COVID has only brought a wave of disappointment for most economic sectors. However, in the pandemic era, eCommerce has a very dual nature. There are two sides to the eCommerce COVID impact:
- Demand for goods through online shopping keeps soaring due to the lack of accessibility with brick-and-mortar stores.
- Due to the unavoidable case of reduced staff, COVID protocols and travel restrictions, Delivery eCommerce has impeded and slowed down. To make matters worse, the shipment rates have increased while providing poorer service.
With such a situation, one can never be sure about where the industry is heading. The big picture of the supply chain and logistics industry is blurry. At this point, the best way for supply chain managers and entrepreneurs to have a clear picture is to assess the eCommerce COVID impact in the last two years.
2020:
During the 2020 COVID crisis, the digital economy flourished. People turned to online shopping in large numbers as brick-and-mortar shopping was not an available option. Meanwhile, supply chain companies magnificently contributed to the distribution of oxygen cylinders, medicines, and ventilators. Groceries, fitness equipment, furniture, household equipment and recreational goods were the trending product categories of the year. At the same time, apparel sales (barring loungewear) dropped significantly.
While 67 per cent of consumers reportedly changed their shopping habits, the purchasing power of most people had diminished. Hence, though 2020 made consumers switch to eCommerce, it did not mark as a profit-making year for the industry.
2021:
With the second wave in 2021, as financial stability and purchasing power started to recover, people increasingly shopped online. What contributed to this factor was the lack of supply at brick-and-mortars and malls (despite reopening) and the convenience of shopping online. Apparel, electronic goods and other non-essential items restored their positions with a 40-90 per cent growth.
The online sales of essential items continued as the previous year. Newly launched grocery-based eCommerce companies like Zepto saw dramatic growth. Similarly, pharmaceutical eCommerce companies like NetMeds and Pharmeasy saw an upward shift in the graph. In addition, sales of hygiene products such as sanitisers and masks saw a surge.
By the latter half of 2021, the state of eCommerce in India had recovered to pre-COVID times, if not improved. Rapid deliveries, free shipment, and plenty of sales (discount offers) became a characteristic feature of eCommerce.
What to expect in 2022:
At a time when Omicron is becoming more prevalent in India, the country’s e-commerce sector is preparing to address the difficulties, particularly those aimed at boosting its supply chain and logistics network. Vaccination of the logistics workforce is crucial and of high priority for eCommerce companies to ensure the continuity of business.
Despite the fact that the effects of Omicron are unpredictable, eCommerce businesses have an advantage over data. While conglomerates like Amazon and Flipkart have taken preventative measures for staff health, as well as expanded their logistics in Tier-II and Tier-III cities, it is pivotal that eCommerce startups catch up.
AAJ Supply Chain Management
