Increase of eCommerce in times of Covid-19

The social and economic context, produced by COVID-19 and by the activation of the state of alarm, is changing consumer habits, mainly highlighting the rise of eCommerce, especially in supermarkets, as well as the increase in card payments.

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This period of confinement is marked mainly by two events: the closure of all those establishments that are not of primary necessity and by the fear of contagion. In this sense, there has been an increase in online purchases in those establishments that remain closed, they are working to try to minimize the losses caused by the closure of physical businesses.

So far in the first quarter of the year, electronic commerce (e-commerce) has experienced growth never seen before. In China, for example, food purchases have skyrocketed. For Carrefour, vegetable sales increased 600% during the Lunar New Year period. For JD.com, a Chinese online retailer, it reported that its online grocery sales grew 215% compared to last year, to 15,000 tons over a 10-day period.

On the other hand, due to the extension of the COVID-19 outbreak at the beginning of February, online sales of certain products have registered significant increases in countries such as South Korea, Italy, and Poland. In Poland, the products with the highest increase were fast-consuming goods, such as dry food, which presented a 160% increase in online sales.

The Brazilian Association of Electronic Commerce (ABComm), in association with Buy & Confie, a market intelligence company focused on e-commerce, publishes a report on the variations in Brazilian e-commerce revenues caused by the crisis of the new coronavirus (COVID- 19).

The study compares sales made in February and March 2020 with those of the same two-month period in 2020 and shows a significant increase in consumption within digital retail. In numbers, the analysis shows that there was a significant increase in consumption in the categories of supermarkets (80%), health (111%) and beauty and perfumery (83%). On the other hand, segments such as cameras, camcorders and drones (-62%), Games (-37%), and electronics (-29%), showed a sharp decrease in the period. The sectors that generally show good results had a significant drop, while others, smaller in electronic commerce, gained importance.

Internet sales today are an essential focus point, and those who market in this way must take logistics into account as a central part of the business model. From Grupo Hasar, a company specialized in the development of technological solutions focused on retail, they point out that transport, availability of stock, returns processes, among others, must be extremely controlled to avoid mismatches in the sales chain, without losing care of logistics and distribution that monitors and exceeds hygiene measures in a more detailed way than usual. Marketing is going to play a critical role in business next year, even more than it normally does.

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The trend is for the scenario to continue in this way, with consumers increasingly involved in distance shopping and significantly moving the consumption of categories related to basic day-to-day needs and the Covid-19 prevention effort.

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