Impact of Pandemic on eCommerce (Research Paper Sample)

IMPACT OF THE PANDEMIC ON E-COMMERCE By (Name) Course: Professor’s name: Institution: Location: Date: Impact of Pandemic on eCommerce Introduction The global spread of COVID-19 has affected virtually every facet of daily life, and online shopping is no exception. Because of government-imposed lockdowns and social distancing measures, consumers have suddenly shifted to online buying, which has sped up the development of eCommerce for some years. Shopify found that in 2020, e-commerce experienced a 44% growth in sales, with a corresponding rise in both new consumers and transactions (Shopify, 2020). Consumers' buying habits have shifted in response to the recent explosion in online commerce. Supply chains and logistics have also been severely impacted by the outbreak. Since many malls and shopping centres are closing, online shopping has emerged as the default option for consumers. Nonetheless, this has put stress on the logistics sector, with many businesses finding it difficult to meet the unexpectedly high demand. McKinsey & Company found that logistics providers were put under extra strain as e-commerce order volumes soared by more than 50 percent in several areas during the epidemic (McKinsey & Company, 2020). The pandemic affects all aspects of eCommerce, not just the bottom line. As a result, it has had a major effect on consumer behavior, with more people opting to shop online as a way to avoid interacting with other people. Accenture found that 69 percent of respondents said they were more likely to shop online because of the epidemic (Accenture, 2020). This article will investigate how the epidemic has affected online shopping. The effects of these shifts in customer behavior on the eCommerce sector, including logistics and the supply chain, will be analyzed. We will also investigate the responses of eCommerce businesses to the new reality brought on by the pandemic, as well as the potential lasting impacts of the pandemic on eCommerce. Methods The study reviewed previous studies and papers from the eCommerce business and academia to learn about how the pandemic affected the e-commerce sector. The study considered research papers and other media produced between the years 2019 and 2021. The sources considered were scholarly journals like Harvard Business Review and Journal of Retailing and Consumer Services as well as popular business publications like McKinsey & Company and Accenture's publications, and Shopify. The terms "eCommerce," "pandemic," and "consumer behavior," were used as the search terms. 5 articles were selected for the review. The articles helped in learning the effects of shifting customer habits on eCommerce logistics and supply chains during the pandemic. Also, e-commerce businesses' adjustment to the new reality brought on by the pandemic, as well as the potential lasting impacts of the epidemic on the industry was analyzed. Results According to the reviewed literature, the expansion of the eCommerce sector predated the pandemic but has been hastened by the epidemic. US Census Bureau estimates show that internet retail sales in the US grew by 32.4% in 2020 compared to the previous year. In addition, 76% of online store owners said they saw a boost in sales during the pandemic, according to a survey. But the pandemic hasn't hit every eCommerce company hard. Some industries, like those involved in travel and events, have been struck particularly hard, while others, like those involved in the provision of food and household items, have witnessed an increase in demand. The epidemic has also had varying impacts on the general public's ability to go about their daily lives. Survey results show that 67% of customers have shopped online more often since the pandemic began. Safety concerns and the convenience of online shopping were identified most frequently as the causes of this growth. Many people are now in a precarious financial position or have lost their jobs as a direct result of the epidemic, which has contributed to a general decrease in consumer expenditure. Discussion The pandemic caused by COVID-19 has had a considerable impact on eCommerce, both in terms of sales and the behavior of customers. As a consequence of lockdowns and other forms of social alienation, there has been an increase in demand for online retail sales. The online retailing behemoth Amazon reported a 26% increase in sales during the first quarter of the year 2020 (Smith, 2020). This has resulted in a change in consumer behavior, with more consumers turning to online buying as a strategy to avoid shopping in physical stores and keep themselves safe during the pandemic. The epidemic has had some beneficial effects on eCommerce, but it has also had some negative effects. Lockdowns and other forms of social distance have caused a significant number of small companies to be compelled to close their doors. Brick-and-mortar merchants have been disproportionately impacted as a result of these closures (Chen, 2020). As a consequence of this, there has been a shift in market share, with larger eCommerce companies such as Amazon and Walmart witnessing huge growth in sales while smaller retailers struggle to survive. In addition to affecting small businesses, the pandemic has also caused interruptions in supply chains and has lengthened the amount of time it takes for online orders to be delivered (W...