COVID-19 and E-commerce businesses: The good and the bad.

Hey and welcome to my second blog post! If you read my last post you would be up to date on the concept the digital marketing and how beneficial it is for e-commerce businesses. There is no doubt that COVID-19 has severely impacted the world in numerous ways, but today I’m going to discuss the impacts it has had on e-commerce businesses, both good and bad.

First of all, I’d like to address, acknowledge and commend how well businesses both online and instore have risen up to the challenge of these trying times, doing their best to continually develop and sustain their place in the economy. There is no ‘how to’ guide on a global pandemic so the best that can be done is focusing on opportunities that may exist amongst the chaos and working on solutions for any problems that may arise.

(Image Sourced From China Daily, 2020)

There aren't many who would say they've benefitted from COVID-19... AT ALL but, the e-commerce industry has seen some benefits from what has been a terrible time in every other way. Let’s keep it positive and look at the silver linings of this pandemic by discussing the opportunities that COVID-19 has created for e-commerce businesses. This pandemic has negatively impacted industries such as travel, brick and mortar retail stores and hospitality but, has caused e-commerce businesses to thrive. As most people are avoiding leaving their homes and having to attend crowded places, the next best option is shopping online, whether that be for groceries, clothing and anything in between.

I’ve inserted a graph below with data retrieved from Logical Media Group Google Advertising MCC. The graph shows the percentage of increase in online purchases and online revenue for each category during March and April of 2020. (Kwiat, 2020).

(Logical Media Group Google Advertising MCC, 2020)

So, it’s obvious that consumers embracing social distancing measures and closure of brick and mortar stores has led to a large increase in online sales, especially when it comes to buying groceries. This will have lasting effects, providing opportunities for e-commerce businesses to grow even more looking forward. There's nothing I love more than a good list, so let's make a list of some of the opportunities COVID-19 has provided/ will provide for e-commerce stores.

Current and future opportunities for e-commerce during COVID-19:

Shopping Alternative: Due to closure of stores and social distancing rules, consumers have no choice but to shop online.

Potential to gain new customers: Consumers who wouldn’t usually shop online can experience the convenience that it brings, making them more likely to opt for online shopping for future purchases.

Work opportunities: marketers will receive more work opportunities helping businesses to adapt new strategies to utilise COVID-19 and achieve growth and success in this time.

(Johnson, 2020).

While it may seem that the e-commerce industry is blooming in the age of COVID-19, there are also some significant challenges that exist for online businesses during this time and it is important to note that the lasting effects of the current success depend on how capable businesses are and if they are able to reach demand. (Kingston, 2020).

Challenges for e-commerce during COVID-19:

Supply chain issues: manufacturers are being closed down and unable to continue to produce and supply to businesses.

Product Shortages: businesses are unable to receive stock due to supply chain issues.

Decline in consumer demand: there has been a large loss of jobs and lowered income for many therefore, although consumers are opting to shop online as an alternative to instore, some are now spending less. As well as this, there is a chance that the economy will weaken further or go into recession.

(Sterling, 2020).

Like all businesses at the moment, the e-commerce industry is living in flux and uncertainty of what is ahead. 2020 has been our most unpredictable year to date and there may only be 4 months left but who knows what could change or what is next in store for us! Regardless of what is to come, I’m almost CERTAIN that if we can handle this pandemic on both a personal and professional/ business level, than we can handle anything so, BRING. IT. ON.

Talk to you on my next post,

Claudia.

#digitalmarketing #ecommerce #covid19 #coronavirus

References:

Johnson, G (2020) “9 e-commerce strategies that will dominate the COVID-19 age” (online). Available at: https://www.perrill.com/9-e-commerce-strategies-that-will-dominate-the-covid-19-age/ (Accessed 14th August, 2020).

Kingston, H (2020) “Is e-commerce the safest industry to be in during the COVID-19 pandemic?” (online). Available at: https://www.smartcompany.com.au/industries/retail/is-e-commerce-the-safest-industry-to-be-in-during-the-coronavirus-pandemic/ (Accessed 14th August 2020).

Kwiat, A (2020) “Case Study: The Impact of Coronavirus on Digital Marketing & Ecommerce” Illinois Technology Association (online). Available at: https://www.illinoistech.org/news/509975/Case-Study-The-Impact-of-Coronavirus-on-Digital-Marketing--Ecommerce.htm (Accessed 14th August, 2020).

Sterling, G (2020) “Coronavirus and e-commerce: It’s complicated” Marketing Land (online). Available at: https://marketingland.com/coronavirus-and-e-commerce-its-complicated-277480 (Accessed August 15th 2020).