Business In A New Way: The Coronavirus Pandemic Is A Boost For Online Commerce

Business In A New Way: The Coronavirus Pandemic Is A Boost For Online Commerce

People all over the world are forced to buy online what they used to go to the store for. Will they be able to get rid of this habit after the quarantine?

According to the forecasts of the German online statistical portal Statista, the global e-Commerce market will reach $4.9 trillion per year by 2021. According to the analysis of Digital Commerce 360, the volume of online sales in the world in 2016-2019 grew by an average of 20% per year. At the same time, retail offline sales increased by 3.5% over the year. If this trend continues, the volume of the global e-Commerce market will exceed the volume of traditional retail by 2036.

At the same time, there is reason to believe that the coronavirus pandemic will serve as an additional impetus to the development of online Commerce. After all, in this situation, more and more people around the world are forced to buy online what they used to go to the store for. And having got used to making purchases in one click they are unlikely to spend more time on it in the future.

Another advantage of online shopping over traditional retail is that many stores are now simply closed. This problem is avoided by an online business — because if there is no physical store it will not be closed.

According to the research, which surveyed almost 30,000 respondents, for 9% of people, sales on an online platform are an opportunity for additional earnings, and for another 3% — the main source of income. This is especially true for the oldest and youngest age categories.

For almost 9% of respondents over the age of 65 and 4% of those aged 18-24, sales through trading platforms are a business and the main source of income. Among the main reasons why they chose to sell online, entrepreneurs named the desire to earn more money and combine permanent work with running an online business.

What motivates people to consider online trading platforms as a type of earnings?

Sales Channel For Every Business

On online platforms, you can sell absolutely everything — from household chemicals to cars, children’s goods, and even intangible services. Therefore, for small and medium-sized businesses of almost any profile, online trading platforms are a powerful sales channel.

Interesting prospects are opening up now, when the demand is adapted to the needs of buyers, especially those who are actively purchasing essential goods, such as food, household chemicals, and hygiene items. According to one of the most popular trading platforms, from the first to the fourth week of March 2020, the demand for beauty and health products increased by 84%, food products-by 110%, and household goods became more popular by 345%.

This is a great opportunity for those who are just planning to start a business online or are ready to change sales directions, to take a profitable position.

A Site With A Lot Of Traffic

Making a choice in favor of online trading platforms, you solve one of the main problems of any business — reach customers. You are not limited to your district, city, or even region. In addition, you have access to a huge audience, so you can save significantly because having such coverage, you do not need to invest in the development and promotion of your own online store.

If you sell products that are less popular at the moment you can still spend money on promotions in order to attract new customers.

Smartphone Users

Online trading platforms usually have their own mobile app. For online businesses, this may mean an even greater expansion of the audience as current trends suggest that a significant influx of traffic comes from smartphone users.

If we talk about platforms, according to data for 2019, only 25% of users visit Amazon via the desktop version every day, 20% use the mobile version, and the main audience is 55% of those who log in via the mobile app.

By choosing an online trading platform, the seller facilitates the task of delivering goods to customers. Large services have their own well-established logistics system, which means that you only need to agree on the shipment and coordinate the process of receiving the parcel.

In summary, we can say that online platforms are actively developing along with e-Commerce. And a business that adapts to the e-Commerce market has every chance to develop more dynamically, which is especially important during a period of turbulence.