COVID-19 pandemic has impacted our lives in almost all aspects. It has also affected the ecommerce as it is undergoing a change because of how people are spending online.
During the pandemic, Ecommerce Europe interviewed various ecommerce associations, business partners, and company members. It revealed that 65% of respondents expect that due to the pandemic, there will be a reduction in sales, a limited or full closure of businesses, and many companies will be laying off employees. Contrary to that, 66% of the UK population will be resorting to online shopping in the upcoming months.
- Users are more confident about online shopping, and store confidence is low.
- Though online stores are experiencing lesser traffic, at the same time, users are moving from browsing to buying mentality, which has decreased the drop rates.
- Contactless delivery and the speed of delivery are two major factors for customers during the pandemic.
- The surge in online shopping has been observed the most in the age group of 35-44.
According to analysts at Edge Retail Insight, the global trend forecasting arm of retail insights firm Edge by Ascential, the UK’s ecommerce sales will see an expected rise of £5.3bn due to the increase in online shopping caused by the COVID-19 pandemic. They have revised all their previous forecasts on consumer shopping behaviour and preferences after analysing the long-term impact of COVID-19.
Impact on Sales
- Amazon is expected to add an additional £2bn in UK sales, and by the end of 2020, the total will stand at £31.1bn. Before the pandemic, it was predicted at £29.1bn.
- Tesco’s revenue in 2020 is expected to rise by an additional £1.7bn, and it would reach a total of £61.1bn. It was expected to be £59.4bn prior to the pandemic.
- Sainsbury’s sales are expected to add an extra £0.6bn to reach £31bn by the end of 2020. Before the pandemic, the estimated figure was £30bn.
The Future of Ecommerce
Online sales are expected to grow, and there will be more research and surveys to support this. These are the times when businesses have the chance to challenge and revamp their proposition. If they take the right steps, they can capitalise on the online shopping behavioural changes as users get more dependent on ecommerce, even after the pandemic ends.