COVID-19 AND E-COMMERCE- Impact on Digital Marketing

1. COVID-19 AND
E-COMMERCE
About $105 billion dollars was added to US
e-commerce due to Covid-19 in 2020
Nazleen
137607214
Digital Marketing
Professor Christopher Briggs

2. Affect of Pandemic on the E-commerce Sector
The Covid-19 pandemic had an enormous impact on
the ecommerce domain pushing ecommerce by two
years.
Two major factors that contributed to this upward
trend were: Lockdowns forcing closures of stores and
change in consumer behavior as many consumers
wanted to avoid catching the disease.
Online sales showed a whooping increase of 32.4% in
2020 when compared to last year. Also, online retail
sales grew to 39% in Q1 of 2021 which is the fastest
growth seen ever.

3. COVID-19 Marketing Data and Trends
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From buying groceries online to pickup
and delivery by millions of consumers,
retailers had to adapt to changing
needs.
Adaption of retailers due to 2020
pandemic
It was estimated that online orders had
a share of at least $1 in every $5 spent
by consumers.
32% rise in US ecommerce due to
pandemic
Delayed shipments contributed to
triple-fold inquires in the holiday
season due to the pandemic.
Rise in holiday shopping inquiries
Essential supplies like toilet paper, food
items, and face masks gave retailers
sales in the early 2020 i.e., beginning of
the pandemic.
Retail sales in early 2020
Retailers saw a surge in online wine
orders during the COVID-19 crisis
which they believe will carry forward
in years to come.
Increase in online wine sales during
pandemic in 2020
At the peak of the pandemic,
about 20%- 30% of the retailers
moved online.
Adjustment of Retailers due to the
pandemic

4. Impact of E-commerce surge on Consumer Behaviour
Lower Loyalty
Pandemic resulted in a shift in
consumer loyalty towards their
favorite brands. About 80% of buyers
resorted to purchasing a different
brand than regular, according to
eMarketer reports.
Rise in Online Sales
Between March 2020 and
December 2020, about
87% of consumers
shopped online and opted
for deliveries.
Contactless Payments
Contactless payments exploded
globally in 2020 by over 22%,
according to reports by eMarketer
reports.
Covid Friendly Fulfilment
Options
Covid friendly options gave many first-
time shoppers a chance to experience
different brands. About 51% of the
shoppers placed online orders for in-
store or curbside pickup.
Surge in shopping at Social
Media platforms
Pandemic encouraged addition of many
social media shopping channels. It is
estimated that about 3.4% of total
ecommerce sales were of retail commerce.

5. Impact of E-commerce on Market Trends during covid-19
Prioritize customer
relationship
47% of the
Marketers
prioritized on
building
relationships
with their
customers.
Rise in Online
sales
Companies of all
sizes: small,
medium and
large started
taking advantage
of online sales to
boost their
business during
pandemic.
Social Media
Marketing
Usage of social
media for raising
brand awareness,
building brand
image and utilizing
it for customer
retention strategies
was done by about
84% of marketers
Usage of Digital
tools
Marketers utilized
their budgets by
investing in digital
tools that would
help them form
healthy
relationships with
customers, help
them in increasing
sales and revenue.

6. Amazon’s Success during the Pandemic
● Amazon’s sales rose to 44% higher than the previous year in the first few months of the
pandemic accounting for $108.5 billion in sales.
● Amazon’s profit rose to a whooping 220% i.e., about $8.1 billion when compared to
2019.
● Amazon operated at its warehouses at full capacity and hired multiple people to meet the
enormous rise in business.
● Amazon’s advertising business gained $7 billion in revenue.
Amazon adapted fairly to the growing demands during pandemic, the reason being its
logistics network including warehouses, trucks, plans, vans. Fulfillment by Amazon
served as strength to meet its operational demands.

7. Conclusion
I think covid-19 has left a great impact on usage of e-commerce by consumers
which will last for years to come.
Not only did it change the purchasing behaviour of the consumers, but it also
changed the way retailers positioned themselves in the market. From innovation to
creativity to adaptability, multiple brands were challenged during the pandemic.
The pandemic served as an opportunity for digital marketers to innovate so
that it can adapt to the behavioural shift of consumers. The rapid shift toward
interacting with customers through digital channels during covid-19 sped up the
organizational and industrial transformations by several years.

8. Sources
● https://www.digitalcommerce360.com/article/coronavirus-impact-online-retail/
● https://unctad.org/news/covid-19-has-changed-online-shopping-forever-survey-shows
● https://www.bigcommerce.com/blog/covid-19-ecommerce/#covid-ecommerce-trends
● https://www.ama.org/marketing-news/5-marketing-opportunities-in-the-covid-19-era/
● https://www.nytimes.com/2021/04/29/technology/amazons-profits-triple.html