Impact of COVID Pandemic on eCommerce

Impact of COVID Pandemic on eCommerce

The COVID pandemic crisis has forced many small businesses to reassess the decades-old traditional business models or face closing permanently. New and existing technologies are thrust to the forefront of every business toolkit, and forward-looking businesses are addressing talent questions that arise from these new digital business skillsets.

A Global Post-Crisis Bounce in eCommerce Sales?

Risk of further business closures from COVID-related disruptions, in addition to the inherent financial fragility of business, paints a grim forecast for many businesses still open. Or is this just an opinion based on a lack of data?

In the chart below we see a distinct upward jog in total global retail sales from 2019-2020, giving a strong boost to a steady 8% growth in retail ecommerce sales worldwide forecast through 2024.This shows us an increase in online retail sales as a result of the paradigm shift that COVID disruptions have brought to business.

Pandemic Impact to Worldwide Consumer Behavior

As various pandemic-related business restrictions that prevented in-person activities crept across the world’s regions, business turned to the pandemic-proof ecommerce sales channels for basic survival. Online, global consumers could not stop purchasing through their favorite websites (44% of global digital purchases) and online marketplaces (47% of global digital purchases). In response to this consumer migration to digital, Brazil, Spain, Japan saw the largest increase in number of businesses selling online as a reaction to the pandemic.

 
In the chart below we see a forecast increase of 19% n worldwide ecommerce revenue between pre-and-post COVID-19 timeframes in 2020. Food & Personal Care products show the most growth with a forecast increase of 26% of revenue as a result of consumer transition to online sales channels.

Pandemic Impact to Global Small B2B

The COVID pandemic has impacted business countries around the globe differently, creating opportunities for some where business was once lost. Small B2B companies in the United Kingdom and Brazil for example had significant increases in online revenue from their pre-COVID online sales figures.

Boosted by Pandemic, Cross-Border eCommerce Continues to Grow

The data tells us that COVID pandemic-related business restrictions have forced a global business paradigm shift towards the digital economy, which has negatively impacted traditional business models while also creating opportunity through sales diversification online.

This chart shows us clearly the impact to global ecommerce revenues the pandemic has had, adding an additional 19% sales growth for 2020, and additional 22% sales growth to the existing 9% and 12% regular forecast sales growth rates, respectively.