How the Pandemic Boosted the E-commerce Industry

The Effect of the Pandemic on the Ecommerce Industry

E-commerce, or electronic commerce, covers all businesses that buy and sell products and services on an online platform. It may be business to business (B2B), business to consumer (B2C), consumer to business (C2B), or consumer to consumer (C2C).

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Future Market Trends of Ecommerce

To start, let me put out a disclaimer first.

Artificial intelligence will bring more profit to the ecommerce industry.

“2021 will give rise to hyper-personalization within the e-commerce sector in regard to the customer experience. We’ll start to see AI technology coupled with NLG create a type of ‘algorithmic e-commerce’ experience, where customers gain bespoke shopping experiences through customized product and category descriptions.” — Robert Weissgraeber, CTO of AX Semantics

Online grocery shopping will reach mass adoption.

“The pandemic has already had a monumental impact on how we grocery shop — in the US alone, online grocery sales increased from $1.2 billion in August 2019 to $7.2 billion in June 2020. In 2021, to compete, we’ll see grocery retailers capitalizing on this trend in myriad ways — it will be smart for grocers to bolster their online services, offer membership programs and look for new ways to better align their online shopping strategy with their in-store shopping and curbside experience.” — Faisal Masud, CEO of Fabric

Livestream shopping apps will bring in-store experience online.

“The world of social commerce is booming, and we can only expect to continue to see further investment, particularly in social and livestream shopping apps, such as Pinduoduo, who laid the groundwork for the surge in social commerce in the Western world.” — Lucas Tieleman, EVP of Product at Bazaarvoice

You must have seen those memes like what I ordered vs. what I got, right? If not, here’s one from MemeZilla.com.

Digital payings app

“Consumers are looking for easier and faster ways to pay. Credit and debit cards have huge wallet share, but buyers are looking for more flexible payment options, better identity solutions, more robust reporting on their purchases, and ease of use.”

The COVID-19 Pandemic could last until 2022, with a reappearing surge in 2024.

No one really knows for sure how long the pandemic will last. Since COVID-19 is a new strain of disease affecting the whole world, new data comes up every now and then. Findings are always dynamic. — data is still continuously gather

Top E-commerce Players of USA in 2020

According to Digital Commerce 360, these are the top e-commerce companies in the U.S. stock market in 2020.

Bottomline: Is Ecommerce a Good Investment for the Next 2 Years?

Here are the reasons why you should invest in the e-commerce industry in the next 2 years:

  1. The younger generation right now — Millennials, Gen Z, and Gen Alpha — are mostly obsessed with online shopping.
  2. Both the advancement of this generation’s technology and the social distancing due to COVID-19 complements the business model of e-commerce businesses.
  3. E-commerce companies are still constantly getting upgraded as customers continuously look for better alternatives. It’s best to jump on this investment a bit early on before e-commerce gets more mainstream.
  4. Even if COVID-19 goes away, some habits will stay. As they say, necessity is the mother of invention. Once everything goes back to normal, people will still be used to the convenience of digital payments and e-commerce.
Originally written by me on Medium. Main photo by  rupixen.com on Unsplash

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