The Impact of COVID-19 on the Surge in Online Shopping Across the Globe
The COVID-19 pandemic has had a profound impact on the world economy, and one of the most notable changes has been the surge in online shopping. With lockdowns and social distancing measures in place, more people than ever are turning to online shopping to purchase essential items and luxury goods alike. In this blog post, we explore the impact of COVID-19 on the surge in online shopping across the globe.
Top Items Searched and Purchased
As the COVID-19 pandemic swept across the world, there was a surge in demand for certain products, including personal protective equipment (PPE), cleaning supplies, and groceries. Online retailers saw a massive uptick in searches for these items, as well as for home office equipment such as desks and chairs. Additionally, with people spending more time at home, there was a rise in searches for entertainment items like books, games, and streaming services.
In America, the top items searched and purchased during the pandemic were groceries, cleaning supplies, and personal protective equipment (PPE). The geographical distribution of online shopping also shifted from urban areas to more rural areas as people tried to avoid going to crowded stores.
According to a survey conducted by Nielsen in the US during the pandemic, the top items searched and purchased were groceries, household cleaning supplies, and personal protective equipment (PPE). The survey found that there was a 200% increase in online grocery shopping, and a 15% increase in household cleaning supplies during the pandemic (source: https://www.nielsen.com/us/en/insights/article/2020/covid-19-tracking-the-impact-on-fmcg-e-commerce/).
Additionally, a report by Statista showed that in the US, the e-commerce sales of food and personal care items increased by 61% in 2020 (source: https://www.statista.com/statistics/1101145/coronavirus-impact-on-e-commerce-food-personal-care-us/)
In Europe, online shopping surged by almost 50% during the pandemic, with clothing and home appliances being the top items purchased. The United Kingdom had the highest online shopping penetration, followed by Germany and France.
“European Online Retail Sales Grow by 30% in 2020,” Ecommerce News Europe, 2021. (source: https://ecommercenews.eu/european-online-retail-sales-grow-by-30-in-2020/).
“Online Retail Purchases in Europe Rose 50% in April,” Retail Gazette, 2020. (source: https://www.retailgazette.co.uk/blog/2020/06/online-retail-purchases-in-europe-rose-50-in-april/).
“The European E-commerce Market,” Ecommerce News Europe, 2021. (source: https://ecommercenews.eu/the-european-ecommerce-market/).
“Online Shopping During COVID-19: A Study of European Consumers,” McKinsey & Company, 2020. (source: https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/online-shopping-during-covid-19-a-study-of-european-consumers).
In the Middle East, online grocery shopping saw a massive surge during the pandemic, with delivery services being the most sought after. The United Arab Emirates (UAE) and Saudi Arabia were the top countries in the region with the highest online shopping penetration.
According to a report by GlobalData, the online grocery retail market in the Middle East and North Africa (MENA) region grew by 83.6% in 2020 due to the COVID-19 pandemic. The report also states that online delivery services, including grocery delivery, saw an increase in demand during the pandemic. (source: https://www.globaldata.com/online-grocery-market-middle-east-north-africa-mena-grew-83-6-2020-says-globaldata/)
In a survey conducted by Dubai-based Carrefour in 2020, 60% of respondents in the UAE said they had increased their online shopping during the pandemic, with grocery and household essentials being the most frequently purchased items. (source: https://www.thenationalnews.com/business/retail/uae-consumers-now-doing-60-of-their-shopping-online-says-carrefour-1.1098255)
Similarly, a survey by Dubai-based YouGov in 2020 found that 58% of respondents in Saudi Arabia increased their online shopping during the pandemic, with 44% of respondents saying they purchased groceries online. (source: https://gulfbusiness.com/survey-saudi-online-shopping-skyrockets-during-covid-19-pandemic/).
In India, online shopping saw a significant increase, with electronic goods and groceries being the most popular items purchased. E-commerce giant Amazon reported that their grocery sales in India had tripled during the pandemic.
Covid-19: Online grocery sales triple as India steps up lockdowns. (source: https://economictimes.indiatimes.com/industry/services/retail/covid-19-online-grocery-sales-triple-as-india-steps-up-lockdowns/articleshow/75096927.cms).
Covid-19 impact: E-commerce firms halt pickups from vendors. (source: https://www.businesstoday.in/current/corporate/covid-19-impact-e-commerce-firms-halt-pickups-from-vendors/story/398387.html).
Covid-19 Impact: How Indian e-commerce firms are tackling disruptions. Financial Express, March 2020. (source: https://www.financialexpress.com/industry/sme/covid-19-impact-how-indian-e-commerce-firms-are-tackling-disruptions/1903994/).
E-commerce in India: Revenue forecast 2017–2024, Statista. (source: https://www.statista.com/statistics/688785/e-commerce-revenue-forecast-india/).
India’s E-commerce Market Sees Major Boost During COVID-19. (source: https://thediplomat.com/2020/05/indias-e-commerce-market-sees-major-boost-during-covid-19/).
Geographical Distribution of Online Shopping
Online shopping has become increasingly popular worldwide, but there are regional differences in the ways people shop online. In the Americas, for example, e-commerce sales are dominated by the United States and Canada, while in Europe, countries like the United Kingdom, Germany, and France are the biggest players. In the Asia-Pacific region, China, Japan, and South Korea are the largest e-commerce markets.
- According to a report by Adobe, US online sales in 2020 reached $813 billion, which is an increase of 42% YoY. (Source: Adobe Digital Economy Index)
- In the UK, online sales increased by 46.1% in 2020, with online spending hitting £99 billion. (Source: Office for National Statistics)
- In China, online retail sales increased by 14.8% YoY in 2020, reaching $1.53 trillion. (Source: National Bureau of Statistics of China)
- In India, the e-commerce market is expected to reach $99 billion by 2024, with a CAGR of 27% from 2019 to 2024. (Source: Research and Markets)
- In Brazil, e-commerce sales grew by 73% in the first half of 2020 compared to the same period in 2019, reaching $38.8 billion. (Source: E-commerce Brasil)
- A survey by Accenture found that 60% of consumers plan to continue shopping online even after the pandemic is over. (Source: Accenture)
- Another survey by McKinsey found that e-commerce penetration in the US increased from 16% in 2019 to 27% in 2020, and that this trend is expected to continue in the coming years. (Source: McKinsey)
Overall, these figures suggest that the impact of COVID-19 on the surge in online shopping has been significant and is expected to continue in the coming years.
Impact of COVID-19 on E-commerce in Different Regions
The impact of COVID-19 on e-commerce has varied from region to region. In North America, for example, the pandemic led to a 129% increase in e-commerce orders in April 2020, compared to the same period the previous year. In Europe, online sales grew by 36% in the first few months of the pandemic, with the largest increase seen in the United Kingdom. In the Asia-Pacific region, COVID-19 has accelerated the shift towards e-commerce, with online sales in China expected to surpass those of the United States in 2021.
Percentage of online shoppers making at least one online purchase every two months
Fall of average online spending per month since COVID-19, per product category
Future of E-commerce in a Post-COVID World
It’s clear that the COVID-19 pandemic has had a significant impact on the way people shop, and many experts believe that the surge in online shopping is here to stay. As more people become accustomed to the convenience of shopping from home, it’s likely that e-commerce will continue to grow and evolve in the coming years.
Conclusion
The COVID-19 pandemic has had far-reaching effects on the global economy, and the rise of online shopping is just one of the many changes we’ve seen in recent months. As we move forward, it’s important to understand the impact of COVID-19 on the surge in online shopping, and how e-commerce is likely to continue evolving in a post-pandemic world.
