Coronavirus and its impact on the economy is a topic the whole world is discussing. A sudden shift to online business has increased the demand and supply of the goods through eCommerce services, quarantine all around the globe being one primary reason for the same. According to a research firm, 52% of the consumers are avoiding public areas and the rest are opting to stay inside their homes.
COVID-19 brought a significant impact not only on the businesses but also on every aspect of life, which includes online shopping for necessities and not so essential items. Sales of goods like food, grocery, baby products, bath essentials, and sanitizers have grown whereas, a deep plunge is seen in the online shopping for women & men category. A change in the customer’s preferences have made a significant impact on the sales graph of the essential items. Online retail sale has increased over the eCommerce platforms, and it is estimated to reach to a level of around $6.5 trillion by 2023.
Amazon Coping up with the pandemic?
During the lockdown situation it is highly essential for the retail businesses to function more than ever, taking the responsibility at hand eCommerce giants like Amazon, eBay, Alibaba, and Walmart have strengthened their code of conduct. To help the nation around, Amazon has widened its warehousing and shipment services for third-party sellers. It has prioritized its products and deliveries for the essential items. All the backend operations are still the same for all the sellers. They can continue to sell their products and services and fulfill the shipments.
The Growers & Decliners of the pandemic
During the pandemic, every business is facing an impact on its integrity and profitability. But in the run, some are ranking up high whereas some have just declined ultimately. The changing behavior of consumers has resulted in the following way:
The Growing Category
- Disposable Gloves – 670%
- Bread Machines – 652%
- Cough & Cold – 535%
- Soups – 397%
- Dried Grains & Rice – 386%
- Packaged Foods – 377%
- Fruit Cups – 326%
- Weight Training – 307%
- Milk & Cream – 279%
- Dishwashing Supplies – 275%
The Declining Category
1 Luggage & Suitcases -77%
2 Briefcases -77%
3 Cameras -64%
4 Men’s Swimwear -64%
5 Bridal Clothing -63%
6 Men’s Formal Wear -62%
7 Women’s Swimwear -59%
8 Rash Guards -59%
9 Boy’s Athletic Shoes -59%
10 Gym Bags -57%
Let’s Talk Facts!
As per Forbes, the digital purchasing power of consumers is up 3% year-over-year and has increased by 20% since 2014, with $1.00 buying today what it would have taken $1.20 to buy in 2014. Brands that invested in digital transformation in the past few years are the ones availing the positive impact of the pandemic. These companies played safe and smart and are getting to see the fruits of their efforts.
On the other hand, online retailers that went digitalized are also seeing their investment pay off their efforts now.
Facts Proving the Rise in E-commerce
The following are the points that show how eCommerce has jumped on the sales graph and leading the industry.
- Fitness product sales are up 55%. Toilet paper sales are up 231%. Laptops and other computer sales are up 40%. BOPIS (buy online and pick up in-store) orders are up 62%.
- Hand sanitizer sales, along with gloves, masks, and anti-bacterial sprays, are up 807% from January 1 to March 11.
- Over-the-counter drug purchases are up 217%. Canned goods are up 87%, and home fitness products are up 55%, thanks to gyms closing down.
- Over that same time, a dollar spent buying a similar set of goods offline lost value, with $1.00 in 2020 buying what would have only cost 88 cents in 2014.”
Inspirational Brands Helping While Promoting
The outbreak has made a sudden surge that has bought inspirational brands and businesses to contribute to aid. Check out the leading brands helping the nation fight COVID-19.
- Crocs are donating 10,000 free pairs of shoes a dayto healthcare workers. While any shoes would help healthcare workers, crocs are especially helpful because of their easily cleanable rubber material. JanSport; a heritage backpack brand is also giving away their specialized products. Their initiative plans to donate 10,000 packs of food to the World Central Kitchen to compensate for students who lost their free meals with school closures.
- By founding theToilet Paper Exchange, this one marketing firm in Atlanta has found a way to donate their stock of toilet paper to those in need and has offered to help other organizations with the distribution of their excess.
Mega sports and fashion events, conferences, business events, have been canceled due to the outbreak caused by the virus. But the leading eCommerce industry is making beneficial use of the situation around.
As the coronavirus pandemic situation continues, these strategies will help you brand to keep stay updated with the businesses dealing with COVID-19.