The coronavirus pandemic has not only put people’s life at stake, but also badly affected the way of living due to emergency shutdowns, lack of resources, slowing consumer demands, and the list goes on. However, one thing that rose from going into ashes as rapidly as a phoenix is ecommerce. We have been witnessing the revival of ecommerce all around us, for quite a few months – even when other businesses were struggling to survive the pandemic.
As per the reports from IBEF (India Brand Equity Foundation), the ecommerce industry is expected to cross $200 billion in a short span of lesser than a decade from only $39 billion in 2017. The combo of increased superfluous incomes and widespread internet access has shown ways for the potential development of the ecommerce business across the developing as well as the developed nations. This expansion has opened doors for retailers to reach consumers across geographical barriers.
Hey, too much information, right?
No worries, we’re slowing down! So, the question of whether the ecommerce market will survive for long has been a debatable discussion for a few months, especially in the pandemic situation. Therefore, in this blog, we will be discussing and getting to a conclusion based on expert suggestions, whether the ecommerce market will survive for long or if it would be vanquished. Read on and serve your curious brains!
So, will the ecommerce market thrive through the pandemic?
Let’s start with the initial phase of the pandemic.
With lockdowns in place and many stores being shut down, more consumers started shopping online for the first time in new ecommerce niches such as groceries and household essentials. However, a few risks were imposed as a result of Amazon’s extensive moves make the best out of the situation and take over the market shares.
The coronavirus pandemic has served a decent long-term boost to the ecommerce businesses that were functioning during the rocky economy. On the other hand, the ecommerce giant, Amazon, seized the pandemic into favorable circumstances to grab more market share, while the coronavirus threat is still expected to prevail in the holiday season when more and more consumers shall be purchasing online.
It is an obvious fact that with the lockdowns and the restrictions in effect, people spent almost all their time surfing through the internet across various platforms for multiple reasons, including online shopping. However, the fast-descending stock market and layoffs can possibly minimize the short-term sales profits, especially for unrestricted products. You might ask how losses of jobs or reduction in salaries affect the ecommerce market. Let us explain, consider that you have a 30% loss of payment; would you want to purchase an additional pair of sports shoes after having to spend your money on the surging product prizes? We suppose, your answer is an obvious no!
Our professional experts have determined that online shopping shall get a kick-start with the rapid lifestyle changes eventually being forced on consumers due to the coronavirus pandemic.
Now let us look into the worldwide development in the ecommerce market!
According to recent research, the COVID-19 pandemic shall induce a rise in online holiday revenue by $40 billion over November and December 2020. Before the pandemic situation, such a boost in online holiday sales was never expected. With this ecommerce shift, offline sales, on the other hand, are estimated to fall by 3.7% per year.
With the stay-at-home conditions throughout the globe, social media usage has significantly risen. However, the percentage of increase in social media usage was reported to be a decent 3.3% in 2020 which was predicted to be 2.5% pre-pandemic. Although people of all age groups were seen using Social media like never before, the majority of the users aged from 35 years and more.
Nevertheless, the coronavirus pandemic has forced many ecommerce brands, from small-scale businesses to the established ones, to pivot their ecommerce strategies for 2020 to comply with the continuously evolving consumer behavior.
Another estimate found that over 36% of shoppers purchased online per week since the rise of coronavirus from only 28% pre-pandemic. According to the US Department of Commerce, customers spent more than a whopping $212 billion on ecommerce between April 2020 and June 2020. The ecommerce sales in the US quarter-over-quarter were only 2.4% during the first three months of the year, and this has increased up to 16.1% in the comprehensive US ecommerce sales. These stats may clearly give you an estimate of the overall growth of the ecommerce market across the world.
Researchers have confirmed that although the shift toward ecommerce was taking place pre-COVID, the consumers’ shift towards ecommerce has ascended by over 5 years. Before the coronavirus wave, Amazon, the ecommerce giant had estimated revenue up to $81.2 billion. However, in order to keep the employees safe as well as the customers happy, Amazon had to allocate an additional $4 billion after increasing the number and speed of deliveries and prioritizing the essential products. Amazon also increased its grocery capacity by a whopping 160% amidst the COVID-19 pandemic.
Online retailers may experience enhanced ecommerce sales if the coronavirus pandemic situation continues to remain the same for a while. With the continuing spread of the virus, consumers may set back from stepping out to shop from their retailer shops and malls. This may lead to an increase in the number of shoppers opting for ecommerce shops.
Our Verdict
The estimations of the future of the ecommerce market do not come with probable solutions and timelines. However, the creative falling of offline retailing can open doors for both threats as well as opportunities for the ecommerce market. Determining how to proceed with the upcoming situations, trends, and consumer requirements, along with keeps products in stock are the things you must keep in mind to follow if the coronavirus outbreak continues for a longer time. Focus on a few essential factors such as digital marketing, transparency, and ensure that your marketing game is above par to get your competitive advantage! And, to serve those curious minds, our answer is as evident as this blog:
Yes! The Ecommerce Market is to Survive and Stay for Long!
