Impact of COVID-19 on the ecommerce market: Increase in global demand and popularity

COVID-19 has had an unprecedented impact on all sectors. Though people are getting used to the ‘new normal,’ things are not like it was before. Buying from supermarkets, malls, stores have become long-forgotten. People feel safer to purchase products from e-commerce websites than good-old means of shopping as they can avoid crowds and potential direct contact. According to the CDC, the chances of the virus spreading from product or packaging is minimal as they undergo temperature or environmental fluctuations. On the other hand, e-commerce apps have understood the safety concerns that the current situation demands and have changed their practices according to it. Most shopping cart design and development are revamped to follow the contactless delivery process and are only allowing transactions through digital payment modes.

COVID-19 has accelerated to the growth of the e-commerce sector

• According to Digital360, online spending with US retailers grew by 30.1%, resulting in $60.42 billion in profits in the first six months in 2020. From the year 2018 to 2019, the growth was just 12.7%.
• As per Statista, the global retail sector declined by 5.7% this year. The COVID-19 has been a boon to the online clothing sector, which has witnessed a growth of 76.7% in the Q1 of 2020.
• In Q2 2020, people in the US spend $1 for every $5 on online shopping. It shows the level of purchase online shopping sites have witnessed.
• The expenditure on e-commerce grew by 44.4%, which resulted in $202.72 billion spent during this period.
• Before COVID-19, people were mainly purchasing clothing and electronics via e-commerce apps. Now, the trend has shifted towards essentials like food and groceries.
• Though pandemic had resulted in the unexpected growth of apps like Amazon, Flipkart, Snapdeal, etc., the companies incurred additional expenses to inculcate the necessary safety measures for customers and employees. For instance, Amazon allocated $4 billion to ensure safe delivery for customers and the safety of the employees.
• In the UK, almost 35% of the population purchased using Amazon. A survey shows that the number of online purchases through e-commerce sites has tremendously increased in the post-lockdown period.

Unprecedented demand in the e-commerce sector

In order to become successful in any business, it is of the utmost importance to understand the customer’s mindset. The Coronavirus has shifted people’s attention towards the online sectors. Retail software development could be enhanced if entrepreneurs understand the reason for the demand in the e-commerce sector.

• Safety: People are extremely concerned about their safety amid COVID-19. As people are able to order the necessary products from the comfort of their homes, e-commerce apps have proven to be the best option available for them.
• Supply management: In April and May, e-commerce companies struggled to keep up with their demand; later on, they increased supply and number of delivery executives to promptly handle the surging demand.
• Discounts: Customers are able to get ample discounts on bulk purchases. There are various options available, and the custom shopping cart design is maneuvered so that customers can pick out the best deals in terms of quality and price, according to their preferences.
• Fresh products: When it comes to groceries and food products, people prefer farm-fresh products. For instance, there is a special category in Bigbasket for customers to order directly from the suppliers(farmers).
• Same-day delivery: Customers are able to avail same-day delivery and get the products instantly via online shopping portals. Emerging apps like JioMart are making it possible by delivering products from nearby supermarkets.

Future of retail stores 

• The emergence of e-commerce doesn’t necessarily mean that brick and mortar stores are diminishing. Instead, it can be stated that conventional shopping and online shopping are merging.
• Amazon has opened up retail stores in several cities such as Seattle, Los Angeles, Austin, and New York. Amazon’s brand products can be accessed through both retailer stores in selective places and apps nowadays.
• The popular department store, Macy’s is meeting customers’ demand through both retail stores and the online shopping portal.
• Certain stores offer store purchases through video calls, and payments are made possible through digital modes.

So, the e-commerce shopping cart software can match the business requirements for retail shops and online businesses as well. Depending on the business necessities, entrepreneurs can customize the shopping cart design to mirror the market trends and preferences. Hire shopping cart developers and upgrade your business to match customer expectations.

Author

Marketing is my soul mate and writing is my side kick. Using my writing skills to share the knowledge of app development and upcoming technologies.