The COVID-19 (Coronavirus) pandemic has resulted in empty shopping malls all over the world, especially in countries like the USA, Italy and Spain where the spread of the virus has been even more pronounced. Except for the initial weeks where consumers wiped out supermarkets of toilet paper, instant noodles and rice, most are avoiding crowded areas and delaying non-essential purchases and travel.
Needless, to say the economy has been impacted in most sectors especially the tourism Industry. This would adversely affect retail sales, especially for a country that is highly dependent on tourist dollars.
In contrast to the situation, Online Marketplace seems to be benefiting from this episode of the virus outbreak as people are now turning online to purchase their daily necessities.
Let’s look at some of the Facts around the World:
- In China, JD.com saw an increase of 215% in online shopping grocery sales to 15,000 tons in just the first 10 days of February 2020.
- Grocery, pharmaceutical and general retail order values are higher than usual, as people buy the products they need online.
- Good examples of such success stories include Iuiga and Awfully Chocolate who have reported that their online sales have experienced a surge, even though they have been experiencing a drastic drop in sales at their offline stores in shopping malls due to COVID-19.
- Furniture retailer IKEA also saw its online shop sales increase from 10% to 14% as a result of COVID-19.
- As reported by CTV News, The BC Association of Farmers’ Markets (BCAFM) announced that it is helping members move online so they can continue to provide people with locally grown food during the crisis.
- With consumers essentially homebound for an unknown amount of time, home delivery of everything from groceries to pharmacy items, to general household items, is being embraced by many for the first time. Consumers are relying totally on Online Delivery Partners.
Online Marketplaces are turning out to be the true heroes in this pandemic situation. Businesses have begun migrating Online as part of their overall business strategy as a branded online store. Retailers are paying attention to the benefits of the online marketplace model and thinking of how it could be leveraged to improve their agility, scalability, and supply network versatility. The immediate reliance online shopping for vital supplies indicates that customers may form longer-term habits that get more ingrained as the pandemic-related social restrictions remain in place.
