E-commerce grew rapidly amid the lockdowns and restrictions triggered by COVID-19 in 2020, with the benefits of lower prices, accessibility, and convenience, as well as the availability of wider choice.
In a poll conducted by Verdict to assess if COVID-19 will permanently increase e-commerce sales, a majority of 86% of the respondents foresaw a permanent increase, while the remaining 14% voted otherwise.
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The analysis is based on 328 responses received from the readers of Verdict network sites Electronic Payments International, Retail Banker International, Cards International, and Private Banker International between 04 August 2020 and 29 March 2021.
COVID-19 impact on e-commerce
COVID-19 has increased the online shopping trend even for essential products including groceries, pharmaceuticals, and hygiene products, predominantly through third-party online marketplaces. Amazon and Alibaba were the top two global retailers in the third quarter of 2020, according to GlobalData.
Several issues need to be addressed, however, in order to increase the e-trade readiness of the e-commerce ecosystem, including disruptions in the supply chain and logistics, higher transport and delivery charges, as well as accessibility and affordability of the internet, according to the United Nations Conference on Trade and Development (UNCTAD). The pandemic has catalysed the co-operation between the public and private sectors although channelising investment for e-commerce businesses has remained to be an obstacle, added UNCTAD.
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By GlobalDataCOVID-19 is also changing the consumers’ buying pattern towards bulk-buying and essential buying amid the imposition of repeated lockdowns. Likewise, brands are adapting to address the requirements of consumers. e-commerce companies are working to enhance the site-search experience for consumers with more personalised information and improving the opportunities for small businesses to sell more products and remain relevant during the pandemic and beyond.
