From ordering groceries to buying cars online, more Americans are adopting digital commerce today than before — a change that will probably outlast the pandemic and become permanent

Image via WSJ, Source: Commerce Department via St. Louis Fed

With lockdowns, social distancing and other effects of the pandemic, more and more American consumers are turning to digital commerce to meet many day to day needs, from online grocery shopping to even medical appointments and classes. Pickup and delivery options are becoming more widespread. This shift may soon become permanent as many Americans find the shift online to be more convenient and less stressful. Avoiding rush-hour traffic to pick up groceries by having them delivered is an example of this.

Shifts from in-person to digital commerce are evident in:

grocery purchasing
movie streaming
restaurant pick up and delivery
curbside pickup

How Companies Are Adapting

Image via WSJ, Source: Euromonitor International's Voice of the Industry: Retailing Survey, August 2020

E-commerce now makes up 43 percent of all sales at Macy’s Inc., up from 25 percent before the pandemic. The company is working with Google Inc. to improve upon its search engine results. Macy’s has even added same-day delivery for some online orders.

In September, Whole Foods Market Inc., owned by Amazon.com Inc., opened its first online-only store in Brooklyn, N.Y., to be able to offer more food delivery options. Whole Foods has made pickup an option for all 500 U.S. stores. Amazon Fresh, the grocery store arm of Amazon, has increased delivery by 160 percent since March.

In addition, contactless payment methods have increased, removing the need for swiping or inserting a physical credit card. Both Visa and MasterCard report increased global sales transactions by contactless options. For Mastercard, contactless payment went up from 30 percent last year to 41 percent in the third quarter of this year.

Changes have also been widespread as social distancing measures have resulted in lower gym attendance and a move to home workouts. There has been an increase in purchasing equipment for workouts from stationary bikes to treadmills and more, as well as taking courses and using apps for online courses and bootcamps.

Many of these changes will remain in effect after the pandemic ends, as they have brought convenience that has led to accelerated adoption.