Is there reason to believe the novel Coronavirus, Coronavirus will have a beneficial long-term effect on UK e-commerce?
Well, maybe these insights by GlobalData will lend credence to the theory. According to the researcher, e-commerce will benefit from the unprecedented changes in customer norms and habits thanks to the global virus.
Customers worldwide have joined the massive shift to online shopping as stay indoors, and lockdown orders force store closures, and many brands turn to online sales to survive the deadly conditions.
“Coronavirus has led to an upsurge in e-commerce sales, with web-only grocery sellers enjoying most of the revenue. Supermarkets are facing a first-time demand for doorstep grocery delivery. GlobalData estimates United Kingdom’s online food & grocery market will expand almost 20 percent this year (2020) to reach £13.2 billion,” said Luke Gowland, Thematic Analyst at GlobalData.
However, apparel and footwear brands are still facing difficult times. Figures from GlobalData shows a 7.9 percent dip in UK ecommerce sales compared to last year (2019). But customer behavior is to blame, according to the researcher. Though many clothing brands can still make web sales via online platforms, shoppers who spend most of their days indoors feel it less necessary to spend on new clothing.
“Perhaps, handling the most pressure among negatively affected e-commerce markets are online travel agencies. At one time, web-only travel agencies were shaking the market and stealing the show. Now, they are the ones trailing. Group rides have also suffered significantly as people keep distance amid Corona. Bookings have gone down significantly with Uber and Lyft facing an 80% and 75% drop in that order,” said Gowland.
Though some markets are still struggling to survive the effects of Corona, the expert still sees a bright future for e-commerce.
“Businesses will now focus on their supply chains and how tech like the cloud, 5G, blockchain, and Internet of Things (IoT) in the race to boost their competence and robustness.”
“In the end, e-commerce will grow thanks to Covid-19, and even the negatively affected markets will start to recover as soon as lockdown restrictions have been eased,” He concluded.
Author Bio :- Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of ecommerce and assists merchants through services like paypal transparent redirect. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie on his backyard porch, as should all right-thinking people.