The Impact of Covid-19 on the Market of E-Commerce

The COVID-19 pandemic affected E-Commerce and Walmart. It disrupted their supply chain, lessened shoppers, and increased people buying essential goods.

In the E-Commerce Market, it involves the buy and trade of any service or good. This includes products, raw materials, and services. People buy this through the business, consumer, and retailer’s use of an online medium. E-Commerce retail involves the exchange of services and goods. This occurs among online retail companies and the end-users which are the consumers. Transactions in E-Commerce may be different. That is because these can be through B2B or Business to Business like Alibaba and Cisco. It's also possible for these to become C2C or Consumer to Consumer like eBay. Some of them involve B2C or Business to Consumer like Walmart and Amazon.

E-Commerce Market

Before the occurrence of the COVID-19 pandemic, factors that drove the market of E-Commerce’s growth include the people’s increased awareness in shopping online, the continuous addition of products launched online, low price because of bulk purchases, the steady rise of internet users, among others. Aside from that, there is also a significant increase in the number of products sold exclusively in the market. Products sold online often have a lower price because of the economies of scale and direct channel in distribution that further contribute to the continuous growth of the market of E-Commerce all over the world.

Since the COVID-19 pandemic occurred, it pushed consumers to shop online so they can distance themselves from other people and stay at home. Yet, because of the uncertainties in issues with the supply chain and uncertain demand from the consumers, the industry of E-Commerce may still get affected. Aside from that, the issue that the COVID-19 pandemic brought has also affected big merchants like Walmart that experienced a disruption in their supply chain, a significant drop in people who are shopping casually, and a remarkable increase in people buying essential groceries and toiletries.

The global industry of E-Commerce got segmented based on products such as personal care, beauty, healthcare, electronics, among others. Because of the COVID-19 outbreak, these different segments got affected because of the demand of consumers and uncertainties in the supply chain all over the world. It even led to the closure of factories in the US, China, and other countries. The electronics products industry is the segment that is most affected by the COVID-19 outbreak as that country is the biggest producer of electronics and its parts all over the world. Most of China's imports are electronic parts that got eventually got assembled into computers and electronic products and exported. However, because of the shutdown of factories in the supply chain of electronics products, it ended up creating an impact on the industry of electronic e-commerce.

Lots of regions all over the world got affected by the novel Coronavirus pandemic. This includes the Americas, Europe, and Asia-Pacific. Alibaba, Asia’s biggest service provider in E-Commerce, ended up struggling to sustain their growth rates due to the domestic market’s economic slowdown, and the uncertainties brought by the outbreak. The major companies that got affected in this market include eBay Inc., Alibaba Group Holding Ltd.,, Inc., Qoo10 Pte. Ltd., Walmart Inc., Jingdong, Rakuten Group, and Shopify. One example of this is the heavy investment of Amazon in one-day shipping that wasn’t able to compensate itself. This made the company’s net income fall by 26% in 2019 as the costs of for shipping increased by 46%. The profits of Amazon got affected by the Coronavirus pandemic all throughout the first six months of the year 2020.

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