Global e-commerce merchants have generated up to 80% in their revenues in both the second and third quarters of 2020. This is based on a global report ‘One Giant Leap: The Growth of e-commerce Amidst the Covid-19 Pandemic’ released by digital payment platform Payoneer.
The research had about 200,000 international sellers as respondents. According to the study, the sellers have attributed the significant jump in their revenues to the fact that more consumers now prefer to stay home while consumption behavior changes and evolves during the ongoing pandemic.
Payoneer also underlined the common knowledge that e-commerce is continuously growing in contrast with the dismal performance of malls and commercial sites amid the stay-home protocols.
The study also highlighted the reverse relation between mobility and e-commerce. It found that consumers tend to do more online transactions as they become more inclined to stay home. Interestingly, before the pandemic, or in January 2020, the Philippines ranked as No. 1 in the world in terms of Time Spent per Day using the internet regardless of a mobile device (based on a WeAreSocial study). Data shows that an average Filipino consumer spends about 9 hours and 45 minutes each day online.
Another study by the Global Web shows that 48% of Filipinos lean toward online shopping even when the pandemic gets over. This shows how e-commerce is expected to thrive even beyond the post-pandemic world.
Due to supply-chain disruptions, online merchants and sellers have been expanding into new markets for diversification. Thus, the biggest retail chains in the country have started offering online shopping services, which range from e-groceries to delivery via chatbots and hiring of online personal shoppers. The food industry has started offering ready-to-cook meals and curbside pick-up options.
While it took a while for local businesses to diversify their distribution channels, Filipino enterprises were quick to recommence. Analysts agree that this growth can be expected to further develop in the next few years.
Supply chain changes in other countries
Elsewhere around the globe, disruptions in supply chains have prompted businesses to be more creative in keeping up with customer demands. In Europe, several businesses have opened up their warehouses to facilitate faster delivery of goods—a strategy that resulted in 59% and 64% sales increase in the second and third quarter, respectively.
“We have witnessed a remarkable shift in shopping habits this year,” said Payoneer General Manager Eyal Moldovan. “While the rise of e-commerce was previously seen as a gentle slope, it transformed into a steep incline as countries around the world moved into lockdown.”
Payoneer is one of the key players in the fintech industry. It helps ensure that business payments are streamlines and securely processed throughout the expansion and beyond.