The Massive Effect of COVID-19 on Ecommerce

Just four months were enough for the coronavirus to make the biggest impact on the world in the last 100 years. The global society went through wars, economic crises, natural disasters, but nothing was quite like this.

COVID-19 managed to unite people from all around the world to reach one goal—beat the virus. Billions of people stayed at home in quarantine so that officials and healthcare workers could manage the crisis better.

The quarantine did something else, though. It affected the business world like nothing else before. Business owners had to shut down their stores or halt production, and the economy experienced a turmoil that is still raging. No one can predict how things are going to be like, but it’s pretty sure that recession is just behind the corner.

Ecommerce has become a massive industry. According to these ecommerce statistics, there are around 2 billion online shoppers at the moment. It’s expected that this number will rise to 2.14 billion by 2021. However, considering the fact that most of the world population stayed at home in the first quarter of 2020 and was on the internet, this number is most probably much bigger at the moment.

The only thing that might slow down the growth of ecommerce at the moment is the fact that many industries are struggling to provide manufacturing services, raw materials, and keep the wheels turning like before.

Apple was supposed to start selling the new iPhone in September. However, the factory in China was closed during the most critical period of the Chinese epidemic, which later turned into a pandemic. Then, it continued working at a slower production rate. When the supply chain experiences a problem in one area, everything else suffers the consequences. Now, the iPhone lovers around the world have to cope with the situation and wait for a specific date.

The good thing about the ecommerce business is that the warehouses were fully stacked before the pandemic. Lots of companies have kept on selling their products. The demand is high, but the expectations can be met. When products go out of stock, the real problem will start to surface.

Nick Loggie:
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