Even much before 2020 started, people had started flocking online portals and completing their buy wish list online. Thanks to the power of the internet the world of e-commerce has boomed in the last few years. The basic convenience of being able to get multiple options, choices and that too at better prices, without having to bargain or physically going to the market, has only made online shopping more popular.
Turn the clocks to 2020, and the entire world saw the pandemic take complete control over even the most basic behavior of people. With social distancing and basic expectations of staying home, we will only bring to the forefront the popularity of e-commerce and online shopping. While the popularity grows, the panic-stricken buying of consumers for all basic healthcares, beauty, electronics and personal care caused a slight demand and supply chain shortage.
Along with this fact, one other major impact has been caused due to the closure of major factories around China and the US. With a major impact on China which happens to be the largest supplier and manufacturer of electronics which also makes up a large part of online shopping, there is a huge flux and decrease seen in the supply chain of electronic products on the whole.
Even the largest e-commerce players like Amazon had to suffer losses because the net income fell by 26% due to an increase in the shipping costs by almost 46%. On the other hand, there have been certain changes in the e-commerce industry as well. The COVID19 crisis has lead to the expansion of e-commerce by bringing consumers and products online. Despite the fact that this crisis has affected almost all nations, the dynamism of e-commerce order fulfillment services by moving and shifting gears to providing more essential commodities instead of luxury products. The pandemic has brought a shift not only in our meeting and lifestyle patterns but has also inflicted a change in the buying patterns.
With the news of the vaccine finally being approved, there are full chances that the situation will remain the same in the initial months of 2021 as well, which means that the E-commerce sector will have to keep up with supplying not just luxury essentials but even everyday commodities that people resort to buying. Buying through this means more safety because as per the WHO it is very unlikely that the COVID19 virus can sustain itself for the duration when the items are packed to the time it finally reaches your doorstep.
There was a considerable increase seen in the sales of groceries and other essentials within the first week of March itself on various online e-commerce platforms. In the current situation, there is a lot of uncertainty that looms ahead, which means that the same holds true for the e-commerce industry. With fluxes and changes being witnessed, consumers are also focusing more on necessities than needs.