“How are you managing to get all the monthly groceries with supermarkets closed?”
“I now buy online following all the COVID-19 restrictions.”
E-Commerce growth across the world
COVID-19 has caused a dynamic impact on the e-commerce landscape.
- In April 2020, US retailers’ online year-over-year revenue growth saw a massive surge of 68% from 2019.
- Online transactions in The UK boomed from 15.8% to 23.3% during the Covid period.
- China’s online market rose from 20.7% to 24.9%, Australia 6.3% to 9.4%, and Singapore went from 5.9% to 11.7%
- The people of Thailand downloaded online shopping apps giving a whopping 60% rise to the e-commerce industry in just one week.
- Argentina’s online marketplace Mercado Libre doubled its sale during the second quarter of 2020 compared to the sales margin during the same period the previous year.
Impact on small and medium-sized businesses
Most large businesses already had e-commerce websites, but the most significant shift was seen in small merchants taking their businesses online.
Though online buying rose about 6-10% across most product groups, small and medium scale industries producing consumer goods such as food and beverages, shelf-stable goods, health and safety products were able to boost their online businesses the most. According to a Canadian study, 67% of small businesses made arrangements for accepting online payments compared to the 47% who were providing online services before COVID-19 hit the world.
Covid impact on consumer behaviour
Surveys of the International economic market in various countries show a growing interest among consumers in purchasing through the website.
Statistics show that mobile devices have been used the most for shopping during the Covid-19 spread, with 72% of customers using smart devices to shop online. It has been reported that 24% of men shopped online more frequently than 18% of women. Men found it convenient to utilize online purchasing options such as the BOPIS services (buy online, pick-up in-store) along with subscription services and curbside pick-up.
Generation-wise, 30% of millennials shopped online more frequently compared to 24% of Gen Z, 20% of Gen X, while Baby Boomers’ share is only 8%.
Now that the difficult time is over, experts say that this elevated dependence on e-commerce is here to stay for good. People who previously preferred in-store purchases have now realised the benefits website shopping brings. Not only is it convenient, but low prices driven by high competition is a driving factor in e-commerce’s increasing popularity.