The virus and eCommerce

The coronavirus brings dramatic changes to consumer needs and is influencing retailers in many ways. With stores closed, more consumers shop online for the first time in new categories. After reading a number of sources (see list at end) there’s growing evidence of the impact Coronavirus is having on e-commerce with anticipation for long term increase in online retail, as new people rapidly get used to online shopping realising what others already know about the benefits of eCommerce.

 

Experts argue that as consumers shift more and more purchases online the small and even large brick & mortar retailers have no choice but to promote their online businesses if they want to remain in business. It is therefore thought that the coronavirus will provide a long-term boost for online retailers—if they can overcome the apparent rocky economy in front of us.

 

Early evidence shows the expected significant increase in online sales. Preliminary data shows an average revenue increase of over 50% for e-commerce associated with Brick & Mortar and an 8.8% increase in conversion rates compared to last year.

 

According to U.S. government data, online sales were 11.4% of total retail spending during Q4 2019. This year e-commerce is projected to be over 12%.

 

Established online retailers now have the opportunity to adjust their advertising campaigns and drive these new customers to their websites, while newcomers and companies moving from the pure Brick & Mortar to the digital have the chance now to further solidify their brand position with the so important online presence.

 

Related readings

Google Credits: COVID-19: $800+ million to support small businesses and crisis response
Digitalcommerce360: Coronavirus will boost ecommerce in the long run, but brings new risks
Digitalcommerce360:  Retailers and the coronavirus
Marketingland: Coronavirus creating disruption, uncertainty for digital marketing ecosystem
Marketingland: Coronavirus creating disruption, uncertainty for digital marketing ecosystem

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