades, with most products coming from Canada, Mexico, the EU, and South America. Common agricultural imports include fruits and vegetables—especially those that are tropical or out-of-season—as well as nuts, coffee, spices, and beverages. Turmoil with Russia was again a large contributor to cost increases in agricultural trade, alongside extreme weather events and disruptions in the supply chain. Americans felt these price hikes directly at the grocery store.
The U.S. imports significantly more than it exports, and added costs to those imports are felt far beyond its ports. If import prices continue to rise, overall inflation would likely follow, pushing already high prices even further for American consumers.
Story editing by Shannon Luders-Manuel. Copy editing by Kristen Wegrzyn.
This story originally appeared on Machinery Partner and was produced and
distributed in partnership with Stacker Studio.
Nearly every state requires drivers to carry car insurance, but the laws vary, and many factors affect the cost of coverage.
Some are controllable, at least to degrees: the type of car you have and your credit history. Some are not: your age and gender. Your marital status, place of residence, and claims history are among the other variables that go into it.
Across the United States, premiums are soaring, rising 20% year over year and increasing six times faster than consumer prices overall as of December 2023, CBS reported. Last September, CNN noted that car insurance rates jumped more in the previous year than they had since 1976.
CBS pointed to many potential reasons for these increases in prices. Coronavirus pandemic-era issues have made buying, fixing, and replacing vehicles costlier. Extreme weather events caused by climate change also damage more vehicles, while insurance companies are increasing their business costs. Severe and more frequent crashes are to blame as well, CNN reported.
On top of these, local factors such as population density, the number of uninsured drivers, and the frequency of insurance claims all affect premiums, which can lead motorists to change or switch their coverage, use other modes of transportation, or even alter decisions about when to buy a vehicle or what to look for.
To see how geography affects cost, Cheap Insurance mapped the states where people pay the most in car insurance premiums using MarketWatch data. Premium estimates were based on full-coverage car insurance for a 35-year-old driver with good credit and a clean driving record. Data accurate as of February 2024.
Cheap Insurance
Americans pay $167 per month on average for full-coverage insurance
There are common denominators among the five states where it’s most expensive to have car insurance: Michigan, Florida, Louisiana, Nevada, and Kentucky. Washington D.C. is another pricey locale, ranking #4 overall.
Three of these six are no-fault jurisdictions and require additional coverage beyond coverage to pay for medical costs. Michigan notably calls for $250,000 in personal injury protection (though people with Medicaid and Medicare may qualify for lower limits), $1 million in personal property insurance for damage done by your car in Michigan, and residual bodily injury and property damage liability that starts at $250,000 for a person harmed in an accident.
Other commonalities between these states include high urban population densities. At least 9 in 10 people in Nevada, Florida, and Washington D.C. live in cities and urban areas, which leads to more crashes and thefts and high rates of uninsured drivers and lawsuits. Additionally, Louisiana, Florida, and Kentucky rank #5, #8, and #10, respectively, in motor vehicle crash deaths per 100 million vehicle miles traveled in 2021 based on Department of Transportation data analyzed by the Insurance Institute for Highway Safety.
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#5. Kentucky
– Monthly full-coverage insurance: $210
– Monthly liability insurance: $57
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#4. Nevada
– Monthly full-coverage insurance: $232
– Monthly liability insurance: $107
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#3. Louisiana
– Monthly full-coverage insurance: $253
– Monthly liability insurance: $77
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#2. Florida
– Monthly full-coverage insurance: $270
– Monthly liability insurance: $115
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#1. Michigan
– Monthly full-coverage insurance: $304
– Monthly liability insurance: $113
Story editing by Carren Jao. Copy editing by Paris Close. Photo selection by Lacy Kerrick.
This story originally appeared on Cheap Insurance and was produced and
distributed in partnership with Stacker Studio.
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