Ecommerce Market : Did The Pandemic Get To It?

The year 2020 was a challenge for many. At the same time, ecommerce was growing at an unprecedented rate. What can we expect from 2021?

The COVID-19 epidemic in 2020 has changed the world and made everyone accustomed to the new system. And, despite the problem in various industries, eCommerce is now very much alive. People will never stop buying: food, clothing, entertainment (and what else should you do when you are locked up and can't get out of your house?), Baby clothes and pet supplies, and so on.

After all, fast online marketing ‘has forced marketers to adapt to a new reality and revise their strategies. However, how can you find out which businesses managed not only to survive but also to grow in such a difficult year?

Key Points

The COVID-19 crisis has accelerated the growth of e-commerce in new firms, customers and product types. It has given customers access to a variety of services that are easily accessible and secure in their homes, and has enabled firms to continue operating despite restrictions on communication and other forms of confinement.

In addition to the ongoing international diversity, the COVID-19 crisis has improved global economic commerce and expanded the scope of e-commerce, including new firms, consumer segments (e.g. older) and products (e.g., current, trade-offs). -e-commerce in many countries has varied from goods and services to everyday needs, suitable for a large number of people.

Some of these changes in the e-commerce landscape are likely to be long-term, due to the potential for new waves of the epidemic, the implementation of new procurement practices, the cost of education and the incentive for firms to invest in new trading channels.

Despite the efforts of some governments to promote e-commerce during the COVID-19 crisis, the ongoing digital divide means that not everyone has been able to participate. In addition, unregulated regulations in e-commerce can create obstacles for firms, such as in the omni-channel marketing model or new delivery methods. Although many of these challenges existed before COVID-19, the current difficulties and the new e-commerce role of individuals and firms have increased the need for policy formulation.

For consumers, systemic challenges related to connectivity, financial inclusion, skills and trust (e.g. digital security, privacy and consumer protection) have brought great relief. To address this, governments can increase affordable and quality broadband in rural and poorly managed areas, improve financial inclusion, and promote the trust and acquisition of skills to participate in e-commerce.

olicy makers should reduce regulatory uncertainty to support the development of new business models, e.g. in the context of the growing interdependent relationship between offline and offline marketing strategies

Governments also need to address the specific needs of SMEs, including ensuring a fair playground in the context of intermediate services (e.g. online platforms). Ensuring adequate competition in the retail sector and an efficient environment that allows e-commerce, including communication services, freight forwarding or trade, is also important.

Ecommerce entry
2021:

Global ecommerce sales reached $ 26.7 trillion by 2020, making up 19% of all retail sales

An analysis from UNCTAD found that global ecommerce sales increased to $ 26.7 trillion by 2020, making up 19% of total sales (up from 16% in 2019). This increase in the budget, which the UN has called a ‘drama’, marks a major global shift to online shopping since the introduction of coronavirus.

Going inward, it seems that some markets have seen a more significant deviation in ecommerce sales than others. The data shows that the Republic of Korea has experienced a significant increase in the share, with online sales increasing from one in five (20.8%) to more than one in four years (25.9%). In essence, China has entered a one-percent low penetration of ecommerce by 2020.

UK also saw significant growth compared to its regional counterparts, growing from 15.8% online share share

Sales accounted for 23.3%, which ranks third in growth in seven major economies including the US, Australia, Canada and Singapore.

Singapore's ecommerce growth puts you in a position to watch as its ecommerce infrastructure develops rapidly. Although more than one in ten sales are now made online in the country (11.7%), this figure has increased from a low 5.9% in 2019.

Food
2021:

Online food sales are slowing down as consumers return to stores

Growth in online grocery sales dropped to 25% year-on-year in April 2021, down from 92% in the previous month as raising shop limits encouraged more shoppers. Nielsen data, analyzed by the BBC, shows that the number of visits to brick-and-mortar stores increased by 3%, and until then sales increased by 4.6% during the month as a result.

In the four weeks to April 24, customers spent $ 8 billion on supermarkets compared to £ 1.3 billion at online restaurants.

An article from Internet Retailing provides further insight into Nielsen's findings - the product categories that were hit hard by the epidemic are now seeing some of the best performance, showing a gradual change in consumer lifestyle as it is easier to lock. Purchases of fresh food and deli increased by 28% year-on-year, followed by health and beauty products (27%) and bakery (15%). Interestingly, the re-opening of online tourists did not affect the sale of alcohol as originally expected - the purchase of this category in supermarkets remained 9% until April 2020.

Offline supermarket products, such as Lidl and Aldi, received major rewards in the 12 to 24 weeks of April, seeing sales increase by 18.2% and 10.4%, while those who provided solid online food saw growth in low single numbers.