The problem with eCommerce

It turns out it’s pretty easy to lose money. Here’s what brands can do.

This article was originally published via my newsletter, Curious Commerce — a weekly dive into the latest happenings in consumer and retail, through a strategy lens.

I’ve been amazed at how quickly the stores in my neighborhood have facilitated a digitally-enabled experience in response to COVID restrictions. Local restaurants are using Instagram to push out menus and posting Venmo codes in their windows to facilitate payment. Local boutiques are hosting livestream events to show off summer styles. All of this ingenuity is amazing, but made me wonder how the numbers will stack up for brick-and-mortar based businesses over the long run as they build out their own eCommerce operations.

Impulse shopping is a real problem for shoppers, but great for brands. Image via Frankie Cordoba for Unsplash.

eCommerce is accelerating in the pandemic era

According to Retail Dive, eCommerce captured 19% of overall retail sales, up from 12% on average the past two years, according to Wells Fargo Economics Group, led by Senior Economist Tim Quinlan. A Mastercard SpendingPulse report found that e-commerce sales increased by 92.7% in May.

Experts speculate that this shift may be permanent. Many customers are trying online shopping for the first time. Others are experimenting with…