How Covid-19 Is Impacting Ecommerce Business?

Before COVID-19, eCommerce was rapidly expanding. However, the pandemic drove even more U.S. customers online, generating an extra $105 billion in online sales in 2020 and speeding eCommerce by two years, according to Digital Commerce 360. 

According to the top eCommerce app development company India, online sales would reach $791.70 billion in 2020, increasing 32.4 percent from $598.02 billion the previous year. That is the greatest yearly growth rate in internet sales of any year for which data is available. 

Because of business closures and consumers’ fear of catching the coronavirus in public, eCommerce flourished in 2020. And data from the first quarter of 2021 indicate that the coronavirus is still having an effect on retail expenditure. Online sales grew 39 percent year over year in the first quarter of 2021, almost tripling the 14 percent growth in the first quarter of 2020 and outpacing the third and fourth quarters of 2020. 

The rapid increase in eCommerce expected in Q1 2021 is most likely due to people spending their stimulus cheques and tax refunds. Furthermore, with coronavirus cases on the rise in January, many customers were still avoiding shops and shopping online. This, along with consumers starting to buy goods for their post-vaccine lives, such as baggage, teeth whitener, and vacation clothing, all contributed to the 39 percent raise. 

Coronavirus wreaked havoc on merchants of all kinds during the last year and a half, and Digital Commerce 360 analysts and editors were there to see it. To learn how shops addressed these new issues, we interviewed hundreds of merchants, performed numerous retailer and customer surveys, and held virtual events and webinars through an eCommerce app development company India.

COVID-19 & Fulfillment 

Coronavirus fuels fulfillment innovation

During the COVID-19 epidemic, retailers and delivery businesses struggled to make on-time deliveries. Despite this, shipments are gradually returning to normal, according to NorthShore Care Supply, which discovered methods to better automate its fulfillment amid the crisis. 

Stores are used by merchants to take advantage of same-day delivery

With shipping carriers at capacity during the epidemic, retailers relied on their own shops and delivery apps to fulfill customer expectations for same-day delivery. Therefore, retailers leveraged the potential of an eCommerce app development company India to build same-day delivery modules.

During the epidemic, Walmart and Target are making use of their shops

The mass merchants increased omnichannel offerings in their hundreds of US shops, resulting in massive increases in online sales. The 2021 Omnichannel Report from Digital Commerce 360 provides more about how retail chains dealt with the epidemic in 2020. 

For merchants this atypical Christmas season, scenario preparation is the name of the game. 

In a normal year, merchants struggle with holiday forecasting and logistical preparation. In 2020, however, establishing a fulfillment plan that properly covers supply chain, inventory management, and delivery choices for the crucial November-December period became a mammoth job. 

COVID-19 Trends and Data 

2020 altered the landscape of food retailing for the foreseeable future. Consumer behaviors were altered as a result of the coronavirus epidemic, requiring food merchants to react rapidly. Millions of families began purchasing food online for pickup or home delivery, and many will continue to do so once the crisis has passed. Therefore, we have compiled the data from various retailers by an eCommerce app development company India to identify the trends in the eCommerce industry.

Due to the pandemic, eCommerce in the United States increased by more than 32% in the fourth quarter

According to Digital Commerce 360, online orders accounted for more than $1 in every $5 spent on retail sales during the quarter. Amazon was responsible for more than half of all eCommerce growth in the United States. 

How businesses handled the Christmas spike in customer service requests 

The coronavirus pandemic resulted in increased internet purchasing, delayed delivery, and customer service queries. These gains were exacerbated over the 2020 Christmas season, with customer support call numbers rising by hundreds of percent. 

In early 2020, how has the coronavirus impacted internet retailers? 

In the near term, merchants selling goods such as toilet paper, face masks, and water bottles saw substantial sales increases as a result of the coronavirus. However, merchants were worried that the coronavirus might have a detrimental effect on their 2020 income. However, retailers were quick to leverage an eCommerce app development company India to build an online presence quickly.

In 2020, internet wine sales skyrocketed due to the pandemic

The COVID-19 issue resulted in a massive increase in internet wine orders. Retailers think that the practice of purchasing bottles and cases online will continue once the epidemic has passed. 

Retailers shift in response to the epidemic

The coronavirus has turned the world upside down, including shopping. Here are some instances of how shops changed their operations to survive – and flourish – during the epidemic.

The online profit margin rose by 38%

Increasing online sales is one thing, but the Covid-19 scenario has also resulted in interrupted supply chains, understaffed customer support, and other issues. This has a direct impact on the online profit margin. According to 38 percent of eCommerce decision-makers, their online profit margin increased during the worldwide shut down, while a comparable proportion (40 percent) said the same. Only 15% reported that it had reduced. 

Covid-19’s effect on the workforce 

Of course, the epidemic has caused some adjustments in the workforce. Approximately 44 percent stated they had to move employees, while three out of ten said they had to recruit additional workers. The flip side of the coin is that 26% had to dismiss some workers and 15% had to decrease their employees’ pay. And, maybe surprisingly for some, 5% managed to raise their wages. Even more shocking, 21% of businesses did not change their personnel at all.


Despite all of the terrible things that happened as a result of the coronavirus epidemic, 2020 wasn’t that bad for many eCommerce businesses. The majority of them (63 percent) believe the year (up to October) has been successful. And 28% say their online company is doing well while their traditional shops are not. And a startling 2% stated the reverse!

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