Before the Covid-19 pandemic, the factors driving the eCommerce market include steady and robust growth of internet users, as well as the growing awareness related to an increase in online products launching, online shopping, less price due to bulk purchases, and so on. Additionally, a growing number of exclusive products available in the market place, and the lesser prices of commodities because of the economies of scale and the direct distribution channel contribute to further growth of the industry.
With the Covid-19 pandemic upon us, staying home and social distancing is further anticipated to drive consumers towards online shopping. Nevertheless, the uncertain supply chain and consumer demand concerns impact the eCommerce space. Furthermore, the pandemic concern could also impact large businesses that are experiencing fluctuation in causal shopping, disruption in the supply chain, and rise in the purchases of groceries, essential toiletries, and others.
Rapidly Changing Scenario
The scenario is changing at lightning speed. The number of people gauged safe to gather in one location has plummeted from thousands to hundreds and ten. In most major cities in the world, movie theaters, gyms, bars, and restaurants are shutting down.
The majority of office workers now face the challenges of working in a remote setting full time. People are essentially coming to terms with the interconnected world reality and how hard it is to separate the connections to others, even temporarily. Saying that are now living in uncertainty is an understatement.
As more cities are on lockdowns, and businesses that are non-essential are ordered close, and customers avoiding public place in general, it seems like we’re facing a new world. Shopping limitations for all expect the essentials is now the new normal. Brands would have to adapt and strive to be flexible to meet all the changing needs.
Covid-19, Changing the eCommerce Space
All over the globe, retailers are affected by the virus through everything, from supply issues and changes in customer behavior. Coronavirus has changed the world of eCommerce, and businesses are struggling to adapt to the changes.
Is Ordering Online Safe?
How infectious the virus is becoming more obvious, thus shoppers are asking questions on the safety when receiving their purchases done online. Experts state that the virus could live on surfaces from three hours up to three days. That being said, it’s not likely for the virus to survive on purchased items from the time they’re packed to the time you get your package.
Moreover, shipping conditions make a tough environment for the virus, thus being exposed to it via the package is unlikely. There’s a very low risk of spread from packaging or products shipped within days or weeks. The World Health Organization also addresses the issue, by stating that it’s safe to receive packages from locations with reported Covid-19 cases.
Purchasing Responses
Across generations, the Covid-19 response has not been felt universally, with consumers of various age groups responding in a different way to the crisis. Keep in mind that this situation is rapidly evolving, thus surveys could get outdated fast as behaviors change with situations. Consider the following data.
- Gen Z and the Millennials. People as a whole are worried about the alarming growth of the pandemic, but the youngest generations are particularly altering their purchasing behaviors. The young set of generations are concerned about the virus and its impact on the economy. The concern leads them to dramatically alter their behavior than the other generations. The behavior changes include stocking up items, cutting down on spending, and spend less on experiences.
- Boomers and Gen X. Although still worried about Covid-19 and its economic impact, the older generations are less worried and allowing I to impact the way they shop less. Baby boomers and Gen X for instance said that they’re letting current occurrences impact the items they buy, compared to almost half of millennials.
Men and Women Shopping Behaviors
Even though surveys reveal that when it comes to the effects of the pandemic, women are more concerned, it also shows that men are likely to allow it to affect their buying behaviors. Compared to 25 percent of women, one-third of men claimed that the pandemic impacts how much they spend. Furthermore, 36 percent of men, compared to 28 percent of women reported that it affects how much they spend on experiences, such as entertainment, travel, restaurants, and so on.
Also, men were found to shop online and avoid in-store experiences more than women. This includes benefiting from options limiting in-store or face-to-face interactions, subscription services, and curbside pickup.
Changes in Revenue across
As people have accepted social distancing as a way of slowing down the spread, naturally there has been a drop in brick-and-mortar shopping.
As people have come to accept and embrace social distancing as a means of slowing the virus spread, expectedly there has been a plunge in brick-and-mortar shopping. This likely means that there would be an increase in online shopping, as more and more people turn to eCommerce to make purchases.
Despite the growth in online shopping indeed, the truth is that sales in eCommerce are not higher across the board. However, some industries are seeing considerable growth in revenue. This is particularly true for online grocery and household goods sellers.
As the world progresses through these stages, the products that people choose to purchase, as well as the product categories that thrive continue changing. Some of the products that are most affected are the following.
- Shelf-stable products. The sales of shelf-stable items are booming. These fit into the long-term quarantine planes of people category. Products such as milk substitutes; shelf-stable milk grew to over 300 percent. Other items that see increase include fruit snacks and dried beans and all others with long shelf life.
Safety and health products. Anyone faced with empty shelves or seen price cut online is aware that safety and health products are bought much faster than being produced and restocked. Go
- Safety and health goods. Anybody who has seen price cut online and facing empty shelves is aware that health and safety items are purchased considerably faster than they’re produced and restocked, thus shortages of these items are felt more and more. Goods such as medical and hygienic masks sales are escalating to more than 300 percent.
- Food and beverage. In general, grocery sales are up. There are however some behavioral changes on how people are purchasing groceries. Most people opt to buy online or pick-up goods in-store, or have products delivered in an effort to steer clear of crowded supermarkets. Apps that enable people to hire personal shoppers to do purchases for them and deliver have increased downloads.
- Luxury products. The luxury goods industry is taking a beating because of the pandemic. Brands selling luxury items project billions of losses this year due to Covid-19. This is partly due to the fact that luxury goods heavily rely on the purchasing power of the Asian market, where the pandemic has been impacting people since January.
- Fashion. Today, Omnichannel sellers are facing huge losses, partly due to the fact that they’re closing their brick-and-mortar locations. Understandably, people are not interested in buying clothes in person. Even online fashion sales are down as people are putting more budget on daily essentials, as well as health and medical supplies.
Conclusion
All of us are at present living in uncertain times. eCommerce customers are trying their best to adapt to the changes and strange times. Business owners are facing a lot of uncertainty while trying to support the needs of the customers, as well as their own.
Depending on the target market and the industry, the response to the ever-changing situation would alter. To stay afloat amidst the uncertainty in the whole world, the eCommerce industry should strive to adapt to the changing consumer behavior, the priorities, and most of all adapt the processes to the new normal.
More About the Author
Henrik is an eCommerce Industry Analyst, who worked with one of the leading Magento Development Company in India — Sparsh Technologies. He likes to write about eCommerce development, web development, marketing, sales, and more about current trends.
