Understanding the Impact of Covid-19 on the E-Commerce Industry.
The ongoing coronavirus pandemic has impacted all parts of our lives. Whether it is the places we go, the things we spend time on, or the way we buy things, for now, all of these have changed drastically. Also, social distancing has become a necessity – some stores have closed creating a lot more online shopping and restaurant curbside pick-up orders. This is where E-Commerce has proved its worth.
If we talk about the long term ramifications for the market, advertising, and E-Commerce, traditional businesses are facing a pretty depressing situation. However, there’s definitely a noted increase in digital consumption.
Luke Gowland, a Thematic Analyst at GlobalData, says, “COVID-19 has given the e-commerce sector a boost, with online grocery retailers the biggest beneficiaries. Supermarkets are experiencing an unprecedented demand for home grocery delivery. GlobalData expects the UK online food and grocery market to grow nearly 20% in 2020 to £13.2bn.”
Further, according to Forbes, the Internet hits have surged by 70% and streaming has also seen a jump by 12%. The surge in web usage during this time is because of the mammoth change in consumer behavior. People are spending maximum time online, looking for both entertainment and products/services on the web to make their lives easier.
How E-Commerce Can Help Local Businesses?
If we look at the current E-Commerce trends, there has been a 40% increase in E-Commerce revenue.These trends show a massive change that will remain for a long time; still, it will be difficult to predict the full impact of COVID. But, one thing is for sure, online sales will grow; however, the intensity of results will witness a change in time. Most of these permanent changes will depend on the industry niche, changing consumer behavior, and social distancing. Let’s look at some more trends that seem to be benefiting businesses in times ahead:
Diversification in the product line
As the consumer lifestyle has changed, there is a change in consumer behavior and shopping habits. To stay competitive, local businesses are trying to take advantage of the current scenario by diversifying their line of products and services. Moreover, they are altering their delivery models to offer curbside pickup, or digital versions of the services to meet consumer demands.
Opportunities to attract new customers
People are frustrated due to the hassle of dealing with crowds and inventory shortage. Businesses can use it to their advantage by starting a virtual business model. They can provide their services online and meet consumer demands, such as online grocery services.
People are already finding this option convenient as they can easily follow social distancing and there’s less hassle involved. Looking at the current trends, it is going to remain for a long time. You can take your local business online and reach a large chunk of new consumers to stay competitive and market-relevant.
24/7 availability for business advantage
As a result of increased uptake of online shopping on the part of consumers, many businesses have taken much of their brick and mortar business online. According to a survey by eMarketer, the U.S. will see a projected growth of 2.8% in 2020. It is indicative of the fact that it is going to persist for quite a long time. We are sure to see a long-term trajectory of E-Commerce growth post-COVID.
Local businesses can take advantage of the situation and come online. It will give them breathing room to thrive in such challenging situations ahead. They can be right where their consumers need them as they are open 24/7. People can place their orders anytime and finding your brand in this great depth of the internet is easy for them.
Final Word
We cannot predict the magnitude of COVID-19 impact and how long this change is going to persist. However, we can still realize the big change that is coming due to the widespread digital transformation. The time has come to make adjustments in response to the current shift.
If you also have a small business that is struggling to sustain in these tough times, take the help of digital media and the E-Commerce revolution. We will help you out in making a high-value online presence, contact us here to get started.
