Many markets are already recovering from the effects of coronarasis.
The coronovirus epidemic in the world has changed entire industries and patterns of behavior for companies and consumers. The international online payment platform, Payoneer, conducted a survey among more than 200 online sellers from eight countries and produced The Global Seller Index, a traditional report on the global e-commerce market under the influence of COVID-19. Here are some of the major trends for the world’s major e-commerce markets: China, USA, UK, Korea, Europe and India.
In 2020, China achieved the status of a leading country in the field of international online trading. In the first quarter of this year, cross-border vendors’ revenue grew by 25% year on year. Many managed to avoid major losses in sales due to the epidemic, as they managed to buy goods before the Chinese New Year celebrations.
The main problems touched the logistics industry. To overcome difficulties in the supply chain, many companies began to use the services of commercial charter flights, despite the high cost. Starting in the second quarter, there are signs that the Chinese e-commerce market is beginning to recover.
United States and Britain
Online retailers from the United States and the United Kingdom reported a 53% increase in annual sales in the first quarter of 2020. A significant increase in sales has been reported since the outbreak of the COVID-19 pandemic, particularly for essential goods or that customers can use at home.
The Korean e-commerce industry grew sales by 45% in the first quarter of 2020 compared to the same period last year. However, due to the impact of the epidemic, Korean vendors were forced to contend with strict border controls throughout Southeast Asia. This led to a 50% decrease in sales in the region.
Starting in the second quarter, Korean online retailers have sought to expand their business through the development of various trading platforms, hoping to improve the situation soon.
According to the study, the number of online sellers in Spain increased by 30% compared to last year, in France – 13%, in Italy – by 85%. During the difficult first quarter, vendors in France succeeded in boosting international sales by 12% on the year. This is likely due to the more developed e-commerce ecosystem. On the other hand, the epidemic had a strong effect on sellers in Italy and Spain – their sales fell by half.
In general, experts predict not only the restoration of the European e-commerce industry, but also its prosperity.
In recent years, international online trading in India has been continuously evolving, as compared to the same period last year due to an 8% increase in sales in the first quarter of 2020.
However, due to the effect of coronaviruses, the forecast for the second quarter and beyond is less optimistic. Thus, Amazon and Flipkart services in India were suspended due to the isolation of 1.3 billion people and severe disruptions in the supply chain.
Many e-commerce companies feel that an epidemic will eventually benefit their business. Experts are sure that if online sellers can find the “right product” that people need during quarantine and in the future, after COVID-19, sales in e-commerce will be higher than before coronavirus.
In the second quarter, there are signs that the industry is recovering in all countries analyzed, except for India, where supply chain disruptions have proved difficult for local businesses to overcome.
In addition, experts predict the acceleration of digitization and say with confidence that only online sellers will have success in the future, whose business will be as digitized and optimized as possible. And the use of high-tech online payment solutions is an important part of a successful business in e-commerce.
Read: Top e-commerce trends in 2020