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Coronavirus – Impact of Global Pandemic on the eCommerce Industry

COVID-19 is also known as coronavirus. We all know that this deadly virus is affecting the lives of numerous people. Additionally, due to this deadly disease, the travel and tourism industry, along with the sports industry and others get affected diversely. Now, the question is, is this deadly disease bothering or affecting the E-Commerce industry also? Well, here we are going to take an insight into the situation of the e-commerce industry in this time of coronavirus.

The outbreak of COVID-19 coronavirus has affected global business growth. Even, there are several significant shifts have been seen in the stock market. Not only this but also the Organization For Economic Cooperation And Development have also given the statement that this outbreak of coronavirus has proved to be the biggest threat to the global industry since the financial crisis of the year 2008.

According to the report of world meters, since 16th March, then a number of coronavirus cases have risen terrifically, and the death toll is also massive. After the first case in Wuhan China, the situation is getting worse day by day, and even almost every country is getting affected by this deadly disease.

As we have stated above that due to this disease, the global business has been deteriorated diversity, and it is, directly and indirectly, affecting the E-Commerce industry as well. Now the question is, how? Well, you must be thinking that the E-Commerce industry works in the digital world and how any deadly disease can affect the virtual business. However, the E-Commerce platforms directly run on the basis of physical business through the supply chain. E-Commerce is basically a medium that brings the customer closer to the products and services that they are not able to get or find nearby. Hence, that is by the shutdown of factories and supermarkets, is affecting the E-Commerce industry a lot.

For the last several years, according to the report, China is one of the largest e-commerce markets in the world, having the online sales of USD 30 7.4 billion in the year 2018, and that has been increased by 35.4 % over the years.

Since China’s factory shutdown, business at the global level is continuously suffering. Even the global supply chain has been disrupted, and due to this, there is a big change that resulted in the E-Commerce industry as well. The retail industry is getting impacted by this outbreak negatively, and more and more people are choosing online shopping, even for their daily needs. As per the advice given by the government, people are avoiding visiting the public places for purchasing even the slightest or smallest staff. As per the Coresight Research survey done in February 2020, the consumers in the United States are shrinking from shopping malls, theatres, restaurants, and shops and heading towards the E-Commerce platforms for purchasing their stuff.

Nowadays, people are relying on the online market, even for their daily needs. They are willing to purchase tea leaves, coffee beans, or cloth or even expensive gadgets; they prefer to visit online stores.

Just a small disturbance in the supply chain, and everything gets on the verge of loss. And that is the main reason; the e-commerce market is also under the high pressure of fulfilling the customer requirements. Additionally, considering the same, people are heading towards E-Commerce platforms and hiring professionals from Magento Development Company so that they can help them in being in the competition and starting their online stores.

Let’s take a look at the impact of global pandemic – Coronavirus on the E-Commerce industry.

The Basic Necessities In This Outbreak Of Novel Coronavirus

The major consumable items and stuff like sanitizers, disinfectants, medical supplies, masks, and temperature-stable consumable items are the most required by the individuals. Even every second person is sanitizing himself, and demand for these products in the market have increased massively either online or offline. Additionally, the government has shut down the pubs, shopping malls, movie theatres, and all other places where people can easily gather. The major motive of shutting down the place is to avoid the spreading of this deadly disease, and also, people are automatically avoiding such places because they want to be healthy and safe. Of course, everyone loves their life.

A few weeks ago, there was a high demand for these products in the shopping malls and supermarkets. But now nearly people are visiting these stores and just opting the online purchasing methods. Although this is a great devastating situation for the super malls or markets, it is still good news for the E-Commerce platforms as the demand for the product has been increased there.

The total online retail spending in 2019, Q4 was around 11.4%. Additionally, it is expected that it will increase by 12% and more after the outbreak of this deadly disease. Even, there is a high demand for health-related products on online platforms like Amazon. Even, there has been an increase of 52% in sales as compared to the last year, and also the number of online shoppers has also been increased by 8.8 % after this outbreak of coronavirus. Not only has this, but the sales of health products been constantly increasing on the online E-Commerce platform.

After going through the above-given information, you must get excited. But hold on, this is the point where you are needed to start worrying as they have already stated that the E-Commerce platform directly relies upon the physical supply chain. And of course, the biggest online supply chain in China. Now all you need to do is to connect all the points. The demand is height, but the supply is low. Even you will find out of stock tag on most of the online platforms. The question is, why?

According to the New York Times, the hundred million stock-keeping units (SKU’s) of Amazon are also not able to maintain the supply of the goods. Due to the indistinct production timeline, delay in the deliveries, and the effect of the supply chain, the businesses that are dependent upon the Chinese manufacturers are facing many consequences. Now let’s think about the solution. Is there any alternative available that can help in solving this problem? Do we need to wait till the end of this COVID-19 break? There are several questions that are required to be answered. However, there is no particular answer available. But still, it is necessary to remember that each and every problem has some specific solution. It is important not to leave the problem an address.

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Written by Dinesh Dhiman

Passionate writer & loves to write on technologies, especially iOS, Android & CMS Platforms.

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