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The Impact of COVID-19 on eCommerce

The COVID – 19 global pandemic is one of the defining events of 2020, with

implications that may be seen throughout the decade. The entire world is on

lockdown, and the day-to-day lives of people have come to a standstill. The

concept of work from home is gaining popularity due to the lockdown. Retail

businesses are affected to the extent that many of them have closed

temporarily or permanently. The shopping behavior of customers changed

overnight. There is a change in what they are buying, when, and how. Many

businesses are trying to leverage an online shopping platform’s benefits by

approaching top eCommerce development companies to create their

website. However, before discussing the impact of COVID – 19 on the

eCommerce industry, it is essential to understand the concept of panic

buying in times of pandemic.

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top ecommerce development companies

Panic Buying & COVID – 19

When WHO declared it a global pandemic, people worldwide reacted by

stocking up on things. The retail stores soon ran out of medical supplies like

masks and hand sanitizers and household essentials like toilet paper. They

didn’t have enough stock to fulfill the demand. Now, why did people react in

such a manner? Well, humans respond to a crisis in different ways. When

faced with an uncertain situation, they try to do whatever it takes to feel in

control again.

Retail therapy is a response to different types of personal crises. But in the

case of a pandemic, there is more to it. For instance, with COVID – 19, there

is a lot of uncertainty, and people are receiving contradictory information

from multiple sources. So, when people hear things from numerous sources,

they tend to over-prepare rather than under-prepare. The second factor is

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top ecommerce development companies

the crowd mentality. Looking at other people stocking up items and scarcity

of necessary products contributes to validating stocking up.

Now that the concept of panic buying is clear, it will be easier to understand

the Shift in the eCommerce industry due to COVID – 19.

The Shift in the eCommerce Industry

As the physical stores face a shortage of supplies and people are asked to

stay indoors, it has resulted in a surge in online shopping. Research by

Business Insider Intelligence and eMarketer analysts suggests that 74.6% of

US internet users will now avoid going to the shopping centers or malls as

the outbreak worsens. There is an exception here too. Only some

eCommerce stores have seen an increase in their sales while the rest are

either stable or facing a decline in sales. The sales of essential products like

hygiene and food supplies have increased, whereas luxury items’ purchases

decline.

Increasing Sales of Online Grocery Stores

The lockdown situation across the globe has forced more and more people

to stay at home. More people are turning to online grocery stores for their

supply of essential food items. As per Adobe analysis, the sale of canned

goods and shelf-stable items like rice, oatmeal, pasta, etc., has increased by

69% and 58%, respectively. The reason is quite simple. These items are

commonly used in emergency preparation.

A Rise in Demand for Personal Protective Equipment

Both medical and government authorities are urging people to maintain

hygiene and not touch their faces. As people follow all government norms,

there is a rise in demand for protective products like masks, sanitizers, and

gloves. Offline retailers have a tough time to fulfill the increasing demand for

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top ecommerce development companies

protective products, so the millennials chose to purchase these products

online. As per WHO, approximately 89 million medical masks are required

each month, the demand for examination gloves is 76 million per month,

and for goggles, it’s 1.6 million per month.

The surge in Medical Estores

There is a wave of panic among the people as they have to stay indoors

inevitably and self-quarantine if there are minor symptoms of COVID – 19. As

this is engraved in people’s minds, they are stocking medicines as a

precaution. The analysis of eCommerce transactions by Adobe reveals that

the sales of cold, cough, and flu medicines have risen to 152%.

Innovation in eCommerce

Innovation can be the much-needed ray of hope in the times of COVID – 19.

Humans can adapt to the challenges that come their way and find new ways

to solve them. As the disease is contagious, it forces innovators to develop

new ideas where social distancing is maintained. This is a time where

industry giants are exploring the possibility of drones and robots to deliver

products. It may take some time to realize and use these things’ capabilities

entirely, but it will be a revolutionary change in the eCommerce world.

Final Thoughts

To sum up, it can be said that as the world is struggling with COVID – 19,

consumers are forced to change their shopping behavior by purchasing

online. It is a benefit for the eCommerce industry, and they can really tap on

this opportunity, but only if their target audience can easily find them. The

eCommerce industry will have to use new marketing strategies as per the

current scenario. Still, they need to continue implementing their SEO tactics

to remain visible to their target audience.

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top ecommerce development companies

In the long-term perspective, COVID – 19 will irreversibly change the method

of business and how they compete in the upcoming decade. It remains the

responsibility of eCommerce entrepreneurs to understand and fulfill their

customers’ needs without burning a hole in their pockets. This will help

them earn the trust of their customers. Last but not least, in this uncertain

scenario, there are still opportunities. It will take a slightly different mindset

and approach to achieve the desired profitability for an eCommerce

business.

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