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Online Shopping Not at Its Peak yet – Further Upward Trend Expected
Fast internet connection and the pandemic have caused a major increase in e-commerce, but does economy adjust to it?
E-commerce is becoming more and more popular – thanks to modern technologies and great internet, but also due to the pandemic. This is how buyers, sellers and parcel services react to the increase in online shopping.
Studies from the year of 2019 show that almost 2 billion people decided to purchase items on the internet. The e-commerce gross turnover was 3,5 trillion USD that year. What seemed to be an all-time high was just the beginning of a steep trend. But why is online shopping so popular with people all around the world? Scientists answer this question with the access to the internet – nowadays, the World Wide Web is accessible in almost every area of the world. At the same time, the internet has become a lot faster – thanks to better connectivity and to more elaborate technologies.
When the Covid pandemic lead to the first lockdowns in 2020, many governments decided to close down local stores for a while so as to lower the risk of infection. During that time, even more people began discovering online shopping and its advantages. As they also spent more time at home, many families started working on home improvement projects, which caused an even higher demand for online shops. The pandemic has been a big booster for e-commerce, and it still is.
How Economy Reacts to the New Demand
Well-established online shops that have been around for years benefit from the increased demand for online retail sales. Their systems are elaborate and not very prone to failure. Smaller shops have begun working on their online sales system so as to make sure to be able to react to a higher demand. Other stores, which sold their products locally only, started to create online shops when the pandemic forced them to find new distribution channels.
Another branch of the economy has been affected by the increase of online shopping as well – the transportation industry. More e-commerce leads to a higher demand of shipping. But the increased parcel volume has brought many providers to their limit. As of now, they seem to have adjusted after a short time lag. Bigger vehicle fleets and new drivers make it possible for parcel services to get packages from the seller to the buyer within a short amount of time. The EMS live tracking makes it possible for customers to track their orders online and in real-time. For even more effectiveness, the online tracking service can be used for various popular parcel services in the country: DHL, USPS, UPS, EMS, China Post and Yun Express. That way, customers always have the opportunity of finding out about the whereabouts of their package and about the estimated delivery date – especially for orders from abroad that are transported by two or more separate transportation providers, it can be very convenient.
Modern Merchandise Management Systems
As the trend around e-commerce began, many parcel services reacted by switching from hand-signed delivery papers to electronical devices that are connected to the company´s merchandise management system. Those devices can also be used at parcel junctions or at transfer stations. By scanning the barcode, DMC code or QR Code on a package, they send all the information in to the superordinate system. As soon as the information has been registered there, answers on single parcels can be found in the system. Tracking codes make it possible for customers to get information about the connected order.
Local Sellers in the Future
It is hard to tell how long the pandemic will last. Many local stores may not get through it without prejudice. But the ones that understand the current situation as a stepping stone to new ways of generating customers have a fair chance to continue their business. By clearly addressing their target group and by implementing online sales and services, they can even now benefit from the “support your local” movement. That way, customers can combine the advantages of online shopping without feeling bad towards small businesses. The upward trend of the online retail shopping branch will last for a while before it arrives its peak.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes