By: Cesilia Faustina
The point is, since the start of COVID and with lockdown all around, it’s becoming more familiar to bulk buy or online shop. According to Paul Marsden, a consumer psychologist at the University of Arts London, as quoted in CNBC, he saw this trend as: “Panic buying can be understood as playing to our three fundamental psychology needs.” These needs include autonomy, relatedness, and competence.
Online shopping might give us a sense of security and control over our lives, it also may help to make us feel more productive. This is especially the case when you’ve been stuck in your home for months due to lockdown. Having businesses close also does not help the situation, as at times, we are forced to actually move online for our consumption needs.
Grand View Research had shown that the e-commerce sector was expected to grow at a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027. We are looking at a market size of USD 10.36 trillion in 2020 and an expectancy of USD 27.15 trillion in 2027. Of course, these projections were concluded in light of COVID-19 and the rise of faster and more powerful internet connection, such as 5G.
With talks of a developing technological infrastructure, e-commerce is definitely starting to take over the business sector, which is especially true when it comes to B2B relations. B2B e-commerce has been becoming increasingly popular throughout the years, especially now. It helps to reduce operational and inventory cost which provides greater opportunities for businesses out there.
The e-commerce sector is providing new opportunities for businesses and consumers to conduct everyday activities, which is why it is something we need to start embracing for the economy ahead.
If that didn’t convince you enough though, here are a few things to note about why e-commerce is today’s go-to industry.
We live in a digitalized world
The tech sector is continuing to boom. CompTIA projected the tech sector would grow at a rate of 4.2 percent in 2021. With the craziness that has happened in 2020, these numbers should be at a growing increase with Cloud products becoming much more popular. The Cloud market industry was thought to experience significant increase by 2024, with IaaS projected to reach USD 177 billion by 2024 and SaaS was estimated to grow at a rate of 13 percent through 2024. Also, let us not forget about the rise of 5G and the telecom market.
That said, we are witnessing expansion all over the tech sector, which is only fuelling the e-commerce sector. It is creating a conducive environment for the market to grow and expand. And if you think it’s picking up now, imagine what to expect when presented with all these technological advancements.
Convenience and less hassle
The e-commerce sector has definitely made things easier as well. You now do not need to step foot in a shop to look for what you need, when you can just search it online and have it delivered to your doorstep. Who wouldn’t want that? This process is especially useful for businesses, as discussed earlier, when you can simply order products in bulk while saving cost.
Having everything presented through an online platform creates a simpler version of doing things, especially when you’re encouraged to stay indoors. It can help to support the economy while at the same time making life easier for those who have access.
As we all know, the pandemic has taken its toll on the economy and it has definitely not been easy. Many jobs lost, countries going through recessions, it’s not exactly a happy ever after story. As bleak as things are though, many businesses and governments are still pushing for economic development and one of their efforts is through e-commerce. With businesses forced to go online, e-commerce acts as one of the primary means of people still trying to make a living and justifying employment.
Aside from convenience itself, most local companies are shifting online and by consuming and taking part in the e-commerce market, you would be making a great contribution to the economy. If not for the economy, you know it would be nice just to help out your favourite deli down the street or your regular go-to restaurant. This sector is creating a space to support your local communities and economy. I mean, why do you think Amazon is making such big bank?
There’s definitely no denying the power and potential that e-commerce has in our market today. It is one that we should watch out for and embrace for the future. Though COVID might be a challenge, taking advantage of opportunities at hand is never a bad idea and e-commerce seems to be that opportunity.