E-commerce and the Coronavirus Outbreak
2020 was a challenging year for many companies. At the same time, most of the e-commerce companies saw an increase in their online revenue during the global lockdown in 2020. According to the survey, 90 percent of companies saw an increase in their online sales at least a bit, with 50% of respondents claiming that it grew by over 100 percent. Meanwhile, some of the companies saw decreases in their revenue during the lockdown.
Online profit margin
Apart from generating sales, the COVID-19 has also led to disruption of the supply chain, poorly staffed customer service, and more. This affects the online profit margin. The study shows that 38% of e-commerce decision-makers said that their online profit margin has increased while only 15 percent said that it decreased.
The coronavirus outbreak has also caused some changes in companies’ workforce. ¾ companies hired more people, while about 44% relocated their staff. On the other side, 26% of companies fired some of their staff and 15 percent reduced their employees’ salaries. More surprisingly 21% of companies didn’t adjust their workforce. 5% of companies managed to increase their employees’ salaries.
Many physical retailers adopted changes in order to survive amid the Covid-19 pandemic. 31% of retailers introduced in-store pickup, 26% introduced home delivery, while unfortunately about ⅕ of the companies had to shut down their physical stores.
According to the study, for retailers that have online as well as offline stores, 23% experienced an increase in their offline sales, while 16% managed to keep it similar. Unfortunately, 43% say their offline sales took a hit.
Despite all the bad things that happened due to the coronavirus outbreak, e-commerce was the industry for which 2020 was not so bad financially. 63% say that the year (up to October) was successful, while 28% claim their e-commerce business was doing well apart from their physical stores. Only 2% said the opposite.
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