As we are halfway through the year, the global COVID pandemic has slowed down in some places and spreading in others. In the midst of all, one thing is becoming increasingly evident that we still have a long way to go until things go back to normal.
For businesses, this presents several challenges and caused massive economic disruptions whose impact will remain for years. An eCommerce retail giant leading them is Amazon, who are facing the impact of the COVID-19 pandemic to the most.
Coronavirus Impact On Amazon Sellers
The impact of the Coronavirus on Amazon was such enormous that the company needed to make plenty of changes, particularly regarding its Fulfillment by Amazon(FBA) service. Especially after, Amazon witnessed a drop of 10% in only one week in February, forcing it to make a surprise announcement that it would only prioritize essential supplies for its Fulfillment by Amazon service.
The COVID-19 pandemic hit hard the Amazon sellers when the company declared its FBA service would no longer be allowed to ship non-essential supplies.
This development left a large amount of third-party Amazon sellers. They had to find a new solution for shipping non-essential products. Almost a month later, Amazon loosened its restrictions,and things started getting better.
But Sales Data Are Telling Something Else. What? Let's Dig Deeper
The invisible virus has ripped through the world and, in the majority, almost entirely shut it down. Everything except for essential stores that includes grocery stores, pharmacies, supermarkets, etc. have given no choice but to close their doors, simultaneously chopping a large percentage of the retail sales that are not done online.
This modification adversely affected the supply chain and consequently boosted online sales.
In fact, Amazon itself has seen a massive jump in sales as the demand for more essential items that primarily consists of food and groceries, medical supplies, health, and personal care products, pet supplies, and more exploded by leaps and bound.
Post COVID-19 Amazon Market Analysis
We have established the fact that Covid-19 has propelled the demand for essential supplies such as food, medicine, hand sanitizers, tissue, disinfectants, and other health-related products. While the imposed lockdown around the world has reduced to a great extent, people still avoid visiting market places and prefer to stay indoors, which in turn helps the online or e-commerce market grow further.
Amazon reported a significant growth in worldwide sales. What is even more surprising is that grocery sales have increased by the right margin compared to the slower growth during previous years. An interesting observation also comes into light during this whole pandemic period that not even the younger generation but people aging above 65 are also actively using online shopping platform.
Currently,we can expect that the trends we have observed so far will stay if not escalate further and it is more likely as we see the 2nd wave of Covid19 heating some countries and the winter is only 3 months away. We look forward to shoppers to continue to:
- Use Amazon instead of visiting local stores for essentials
- Stock-up on items that help prevent the spread of COVID-19
- Invest in their home space with household improvements and entertainment
Needless to say, as the situation progresses for countries around the world, shopping trends are set to evolve, and we expect more extreme changes in buyers' demands based on the evolution of the Coronavirus crisis. Hence, it is essential to keep a keen eye for insights that can be learned and shared.
Conclusion: COVID-19 Economic Predictions
It seems that the demand for eCommerce in the thick of Coronavirus pandemic will increase especially essential goods and house used goods (gym equipment, toys,household and more). What we can't predict is how the changes to the global economy will affect the market.
Although we don't know how the eCommerce market will shape, one thing is clear: being the largest online retailer in the western world, Amazon will be quick to respond to the crisis.
Yes,the pandemic had brought drastic changes in almost every sphere of life that provided a short term hit for most sellers and vendors but most likely to support the best interest of health and economic growth in the long term.Hopefully, it will help encourage faster national socio-economic recoveries from the devastation of COVID-19.
All in all, this is a clear indicator that e-commerce is growing in importance in the world today. It is also becoming prominent when it comes to purchasing health or other essential products in categories such as tech, apparel, or entertainment.
For business owners, this changing dynamics of online shopping sends a clear message that now is the right time to make e-commerce an integral part of their business operations.
The Takeaway
Based on our analysis of the eCommerce market's financial health, we can infer that—no matter the market's condition and the product's situational priority,market share tends to continue to exist. It is only ideal that you should develop and execute the right strategy to capture some success.
Using a reliable Amazon advertising tool will yield results that you may not have expected to make things easier.
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