It is expected that COVID-19, social distancing and staying home will boost the e-commerce industry growth. However, it is also projected that the uncertain consumer demand and supply chain issues further impact the e-commerce industry. As per the latest data by the WHO on 25thApril 2020, the Coronavirus cases are accounted for nearly 2.6 million and further increasing rapidly day by day. With the abundance of online shopping and delivery demand comes predictable interruptions. The consumers who are on sick leave, working from home, or seeking to evade contact with others are buying more products online and to be delivered to their house. Amazon in March 2020 starts providing the warning message that increased demand was leading to shorter supply and longer delivery periods. E-commerce supply chains are mainly strained by COVID-19 as well as factory closures in China and other countries. These issues can also impact big merchants such as Target and Walmart, who will almost certainly experience a drop in casual shopping, supply chain disruption, and an increase in purchases of essential toiletries, groceries, and health items. Chinese major e-commerce companies such as Alibaba and JD.com are employing thousands of temporary workers, as the government of China enforced travel constraints that have heightened consumer demand for online grocery delivery services.
Impact on China E-commerce Industry
China’s giant e-commerce company Alibaba has struggled to sustain growth rates during an economic slowdown in its domestic market and grappling with the uncertainty of coronavirus outbreak. While extensive home incarceration is prompting demand for online services from grocery delivery to office apps to streaming entertainment, the disease is grimacing nationwide transport and endangers in the long run to dent the buyer expenditure Alibaba depends on. However, Alibaba is providing a subsidy of $144 million for the encouragement of the people for online shopping. Moreover, on April 2020 Alibaba Group Holding Ltd and JD have each launched booking services for Covid-19 tests.
Alibaba is one of the largest retail commerce businesses across the world in terms of GMV in 2019, according to its financial report. The company operate Taobao Market place, China’s largest mobile commerce destination with a large and growing social community, and Tmall, the world’s largest third-party online and mobile commerce platform for brands and retailers, in each case in terms of GMV in 2019, In 2019, the company generated approximately 66% of its revenue from retail commerce business in China. Therefore, this outbreak in China will likely impact the company’s revenue generation from the e-commerce industry. The other key companies that are significantly contributing to the e-commerce industry including Amazon.com, Inc., Qoo10 Pte. Ltd., JD.com, Walmart Inc., Shopify, Rakuten Group, and eBay Inc.
OMR Global recently published report on https://www.omrglobal.com/industry-reports/e-commerce-market
The Report Covers
- Comprehensive research methodology of the global e-commerce Industry.
- This report also includes a detailed and extensive market overview with key analyst insights.
- An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
- Analysis of regional regulations and other government policies impacting the global e-commerce Industry.
- Insights about market determinants that are stimulating the global e-commerce Industry.
- Detailed and extensive market segments with regional distribution of forecasted revenues.
- Extensive profiles and recent developments of market players.
Global E-commerce Industry – Segmentation
By Product Type
- Electronics
- Healthcare
- Beauty and Personal Care
- Others
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