E-commerce is currently the most trending topic because of the fact that everyone is relying on it due to the Coronavirus pandemic situation. Also because the retailers have closed their stores for the public which is also understandable, we see people are ordering deliveries right at their doorsteps. Now, people say that this is the best thing that can happen to e-commerce at the moment. However, a new report claims that this is not only for short-term but the trend of shopping online will continue for a long term and boost e-commerce sector going forward.
However, it is not all merry and cherry for the e-commerce sector as well because there are some issues that the sector needs to fix before they can say that the retail industry is going to be doomed because of them. “The question becomes how employment, income and the wealth effect play into all of this: If you lose 30% of your 401K, you might not want to buy that extra sweater or other non-essentials,” the report adds.
The report adds that “There are going to be people who thought, ‘I could never not touch an apple before I put in my basket’ who now have been forced to use FreshDirect or AmazonFresh and have now said, ‘That’s a pretty convenient experience. I might do that more.’ Or who have bought meal kits to make home-cooked meals and thought, ‘That’s a much better experience than I would have thought, and I waste less”., “This is a forced way to retrain a broad swath of consumers.”
While e-commerce will definitely benefit in long term, it is expected “the longer term could be 2021,” which means the advantage could not be for next five years or a decade. Also, it is feared that while big e-commerce players will survive, the smaller ones may go out of business as well.