The COVID-19 pandemic has had both positive and negative impacts on e-commerce in India. Positively, the pandemic increased online shopping and the e-commerce industry is on track to reach $200 billion earlier than expected as consumers avoid leaving home. However, supply chain disruptions, understaffed customer support, and new taxes have negatively impacted profit margins for some e-commerce businesses. While 75% of consumers plan to continue or increase online shopping post-pandemic, delays in deliveries and shipping restrictions have created challenges, as have increased demand outstripping capacity in some industries like food delivery. Newer e-commerce businesses and even experienced ones are facing difficulties adapting to the transition online and with issues like delayed payments
The COVID-19 pandemic has had both positive and negative impacts on e-commerce in India. Positively, the pandemic increased online shopping and the e-commerce industry is on track to reach $200 billion earlier than expected as consumers avoid leaving home. However, supply chain disruptions, understaffed customer support, and new taxes have negatively impacted profit margins for some e-commerce businesses. While 75% of consumers plan to continue or increase online shopping post-pandemic, delays in deliveries and shipping restrictions have created challenges, as have increased demand outstripping capacity in some industries like food delivery. Newer e-commerce businesses and even experienced ones are facing difficulties adapting to the transition online and with issues like delayed payments
The COVID-19 pandemic has had both positive and negative impacts on e-commerce in India. Positively, the pandemic increased online shopping and the e-commerce industry is on track to reach $200 billion earlier than expected as consumers avoid leaving home. However, supply chain disruptions, understaffed customer support, and new taxes have negatively impacted profit margins for some e-commerce businesses. While 75% of consumers plan to continue or increase online shopping post-pandemic, delays in deliveries and shipping restrictions have created challenges, as have increased demand outstripping capacity in some industries like food delivery. Newer e-commerce businesses and even experienced ones are facing difficulties adapting to the transition online and with issues like delayed payments
E-commerce INDIA Good Impacts of COVID – 19 on E-commerce INDIA
According to market analysis conducted prior to the
Covid outbreak, India's e-commerce business would expand to $200 billion by 2026. Following the epidemic, recent statistics imply that the 200 billion dollar goal may be met much sooner than expected, owing to an increase in consumers choosing for online deliveries due to fears of infection if they leave their homes. The e- commerce industry is being influenced on both the supply and demand sides, and although some businesses are able to adapt and respond to the changes, others are unable to do so due to the nature of the restrictions imposed. While increasing online sales is one thing, the Covid-19 scenario has also resulted in supply chain disruptions, understaffed customer support, and other issues. This has a direct impact on the profit margin on the internet. During the global lockdown, it appears that 38 percent of ecommerce decision-makers saw an increase in their online profit margin, while a comparable amount (40 percent) saw no change. Only 15% of those polled said it had become worse. 75 percent anticipate to keep or grow their internet purchasing after the outbreak. We wanted to test if the rise in online buying that we've seen since the commencement of the COVID-19 situation will continue once the crisis ended. Fortunately, 51 percent indicated they intended to shop online as least as much as they do now following the epidemic, and 24 percent said they anticipate to increase their online shopping. Other ecommerce categories.
In addition to groceries, ecommerce
encompasses a large range of products from a variety of areas. The COVID data on online shopping behavior has been updated frequently by Common Thread Collective, as shown in the chart below. While ecommerce performance isn't typically improving or declining, segmenting the data by vertical reveals more information. BAD IMPACTS OF COVID – 19 ON E- COMMERCE INDIA However, the impacts of COVID-19 pandemic are not one-sided; they are in fact double-sided. On one hand E-Commerce is experiencing a boom in production and earning unimaginable profit while on the other hand these businesses are facing new tax impositions that is a great hurdle for them to tackle as it will reduce the selling rate. Then the problems that are causing great troubles in the normal running of E-Commerce business is the delay in delivering the products to the customers and the process of shipping is also badly affected because of the restrictions on vehicles. Moreover there is an unexplainable burden on the certain branches of this industry that it is really tough for the employees to handle the outnumbered influx of the customers especially the food related sectors. Another issue that the E-Commerce business is facing is that people who are new to this domain are unable to understand the pros and cons of this delicate business, and the transition from the physical business to the digital one is difficult to digest. Not only beginners, but trading companies with extensive exposure to E-Commerce are also experiencing difficulties as a result of issues such as delayed payments. THANK YOU