Based on, unctad.org/press-material/covid-19-has-changed-online-shopping-forever-survey-shows and the survey, entitled “COVID-19 and E-commerce”, the article has been prepared so that readers can get an idea about the impact of COVID19 in E-commerce. The COVID-19 pandemic has enhanced digital transformations. Digital solutions are increasingly needed to continue some of the economic and social activities remotely. The pandemic has scaled up E-commerce; online education etc., and promoted physical distancing so social movement, visiting friends and relatives’ home etc. have come down. In this regard, few findings from the Survey, entitled “COVID-19 and E-commerce”, by the United Nations Conference on Trade and Development (UNCTAD) are highlighted for the benefit of readers. According to UNCTAD Secretary-General Mukhisa Kituyi, “The COVID-19 pandemic has accelerated the shift towards a more digital world. The changes we make now will have lasting effects as the world economy begins to recover”. The Survey “COVID-19 and E-commerce”, was conducted among 3,700 consumers in nine emerging and developed countries.
These are Brazil, China, Germany, Italy, the Republic of Korea, Russian Federation, South Africa, Switzerland and Turkey. The survey conducted by UNCTAD and Netcomm Suisse eCommerce Association, in collaboration with the Brazilian Network Information Centre (NIC.br) and Inveon, shows that online purchases have increased by 6 to 10 percentage points across most product categories.
Few of the findings are:
Ø More than half of the survey’s respondents informed that they would shop online more frequently and rely on the internet more for news, health-related information and digital entertainment.
Ø Consumers in emerging economies have made the greatest shift to online shopping, the survey shows.
Ø Online purchases have increased by 6 to 10 percentage points across most of the product categories.
Ø The biggest gainers are ICT/electronics, gardening/do-it-yourself, pharmaceuticals, education, furniture/household products and cosmetics/personal care categories.
The graphs presented by the Survey are directly posted here so that readers can get an in-depth knowledge.
Figure 1: Percentage of online shoppers making at least one online purchase every two
months
Source: UNCTAD and NetComm Suisse eCommerce Association
Further the Survey reveals the fact that average online monthly spending per shopper has dropped significantly (Figure 2). The consumers in both emerging and developed countries have deferred higher expenditures, with those in emerging countries focusing more on essential items.
Tourism and travel sectors have suffered the strongest decline, with average spending per online shopper dropping by 75 percent.
Figure 2: Fall of average online spending per month since COVID-19, per product category
Source: UNCTAD and NetComm Suisse eCommerce Association
It is evident from the Survey that women and people with tertiary education increased their online purchases more than others. And the people aged 25 to 44 reported a stronger increase compared with younger people. In the case of Brazil, the increase was highest among the most vulnerable population and women.
Further, according to Survey responses, small merchants in China were most equipped to sell their products online and those in South Africa were least prepared.
“Companies that put e-commerce at the heart of their business strategies are prepared for the post-COVID-19 era,” said Yomi Kastro, founder and CEO of Inveon. “There is an enormous opportunity for industries that are still more used to physical shopping, such as fast-moving consumer goods and pharmaceuticals.”
One interesting finding as observed from the Survey is that most used communication tools are WhatsApp, Instagram and Facebook Messenger, (all owned by Facebook). However, Zoom and Microsoft Teams have been profited the most from increases in the use of video calling applications in workplaces. In China, the main communication platforms as observed from the survey are WeChat, DingTalk and Tencent Conference. The survey results suggest that changes in online activities will be more in the COVID-19 pandemic. Majority of the respondents, mainly from China and Turkey informed they would continue shopping online and focusing on essential products in the future.
And it is evident from the Survey that international tourism will awfully suffer.
Dr. Shankar Chatterjee, Hyderabad, 19 May 2021
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