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Are eCommerce Platforms Being Affected By The Coronavirus Lockdown?
It was around four months ago when China first declared the spread of the viral disease, COVID-19. Since then, it has taken over the entire global population, gaining casualties with each passing day. As people shut their doors to contain the spread of the virus, the world is seeing economic disruptions and business shutdowns. The global market is seemingly slowing down, but not quite. As some areas of business struggle, others are dwelling on the opportunity the pandemic has presented to them, helping to keep the economy stable. One of such areas is the eCommerce platforms.
Even traditional businesses are now open to the ideas of shifting to one of the eCommerce platforms. People are not only considering this idea of turning into an online platform to limit the harmful impact of the virus on the global economy. Nielsen once talked about how consumers changed their behaviour in the U.S market following the outbreak. Before the outbreak, up to 50% of internet users in the U.S avoided shopping centres and malls. After the virus outbreak, over 74% shifted to buying through eCommerce platforms to stay away from crowded places. Hence, is it safe to say that eCommerce is rising?
Are eCommerce Platforms Solutions For All Industries?
As consumers turn towards eCommerce platforms for shopping, online retailers are seeing a positive impact of the outbreak. However, shipping delays have also increased, giving concern towards reducing supply chain issues to gain maximum benefit from the short-term opportunity. Digital sales are fluctuating between sectors as well. For example, spending on advertising has decreased and more focus is on online marketing now. People are also looking for online entertainment through streaming services such as Disney+, Netflix or Hulu.
Due to the pandemic, we can also see a rise in consumers investing in healthcare, and as a result non-profits and charities are also seeing a rise in interest. For businesses, they look for online experts to fight off the decreasing market and financial matters in these testing times. Hence, this market is growing by 23% as compared to February.
According to another report, office supplies have suddenly become interesting since people are shifting to work from home routine. Here, eCommerce platforms that are giving away video conferencing solutions are on the rise, such as Zoom, Slack and Skype as people look for online conferencing solutions.
Which Industries Are Getting The Hit?
By far, the travel & hospitality sector is the hardest hit by the pandemic. Experts are predicting a 15% year-on-year decline in travel ad revenue. The travel business is seeing flight and hotel booking cancellations along with minimal business. We also have the fashion & apparel business taking a major hit. The “Made in China” tag is not a good signal for the masses, as they shift to locally manufactured brands, which is a minor part of this sector.
Opportunities for eCommerce Platforms?
Online services will flourish as the lockdown proceeds. People avoiding crowded or public places mean that they will continue their usage of the internet for video streaming and movie watching. Hence, streaming companies and conferencing applications are a great opportunity. Consumers will again continue their dependency on online markets. Markets providing discount deals and bulk packages, have a good chance of attracting consumers and customers. Advertisers can also earn only if they look towards online solutions and modern methods of marketing. If they alter campaigns to the current environment then results can turn fruitful.
Coronavirus has surely impacted eCommerce platforms in one way or the other. While we are seeing fluctuating results throughout the global market, one thing which remains true is the friendliness of your business to shift to online platforms. Perhaps those who fit themselves well inside the world of the Internet will continue to see their profits rise.
InvoZone has always stressed on the need to building an online platform for the best interest of your business. Let’s discuss how we can make this possible!