70% of Americans Shop Small

YOUNGSTOWN, Ohio – Amazon and other leading ecommerce giants have changed the shopping experience in recent years. Easy one-click buys and same-day delivery are what 80% of shoppers now look for when shopping. This ease earned Amazon $96.15 billion in yearly revenue by the end of September 2020 – all while the COVID-19 pandemic continued. Stay-at-home orders throughout the year and the need to support small businesses grew as large ecommerce sites took the spotlight.

Due to COVID-19, many shoppers opted for online orders and same-day delivery – things most small businesses couldn’t match. As a result, small business sales decreased, and up to 50% of shops closed in some countries. For the local shops still standing, the overwhelming support of consumers definitely helped; just over 82% of consumers say they’d spend more to support local businesses after the pandemic, according to an Intuit-MintLife survey.

The survey showed that 57% percent of consumers shop local to keep money close to home, and 38% percent of consumers support local businesses to feel connected with their community. According to Fundera, 108 million shoppers spent over $12.9 billion on 2020’s Small Business Saturday (compared to $20 billion in 2019).

Here’s how holiday budgets were spent during the season:

  • 70% of consumers are supporting local businesses by shopping online only, or a mix of online and in-store.
  • 57% of Americans say their main reason for shopping small is to keep money local.
  • Additionally, 38% of shoppers say they want to support their community and local creators.
  • 28% buy local for better service and 19% percent to help local non-profits.
  • Millennials and Gen X consumers are most likely to support local businesses by only shopping online (45%).
  • People who choose to shop in-store at small businesses are mostly over the age of 45 (56%).

Other buying local statistics include:

  • One in five consumers were focused on shopping small businesses in the winter of 2020.
  • In 2019, shoppers spending at small businesses instead of department stores increased by three million.
  • $12.9 billion was spent during Small Business Saturday in 2020, down 65% from 2019 ($20 billion).
  • One third of shoppers in 2020 were buying more gift cards from small businesses.
  • For every $100 spent at small businesses, $48 is put back into the local economy.
  • Small business online sales increased by 18% percent from 2018 to 2019.
  • 77% of shoppers admit they’d like to see face masks worn when shopping at local shops.
  • 20% of small businesses in the U.S. are working on building ecommerce storefronts as well.

Source: Intuit MintLife

Copyright 2022 The Business Journal, Youngstown, Ohio.