The Impact of Coronavirus on E-Commerce
Published on March 28th, 2020
The novel coronavirus pandemic has affected more than 190 countries globally. The global economy is experiencing a plunge during these difficult times. Yet, the impacts of Covid-19 on the eCommerce business is diverse.
The current situation has affected every aspect of our lives and several businesses are struggling to depreciate the devastating effects of this virus. But each situation has both positive and negative aspects. This article will discuss both these perspectives emerging in the wake of the current global health emergency.
Impact of Coronavirus on E-commerce Industry
The e-bussiness industry has helped people that are locked down in their houses to shop for their needs without leaving the comfort of their houses. But during the economic global crisis, the potential buyer’s ratio has declined significantly.
Nowadays, potential buyers prefer stuff that is mandatory rather than going for luxurious items in the wake of the global crises. According to recorded stats, the number of e-commerce worldwide sales has increased at a pace of 32.6%.
It was observed that during the early days of the pandemic, shoppers preferred buying medical items, mandatory food items, medicines, etc. But after a few weeks of staying at home and spending so much time on the internet, some people are resuming their normal shopping routine.
The Covid-19 has opened the doors for ecommerce retail business the E-Commerce Store Survival Strategy During Coronavirus Lockdown to avail this opportunity and attract consumer’s attention to improve sales by providing people what they need.
Positive Impacts of Coronavirus on E-commerce
The closure of brick and mortar stores has made it impossible for people to go out and shop essentials. That has resulted in increased web traffic and an increased conversion rate.
The ecommerce webstores help people in the provision of supplies and products at their doorsteps. During the current global health emergency, a few online businesses have flourished as these products are high in demand nowadays.
The novel coronavirus spread has immensely changed the lifestyle of people and has also brought a lot of businesses to halt. But at the same time, it brought positive aspects and many opportunities for some types of business. Among these business genres, the profitable e-commerce business is at the top of the list for some specific categories.
The approach and attitude of buyers towards online ecommerce platforms has been widely affected by the recent virus breakdown. People are focusing mostly on buying items falling under these three categories which are Health, Wellness, and Safety.
Products with the Highest Sales During then Covid-19 Breakdown
The health-related item’s sales have increased to a whopping percentage during the last few weeks. This is because Coronavirus is contagious and its spread can be avoided by using certain medical supplies like wearing face masks, frequent use of sanitizers and soaps and similar items.
The best ecommerce stores have updated their ecommerce products according to the growing needs and demands of people.
The sales of face masks have increased by 590% as compared to the previous week, hand sanitizer sales have improved to 420%, wipes 184 %, disinfectant s 178 %, gloves 151% and similar trends were observed in the sales of packaged water, vitamins, tissues, hand soaps, toilet, and paper towels.
In addition to these items, several people are also stocking up medicines amid the coronavirus outbreak as a precautionary measure. According to stats, the sale of medicines for cough and flu has surged up to a whopping percentage of 198%. Pain killer’s purchase has also surged up to 152% and other medical supplies have also increased in sales.
The lockdown imposed by governments of the affected states has made it evident that the people will prefer online shopping over traditional methods. Groceries and utilities are mandatory for each household and the availability of e-commerce app development in providing home delivery for grocery items has made it easier for people to get a hold on such items.
As the majority of people are working from home during the current scenarios the digital marketing strategists have observed an increase in the email open rates and download rate of ecommerce shopping apps as well. It has become extremely important for eCommerce businesses to adapt to the changing scenarios and focus on effective email marketing strategies.
People are taking out more time to open promotional emails and read them as a result of which improved conversion rates of email marketing have been achieved recently.
Upcoming Celebrated Days in Lockdown
The celebration of upcoming and recent events in lockdown such as easter, etc will also imprvove eCommerce sales. Rather than visiting people physically, online presents and services were availed due to the ongoing global pandemic.
Challenges faced by Ecommerce amid Covid-19
The Covid-19 pandemic has affected most of the industries due to the unavailability of the workforce at factories. The current scenario requires people to stay locked up in their houses due to the threat of getting infected.
The e-commerce and e-bussiness industry is the least affected business due to coronavirus due to the surge in the number of people being online nowadays. But this industry is also facing several challenges to cope up with the increasing demand to supply ratio.
Some online retailers such as apparel stores, traveling, and tourism, luxury items have faced the most backlash as people are focusing on buying essentials only during this crisis. Other industries that are suffering the most include the entertainment industry, restaurant sector, events, etc.
The negative aspects and challenges faced by online stores during the current health emergency are discussed below:
Coronavirus has caused one of the biggest economic setbacks of this century. With factories and businesses being shut down and people being unemployed, experts have predicted that the negative impact of this pandemic is far worse than expected.
The global economic crisis has a direct impact on the ability of people to buy stuff as a result of which the e-commerce purchase rate is also undergoing a great loss. The buyers prefer ordering products that are essential rather than ecommerce shopping for luxurious items.
Disruptions in Supply Chain
The supply chain has been negatively affected due to the current global health crisis. As people are not encouraged to leave their homes, the eCommerce industry has to rely on their already manufactured supplies which can run out anytime due to increased demands.
The online stores selling essential goods and health supplies are at risk of running out of stock failing to meet customer’s demands and requirements, impacting the reputation of online stores.
Uncertain Stock Demand
The lockdown has affected all aspects of human life. Due to the high demands of supplies and goods, people congregate to multiple online stores and order stuff thinking that the store may be facing a shortage of supplies.
Once their orders are confirmed from a certain store they cancel other orders which have led to uncertain stock demand for eCommerce businesses. These fluctuations of ever-increasing and decreasing demands and supplies result in businesses suffering from uncertainty.
Customer and Employee Safety is at Risk
Every business wants its employees to stay safe during the current pandemic. The travel ban and lockdown imposed is due to the threat because this virus spreads when people are exposed to social interactions.
To meet the demands and provide enough supplies to the consumers, the workforce at different eCommerce businesses performing responsibilities that can be handled remotely is at risk of contracting the virus.
People receiving packages of goods and supplies on the premises of their homes are also at risk of getting infected by touching the products being delivered.
The Peak in Website Traffic
The surge in the number of online users has increased the website traffic immensely. It is also very challenging for eCommerce websites to perform their best irrespective of the high number of users accessing their website at the same time.
If the online store crashes or undergoes technical issues during the high traffic zone then the e-commerce business can suffer and it can have an extremely negative impact on the brand impression as well.
The ecommerce marketing strategy is also being affected due to cancellation of promotional events and advertisements.
The global travel ban has made it impossible to order supplies from out of country online stores and retailers. This has led to a downfall in the number of users accessing the website and the number of potential customers as well.
The impact of the novel coronavirus outbreak on each and every aspect of our lives cannot be ignored. Like other bussinesses the web and mobile ecommerce industry has also faced several negative and positive ascpects. For more information on E-Commerce Store Survival Strategy During Coronavirus Lockdown.