The year 2020 has proven to be disastrous for many industries as businesses across the globe suffered a major setback. However, the one industry that has flourished despite the ongoing pandemic is the ecommerce industry. Despite the ongoing pandemic, certain ecommerce businesses have been able to report significant gains.
From empty shelves in grocery stores to panic buying of toilet paper rolls, this year has been quite a rollercoaster for businesses. While brick and mortar shops had to close down their business due to the lockdown, ecommerce companies continued to thrive.
The closing down of all the local stores forced even the harshest critics of ecommerce to use web shops for buying everything from vegetables to personal care items. A business that didn’t have an online channel had to experience huge losses, while the ones with an online store were able to earn great profits.
Some of the reasons why ecommerce stores reported gains are doorstep delivery, online payments, and the overall ease of online shopping. The contactless nature of the ecommerce industry worked in its favors.
Despite the cloud of uncertainty hovering over businesses worldwide, ecommerce companies are experiencing steady growth as more people have started shopping online. Here we’re evaluating the various ways in which ecommerce businesses have been affected by COVID-19.
Change in Consumer Buying Pattern
The ongoing pandemic has altered consumer buying behavior to a great extent. During the month of March, countries worldwide declared lockdown that prevented people from stepping out. The Coronavirus-induced lockdown made people shop online and get their products delivered to the doorstep.
Even though the lockdown phase is over now, a majority of customers still prefer online shopping as it offers the ultimate convenience during these unprecedented times. However, markets have reported a dramatic change in customer buying patterns.
From panic buying to hoarding, consumer buying patterns during COVID-19 have been extremely different. Bulk buying is trending all over the world as people want to stay prepared for all types of uncertainties. Ecommerce businesses have started offering products in bulk to promote this trend even further.
When the news of Coronavirus staying on the surface for hours broke worldwide, the safety issues of ecommerce businesses took the centre stage. The fact that a shipment passes many hands before arriving at the doorstep of the customer made most people hesitate from placing online orders. To ensure proper safety, ecommerce businesses are taking a host of preventative measures.
Performance of Different Product Categories
The ongoing pandemic has brought a dramatic change in consumer behavior. The demand for common product categories such as electronics, luxury items, groceries, etc., has changed and it is essential for a business to be aware of these changes to make informed business decisions.
Ecommerce companies offering groceries online have reported a serious surge in sales. Due to the Coronavirus outbreak, more people have started ordering groceries online, as going to the physical store puts them at the risk of exposure.
2. Food and Drinks
The Coronavirus-induced lockdown brought the entire restaurant and dining industry to a halt. As a result, businesses started going online to be able to survive. Even after the lockdown phase is over, more people prefer dining in than going out as it is safer. As a result, the e-stores offering foods and drinks are reporting gains even during the pandemic.
3. Health Products
The COVID-19 crisis has led to a significant change in the online demand for health and safety products. Earlier most customers preferred buying from brick and mortar pharmacy stores. The demand for hygienic items and face masks has surged significantly and e-pharmacies have been able to report profits due to this change in consumer behavior.
4. Electronics and Gadgets
The demand for electronics and gadgets also increased. Ecommerce businesses offering house appliances and other electronics reported profitable gains. With more people working from home, the demand for electrical items rose by ten folds.
5. Fashion Items
Unlike other categories, the market for fashion items has suffered huge losses. As per the recent market reports, the ecommerce businesses catering fashion clothing items and accessories have suffered a major setback. The consumer focus has been on daily essentials and electronic items rather than fashion products.
During these unprecedented times, it has become critical for ecommerce businesses to evolve and offer top-quality services in a safe manner. From enhancing the safety measures taken while shipping products to offering items in bulk, there are plenty of ways in which an ecommerce business can continue to thrive.
If you’re planning to take your business online by building an ecommerce store, then you should use the services of a trusted mobile app development company that can help you build a mobile app for your business. It is wise to change as per the times and take your store online to connect to a wider audience.