The number of recoveries from Covid-19 infections has been increasing, however, some European countries especially Italy has been greatly affected. Global citizens have butterflies in their stomach about buying goods in stores and try to avoid direct transactions as much as possible, the coronavirus impact on retail started to become a hard reality. In contrast, does this have a positive influence on eCommerce platforms, such as Shopify?
In contrast to the depressing situation which traditional retail is facing, eCommerce platform has benefited from this episode of the virus outbreak as people are now switching to online-grocery platforms to buy their daily life necessities.
In a popular online platform – Shopify sales grew by 47 percent to $505.2 million in the quarter during the peak of the strain of the virus. According to data collected by Bloomberg, analysts predicted $.481.6 million, Shopify said it sees revenue from the number of people buying on Shopify is about $2.13 billion to $2.16 billion for 2020, compared to the forecast by analysts for $2.12 billion.
This behavioral trend is comparable to the effect SARS had on purchasing goods online behavior nearly two decades ago. SARS spurred the growth of eCommerce and likewise, with the outbreak of Covid 19, it is going to improve the rapid movement from traditional store-based selling to digitalization and retail through purchasing online.
Increasing vast majorities of buying online products
E-commerce activity, especially related to health is booming in European nations in general and in the US in particular. Shopify retailers/wholesalers experienced an extremely positive impact as a result of coronavirus by seizing the opportunity to sell health-care products under the situation. Hand sanitizer and antibacterial soap have been keys searched the most recently. Dropshipping manufacturers are also ready to convert products that clients need with shipping longer distances to avoid limiting going to stores for immediacy transactions.
Another case can also be seen in China, The Carrefour vegetable delivery claim that the revenue has increased 600 percent year-over-year during the Lunar New Year period and JD.com saw a 215 percent rise in online grocery sales to 15,000 tons in only the first 10 days of February 2020.
Take advantage of this situation by applying to upsell and cross-sell strategies
Benefits or challenges
Well, I could say that this turns out to be simultaneously a boon and a challenge to digital Shopify merchants. Even the number of sales have been soaring over this period, the click frenzy is also likely to bring the overload and lack of product-supply as supply chain mounts for dropshipping sellers and retailers.
Moreover, retailers are facing a risk of running out of stock as well as product-competing prices with others which sometimes is not affordable enough to convince shoppers to convert.
However, with the complexity of the situation, it is needed that advertisers to push their products on the top of their own supply chains or the lastest news to lure consumers.
All in all, the Covid 19 virus spread is gaining pace around the world with no end in sight. Its sustainable impact will cause a fundamental change in consumer behavior, online businesses are likely to have more advantages than traditional ones, however, they should keep the faith and not feel left behind.
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