International Journal of Multidisciplinary Research and Development

International Journal of Multidisciplinary Research and Development


International Journal of Multidisciplinary Research and Development
International Journal of Multidisciplinary Research and Development
Vol. 8, Issue 4 (2021)

Covid-19 a boon for e-commerce industry


Shweta Tiwari

E-commerce’ and ‘online shopping’ are often used interchangeably but at its core e-commerce is much broader than this – it embodies a concept for doing business online, incorporating a multitude of different services e.g. making online payments, booking flights etc. E-commerce has experienced rapid growth since its humble beginnings with e-commerce sales projected to grow to 599.2 billion USD by 2024. The COVID-19 outbreak saw e-commerce sales spike 25% in March 2020 alone. The power of e-commerce should not be underestimated as it continues to pervade everyday life and present significant opportunities for small, medium, and large businesses and online investors. You don’t need to look far to see the potential of e-commerce businesses. Amazon, for example, which set the standard for customer-orientated websites as well as a lean supply chain, is selling over 4000 items a minute from SMBs alone. In the short term there will likely be a boost to some sectors of e-commerce as people would continue to be apprehensive of stepping out frequently even after the lockdown ends. But again, in the short term, scaling up of the supply chain in keeping with requisite safety measures will be a challenge. While it is safe to say that the entire e-commerce industry will not be seeing a positive net change, the fact that it shall surely thrive more than brick and mortar stores can be relatively safe assumption. In the long term, however, the growth of e-commerce would depend on how efficiently they provide and adapt their services in accordance with general consumer psyche. Probably, companies which are able to respond better during this period will be able to better tap into the potential shifts in attitudes towards online purchasing. At the same time however, hyper-local shops like kirana stores are not likely to be endangered but rather transform their services with the help of digital logistics platforms. E-commerce has grown rapidly and changed significantly over the years, as such there is plenty for buyers, investors and entrepreneurs to be mindful of. Understanding different fulfilment models, as well as the pros and cons of different platforms, is critical when evaluating potential e-commerce businesses for sale.
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