The Cube: The Impact of E-commerce After the Pandemic
- 2 days ago
- 3 min read
As a Cube insider, you'll get access to interesting new trends, what we think about them and how you can benefit.
New Trend: The Continued Rise of E-commerce since 2020
The pandemic-driven surge in e-commerce has matured into a new baseline: growth rates are moderating in major markets, but the overall momentum remains strong. For example, in 2025, global retail e-commerce sales are projected to grow ~6.8% year-over-year — the slowest pace since 2022 in some reports. Online channels are as entrenched as brick and mortar, in most cases the two are no longer separated at all.
Technology and experience are increasingly central:
AI-driven personalization, recommendations and shopping assistants are becoming standard.
Social commerce (shopping via social platforms) is rising rapidly: one report says that by 2030, social commerce revenue could reach USD 6.2 trillion.
AR/VR, voice commerce, and enhanced mobile experiences are advancing, helping to reduce friction in online shopping.
The B2B e-commerce segment is large and growing: e.g., the global B2B e-commerce market is forecast to reach ~USD 47.5 trillion by 2030 from ~USD 19.3 trillion in 2024 (CAGR ~16.2 %).
New Insight: Physical Retail is Evolving, not Dying
Researcher John Mercer at Coresight Research has observed how the retail industry has “really ballooned” during the pandemic. According to him, he states, “One point we’ve made repeatedly is that consumers, we think, still haven’t ceded what they’ve spent. But then, of course, the long-term effect of that stimulus is fueling inflation, which then obviously is challenging for consumers.” The rise of inflation connects with the decrease of many customers’ savings during the pandemic. They’ve receded on discretionary purchases like home goods. It’s ultimately led to the past two years of declines and stagnation, which fuels bankruptcies.
While it seems like e-commerce is replacing traditional, in-person shopping, it’s not entirely the truth. Mercer has noted more of an emphasis on physical retail still holding some value. He elaborates by stating, “There are places where stores can fill in those gaps around e-commerce and digital if they focus on some of those.” We are currently seeing the subdued spending in aggressive store closures in 2025 for local businesses. Coresight Research predicted 15,000 locations would shut down, with a 55% increase over 2020’s count. It’s more than double compared to last year’s total, even with the rise of increasingly competitive online stores such as Temu, Shein, and TikTok Shop.
For the consumers, they turn to online stores for their convenience, speed, and safety, preferring to shop online than to go to a physical store. Companies have to shift their digital storefronts by optimizing user experiences and enhancing their technology with AI to create personalized shopping experiences. Features such as live chat support, personalized recommendations, easy navigation, and a simple checkout process significantly enhance the user experience.
In summary, physical retail isn’t dying — it’s evolving. Mercer points out that despite all the attention on e-commerce, brick-and-mortar stores still matter. Stores fill important gaps: they’re great for product discovery, fast returns, same-day pickup, and giving customers real-world experiences that screens just can’t. The future isn’t online or in-store — it’s both. Think of it as “omnichannel 2.0.”
New Action: The Future of E-commerce for Your Business
The impact of the COVID pandemic led to more businesses adopting e-commerce-friendly strategies to keep their target audiences’ needs satisfied. With everyone locked indoors due to pandemic protocols, people had to rely on the Internet to engage with a variety of companies, markets, and industries. They ordered products, goods, and services through e-commerce in the form of online shopping, food delivery, and mobile apps suited for customer needs. If your business needs to find a way to adapt to our current digital age, you have to engage with buyer personas and be tech-savvy in your brand.
Many businesses had to revalue their business models to include a new approach to omnichannel 2.0.
Despite the slower growth of e-commerce recently and the continuation of economic stagnation, the impact of online shopping has shaped the retail industry to have more of a relationship with their customers based on their profiles and increased use of technology.
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