How eCommerce is Affected by COVID19
- eCommerce

How eCommerce is Affected by COVID19

Coronavirus pandemic has gripped the economy of various nations. With the bull-whip effect being realized across numerous sectors, it is interesting to see how e-commerce is affected.

E-commerce is a growing business sector estimated to grow by more than 15% in the upcoming years.

With the advent of COVID19, it is now apparent that this sector has taken a massive hit like other affected businesses. The pandemic hurdled the push that was needed in a positive direction.

As a result, the e-commerce sector is profoundly affected.

This article explores the seven reasons how e-commerce business is affected. Moreover, it will deal with how the e-commerce business can get back on track.

The situation of the e-commerce industry due to COVID19:

The recent COVID19 has hampered the growth of the e-commerce industry. One of the primary reasons for the same is a lockdown.

Lockdown resulted in a complete stoppage of the supply chain globally. It has forced the e-commerce industry to look for alternatives.

Yet, there is no such alternative to the supply chain. This is the biggest problem during COVID19.

The second important reason is fear among people. With the norms of social distancing across the globe, there is a fear amongst people about contact.

Contact-less shopping could be the reality, but there is news about surface contacts increasing COVID19 chances.

This has led to the people getting more aware of the situation and instead look for better options.

Even though digital payment has become a way out in many places, the growth of contact-less delivery has yet to come through.

Some of the significant results of such a situation have been looming profitability and an increased backlog in growth.

Reduction in the income of the people has resulted in the loss of disposable income.

As disposable income is lowered, it has become imperative that people meet their basic and essential needs first.

It has led to the negative growth of the e-commerce sector as people are not looking forward to ordering goods online.

Is it just about the delivery of the products?

Sadly, no!

Manufacturing of the products is hampered, too, due to the lockdown, which has resulted in increased accumulation of the products in inventory.

The increased inventory cost affects the balance sheet of the companies, which is impacting the valuation.

Is there a way out of it?

Honestly, this is the time for the best brains worldwide to crunch the best ideas, storm the toughest brains, and find a way out.

Thinking down the normal line of thoughts will not result in positive outcomes.

Moreover, the thoughts have to be more consumer-centric, with sustainability in the longer term.

The bigger problem is that the world will remain this way, and this is the new normal that has to be accepted globally!

Ways to grow e-commerce amidst the pandemic:

While the roads might seem foggy, only weather like this will help you learn to drive better!

This is the same thing that goes for the e-retail sector. Under this situation, it is time to leverage technology and understand the market sentiments.

Though not all is gloomy, specific sectors in e-commerce like grocery, medicines, food, and healthcare have seen a spike of close to 50%.

Thus, it becomes essential for product assortment and categorization by the e-commerce industries during a pandemic.

An introspective question is:

If a consumer has free cash, would he prefer to buy a luxury product like handheld smartphones or spend it on essentials?

Questions like these will help the e-commerce industry to grow in the right direction.

It is essential to understand that during this time, leveraging technology will be the best outcome.

It is needed to understand that digital marketing is a new way to understand consumer preferences. Moreover, data will be the most important weapon to grow the e-commerce business.

Another important thing will be the automation of the supply chain. It will be essential to get the operation hat back on and understand the products’ demand cycle.

The consumer-centric approach during this pandemic will be supportive as everyone is looking for empathy.

A trained team of individuals to address consumer queries and professionals with thinking caps to find a solution will be the right investment.

Taking the business remotely might sound difficult initially, but providing digital products can improve the consumer experience.

Bottom line:

There is always a new beginning to everything. It is vital to appreciate that the change is here to stay longer and capitalize on becoming the first mover.

E-commerce industries need to grow within this change if the proper synergy is met with the sector’s technological re-vamp.

Author Bio:

Hi, I am Subhajit Khara, a blogger and Electronics Engineer. Besides blogging, I like to play cricket and watch CR7 playing. You can reach out to me at

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