Jul 22, 2020
Imbalance of fulfilling the consumer’s demand with respect to groceries and other essentials item has made the e-commerce industry into limelight due to the COVID-19 pandemic. As the people have two options either to visit the supermarket personally or to order their respective product via online.
它导致的流行数码e -commerce web platform like shipt, Walmart, Instacart, Amazon and many more as numerous people finds digital e-commerce services reliable and safe during this time. Almost every customers practicing social distancing rely on this home delivery service the most and are willing to continue this for the next time as well. This has also changed the shopping behavior of the consumers on the geographical level. For instance, it has been witnessed that as compared to U.S., countries like Germany, U.K. and Japan do lack in shopping criteria basically in essential food items and groceries. This can be due to the leniency of U.S. law towards this COVID-19
With respect to shopping behavior while purchasing the item, people have begun stocking the housing essentials including mask, sanitizers, toilet papers and others. This act has negatively affected the overall e-commerce industry to some extent as the companies are failing in fulfilling the huge demand. Thus, this results into an increase in the price of essential items in an uncontrolled way due to this panic buying pattern. It just looks like everyone has to be the leader in the ongoing race of purchasing up unnecessary and irregular items. Based on the gender, it has been noticed that men are less concerned towards the ill effect caused due to this Covid 19 but are active in online shopping. Not only in U.S. there is an increase in new users downloading the wholesale mobile app but it also has be seen an increasing trend from India too. From January 2020, there is almost 50% hike in users who have spent on online and e-commerce app. On the other hand, in South Eastern countries like Thailand, Malaysia and Singapore among others, it has been witnessed a decline in the conversion rates in e-commerce apps. To overcome this e-commerce companies are taking initiatives to shift the consumer behavior towards at a quick rate and have reached more than 1million users on the daily baisis
Changes in the revenue Across E-commerce
Figure: Change in E- Commerce spending (2020)
The e-commerce industry has been impacted on both demand side as well as supply side. Virus related products such as soap, sanitizes, mask, tissue and others has witnessed an enormous rise in demand. Due to the imposed of certain limitation, some companies are not able to respond the changes or adapt it quickly.
Apart from this, it has been witnessed a downfall in the sales of fast-moving consumer goods since this time. For instance, in 2020, as per the survey by Digital Commerce in March, out of 304 e-commerce retailers, around 36.0% believed that the business will face a considerable downfall. Shortage in the number of staff is another big problem which makes difficult for the companies to fulfill the orders. For example, BigBasket and Grofers stated that they have the access of only 50% -60% of the staff due to which their frequency of delivery rate has been reduced which ultimately has made a pressure on them for unavailability of the consumer. Likewise, Amazon too permitted for restricted deliveries mainly the essential items and has suspended the deliveries of certain goods due to the shortage of staff and logistical crisis. Kirana shops which previously faced a stiff competition from digital commerce platforms but at this period of time it is considered to be important destination for buying daily and essential items. Thus, Reliance has planned of digitally connecting with the Kirana shops. This will take place soon with the government tapping logistics firms to link these stores with consumers.
Moreover, it has also been witnessed an upsurge in the demand of gaming, new platform and Over the Top (OTT) media. For instance, in the first three month of 2020, Netflix, an online streaming service has added a huge 15.8 million paid subscribers. This was mainly due to the social distancing and lockdown in different parts of the world.
Regulatory insecurity as well as knee jerk reactions in emergency circumstances, cause more harm than good, as obvious from the government’s approach for the supply chain management during pandemic. The government must also provide relief to the small e-commerce players by permitting g them to deliver non-essential goods while practicing social distancing and hygiene. Ensuring regulation, restructuring of foreign investment laws and with better regulatory unity will definitely helps in enhancing the smaller e-commerce players’ growth.
However, the growth of the e-commerce will depend upon only on its service efficiency and adaption level with respect to general consumer psyche in long run. Mostly at this time period, companies which will respond better can able to tap better with the shift towards online purchasing.
电子商务甚至给农民受益by making them to avoid middle men and intermediaries and to sell their produce to the wholesaler buyers including agribusinesses, corporate grocery, restaurants and others directly. This has benefitted the farmers not only with enhanced income but also with wastage reduction and enable financial inclusion.
U.S. government is yet to announce any lockdown but the e-commerce stores are still working on and continuously involved into delivering products to its customers. Ever since the outbreak of Covid in U.S. companies like Amazon, Walmart and Instacart have faced a rise in the online orders. It has been witnessed that in first few weeks of March, grocery orders has jumped to 210% and is also expected to remain the same in this post-pandemic.
In U.K. before the lockdown initiation, people got panic and as a result it has raised the sale of specific items including toilet paper, board games, crafts equipment medicines, groceries, home appliances and yoga mats.
In India, extension of the lockdown period has made the e-commerce executives to go to the government for help. A meeting was held amongst Honorary Piyush Goel, Commerce Minister of India along with leaders from DHL, Amazon, Swiggy, Zomato, Flipkart to grant them the permission of selling at least the essential items.
In Australia, e-commerce players have adopted a defensive mode as they are continuously in contact with local municipalities and the government to deliver the essential items on time.
The coming month is considered to be tough time for the e-commerce industry as increasing number of death rate due to COVID-19 is making the government to release a curfew in many countries. The respective players have to work in close collaboration with the local authorities as well as the governments so as to run their business efficiently by offering in need with helping hand.