E-commerce is taking a bigger slice than it has been during this pandemic and it is not going away
Since the World Health Organization declared Covid-19 as a pandemic, people had an increasing change in their buying behavior.
People have embraced social distancing to slow down the spread of coronavirus, which resulted in a drop in brick-and-mortar shopping and an increase in e-commerce as more people turn to online platforms to purchase necessities and other goods they need.
In Session 3 of the Global Sources Virtual Summit, seasoned online sellers Kevin King, Steve Simonson and Tim Jordan discussed these changes in e-commerce as well as product categories being shopped online in the time of coronavirus.
Groceries or consumables remain a priority among consumers followed by face masks and sanitation products. There has also been a demand for immunity-boosting products such as health supplements, which are deemed to be a good product category in the time of coronavirus.
With most people staying or working from home, people have seen how these restrictions somehow benefitted their environment and so environment-related products may also be a big opportunity in e-commerce.
Sellers should expect more competition because there are people at home looking for means to earn online. Aside from Amazon, there is a boost in social media marketplaces such as Facebook and Google, Tim Jordan observed.
With these rapid changes, a tipping point is likely to happen. Steve Simonson thinks macroeconomics will start affecting consumers whom he projects to become more budget-conscious as the months go by.
“Luxury items will not be where people will be putting their money into. A lot of unattended consequences are coming… There will be changes so products such as travel accessories or those in distressed categories, I suggest that you pivot or figure out a way to survive – whether broaden or diversify your line – do what it takes to fight another day.”
They say it takes 21 days for people to form a habit. It has been more than 21 days since they were put on lockdown and self-isolation, and a lot of these consumers have formed adaptive habits since the World Health Organization declared Covid-19 as a pandemic.
People have come to terms with the realities of the interconnected world.
According to Kevin King, retail will still be a thing as a lot of people will still like to go to stores and touch things. However, e-commerce is taking a bigger slice than it has been during the pandemic and that it will not go away even after the coronavirus situation is over.