The Affects of COVID-19 on E-Commerce Businesses

LookSmart 2019

I believe we can all agree that the COVID-19 outbreak has shifted business and consumer perceptions in the past year. E-commerce businesses and the use of digital marketing are taking advantage of the pandemic and taking over the shopping industry.

Let's start off by discussing the fundamentals of digital marketing. 

What is the definition of digital marketing? 

Well, digital marketing is the promotion of brands through promotional interactions such as search engine optimisation, social media, and display ads in order to connect with their target and potential customers. Electronic gadgets like televisions, mobile phones, tablets, and desktop computers are used to accomplish this.

E-commerce businesses have benefited immensely from digital marketing in terms of raising brand awareness and encouraging people on a global scale to buy their products or services online. Consumers have gained more convenience as a result of e-commerce businesses providing more product details and reviews, facilitating connection with customers via a live bot, and allowing purchases to be made over the internet without leaving the house.

Yougov 2020

So what are the impacts of COVID-19 on e-commerce businesses?

Since the pandemic began in early 2020, the revenues of e-commerce companies have increased dramatically. The outbreak has resulted in social distancing, lockdowns, and concerns about safety when leaving the house, prompting consumers to make online purchases. In the Australia Post eCommerce Industry report, it shows that online purchases are growing at a rapid rate. The national average from 2019 to 30 April 2020 was 17.2%, with a significant rise to 41% of online purchases by the end of 2020 (Australia Post 2020). It is indefinite to see that online purchases are continuously going to rise with COVID-19 still in play, and even changing the game of e-commerce businesses around the world.

Besides the rise of online purchases made in recent years, e-commerce businesses are able to focus in online expansion, attracting a wide range of consumers, increase in essential product sales and a booming of small online businesses. Although there are positives, there are downsides to affected e-commerce businesses such as the closure of stores, more competitors, loss of consumers, border closures and restrictions preventing shipping.

Cnet 2021

Global giant, Amazon has seen a boom in sales ever since the pandemic started, with net sales rising up to 60% in July 2020 compared to 2019. The lockdown assisted in boosting the company's dominance with having 38% of the e-commerce market (Semuels 2020). This is a prime example of the positive impact COVID-19 has had on an already very successful business. 

TikTok businesses have boomed since the pandemic, with everyone passing time in lockdown scrolling through the app. E-commerce businesses such as She Ate have grown popular over the course of the pandemic with 1.1 million followers and constantly sold out products. This is an example of the positive impact COVID-19 has had on an online business that is at the beginning stages.

Give or take, the pandemic has affected e-commerce businesses in many positive and negative ways. COVID-19 has changed the game for the e-commerce industry, pushing forward the digital world onto consumers worldwide.

References

Australia Post, 2020. Inside Australian Online Shopping 2020 eCommerce Industry Report, pp. 4, viewed 10 August 2021, <https://auspost.com.au/content/dam/auspost_corp/media/documents/2020-ecommerce-industry-report.pdf.> 

Cnet, 2021, Amazon halts sales of books that treat LGBTQ identities as mental illness, report says, viewed 13 August 2021, <https://www.cnet.com/tech/services-and-software/amazon-halts-sales-of-books-that-treat-lgbtq-identities-as-mental-illness-report-says/ > 

LookSmart, 2019, Looksmart Alterations, viewed 12 August 2021, <https://www.looksmartalterations.com.au/10-online-shopping-sites-every-australian-woman-visit/ > 

‌ Semuels, A, 2020, Many Companies Won’t Survive the Pandemic. Amazon Will Emerge Stronger Than Ever, viewed 13 August 2021, <https://time.com/5870826/amazon-coronavirus-jeff-bezos-congress/ > 

 

Yougov, 2020, YouGov’s data on COVID-19. YouGov: What the world thinks, viewed 13 August 2021, <https://au.yougov.com/news/2020/04/02/yougovs-data-covid-19-au/ >