Life before 2020 was a lot different from what we have today; businesses were mostly done from person to person. This happened regardless of how many business owners have tried to push the idea of carrying out transactions online. However, all of that changed when the world was faced with a pandemic in 2020; we had no other choice but to focus solely on doing business without direct physical contact.
The effect of Covid-19 on Retail And E-Commerce
Before the world was faced with the covid-19 pandemic, online shopping had an annual growth of 4.5 percent. This seems like an impressive number until you realize that the growth has tripled since the pandemic. The world was in complete lockdown when the pandemic broke out. Only health workers and delivery workers were allowed to move around. Businesses had to close, and retailers had to develop innovative ways to make money and get their goods and services to consumers and clients; they had to turn E-commerce. Although not all businesses could survive in that space, some of them completely shut down while others filed for bankruptcy.
E-Commerce and Digital Financial Services
While the pandemic caused a spike in online businesses’ growth, financial services had to improve, and some new ones were birthed. This development was a no-brainer as the financial services were the channels through which these payments were made. Services like insurance, digital payments, and credit are currently offered by non-financial firms at their point of sale.
The pandemic saw the growth of companies like Alibaba, Jumia, MercadoLibre, and Amazon as they provided goods and services online. As a matter of fact, the CEO of Amazon, Jeff Bezos, became the richest person on earth according to Forbes, during the pandemic. The companies mentioned above added digital payment facilitation to their services to expand their reach.
A pandemic with new opportunities
The unexpected occurrence of the pandemic left the world uncertain when it first arrived. Everyone had a lot of questions in their mind; no one knew what to do from there. Turning to the digital way of life was more like a last resort than a “choice.” However, this last resort turned out to be a blessing for everyone who maximized it. In most countries, there was a spike in unique digital shoppers. The only countries that did not experience such an increase were restricted from economic activities, and these countries were few and far between.
According to a report, there has been a wild growth in the E-commerce rate in regions like the middle east, the United States, and Africa. This growth reshaped business operations and consumer behavior. The pandemic broke out a year ago, and it already seems like this new way of business is the only way there is. It is no more away; it has become “the way.” Apart from the pandemic causing business owners and consumers to turn to E-commerce, it caused a spike in demand toward digital commerce.
During the first few weeks of the pandemic, there was a hundred percent increase in demand for pharmacy products and essential goods. This report was made by MercadoLibre in Latin America. While in Africa, the online merchant Jumia reported that they had a four times increase in the demand for groceries. And Amazon had a 37 percent sales increase from the previous year when the pandemic hit.
Several companies still struggle with this shift, and it is quite sad to see. Although, it is understandable that not everyone can move from one mode of operation to another without going through stress. However, you do not have to bother about that because our IT service helps you with all that digital transformation. Our dedicated team will ensure your business blends seamlessly with this new era. At the same time, you operate with the same mode of operation.
The new normal
Apart from causing a spike in the growth of existing digital businesses, the covid-19 pandemic caused an awakening. Many digital businesses changed their operations method and gained prominence in regions like Latin America, Asia, and Africa. They saw the opportunities that “the new normal” brought and ran with it.
This will certainly cause the birth of new platforms that focus on specific niches. Of course, if their services are worth it, they will experience rapid growth like the ones mentioned above. This is already happening as we have seen people take to E-Commerce to sell unconventional goods online. Others provide services that will not be seen online before the pandemic. An example of this is a company called Compre Local in Brazil that provided a simplified payment solution for their clients to locate and acquire small items from upstart businesses close to them. The story of Compre Local means that our IT services can and will help you adapt to this new normal regardless of the type of goods and service you render or intend to render.
