At the moment, one of the worst epidemic outbreaks of the decades is taking place and we are talking about China’s Wuhan virus, also known as novel coronavirus. This virus, which started from Wuhan which is in Hubei province of China, has now spread all over the world due to people travelling to Wuhan from most parts of the world.
Due to this, China has locked down Wuhan in such a way that no modes of transport are coming in and out of Wuhan. However, this has an impact on business and this relates to eCommerce industry as well.
You would be well aware that China is one of the biggest exporters of goods all over the world. The eCommerce platforms of China such as Aliexpress and others ship products all over the world but this virus outbreak means that everything is stranded right now with no solution in sight. At the moment, we know that most countries have reported at least one case of Coronavirus which does not take time to spread.
The impact on businesses due to this virus outbreak can also be seen from various companies’ earnings call as well where they have lowered their estimations for the first quarter of this year.
One thing that eCommerce companies, as well as payment providers, are betting on is the thinking that people confined to their homes will make impulse buys. But it is also a fact that the supply chain could be disrupted and no one might be available to deliver the products so buying might not be possible at all.
Apple is also one of the companies hit by coronavirus’ impact as its iPhone supply has been estimated to decline as China has told to shut down all of its factories for a period of time due to the virus outbreak.