Cross-Border eCommerce business: COVID-19 impact.

It  particularly interesting to look at those industries that even in a fundamentally negative situation were able to record positive effects over various time dimensions such as the cross-border eCommerce market.

In this context, accelerated digitization, e.g. in educational institutions or in the business environment, is always mentioned in the first place. It is therefore assumed that there will be a permanent decline in business travel, an accompanying change in tourism and growth in the infrastructure required for home offices and home schooling.

On the other hand, it has been just as impossible to obtain printers, headsets or computers from local retailers as it has been for many other items of daily or non-daily use.

Now at the latest, cross-border eCommerce has become an essential component for consumers – and will become even more so in the future.

According to a survey by the German digital association Bitkom, more than 50% are convinced that online trade has become a central supply function. Since the beginning of the Covid 19 pandemic, more than 20% have been shopping on the Internet. In a study by Forrester Consulting, as many as 70 percent of consumers said they had bought more than usual.

On the supply side, retailers had to find quick answers to the corona crisis online – despite an unprecedented reduction in capacity, cross-border air traffic has made a decisive contribution to maintaining trade here. A third of those surveyed also stated that digital channels were vital to their business.

The study by Forrester Consulting reveals further impressive results. According to the study, 50 percent of customers ordered products online that they had never purchased online before.

It is interesting to look at the effects in individual industries. While orders for food and everyday goods have risen by 15%, as have DIY items and toys (5%), only the fashion industry has declined. Here, however, the factor of short-term consumer uncertainty plays a special role.

Another study by Kantar shows that in France, Germany and the UK, the three largest e-commerce markets in Europe, the proportion of consumers who make 50% or more of their total online purchases has increased dramatically. The same study also found that 60% of consumers will continue to shop online as much as they do now, even after the pandemic is over. The proportion of those who will choose to buy cross-border eCommerce will increase.

Similar reports from Nilsen for the Asian market show similar results:
The increase in online purchases of non-FMCG products during COVID-19 is likely to continue, with many shoppers planning to continue buying clothing, cosmetics and electronics on online platforms even after the pandemic ends.

And according to management consultants Capgemini, consumers worldwide are planning to increase their online retail transactions more in the next 6-9 months.

According to all studies three results remain to be held:

  1. Online purchases, including cross-border eCommerce purchases, are becoming increasingly important worldwide.
  2. The physical movement of goods intercontinental is only possible with the integration of air traffic, as fast delivery has a significant impact on the customer experience.
  3. The corona pandemic has an accelerating catalytic effect on this development.

 

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