EU ecommerce associations: Covid-19 leads to less revenue
The outbreak of the coronavirus (Covid-19) has a significant impact on ecommerce in Europe. Most national ecommerce associations think that it will lead to a decline in sales and a release of staff.
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One might think that, because of the closure of many physical outlets, ecommerce is booming. Even as this is the case for some online stores like supermarkets or consumer electronics retailers, at the end, the coronavirus will lead to less revenue for many players across Europe.
This is also confirmed by research from Ecommerce Europe. Between 17 and 19 March, the umbrella organization interviewed national ecommerce associations, company members and business partners.
Decline in sales and partial or complete close of business
Two-thirds of respondents (65 percent) expect the pandemic will lead to a decline in sales, a partial or complete closure of business during quarantine measures and the release of staff. A slightly lower share thinks the virus will lead to financing problems , while 55 percent expect delivery delays or replenishment disruptions.
The expected decline in revenue will come mostly because of lower sales (said by 70 percent), followed by lower demand and a lack in stocks (both 45 percent).
Lower sales, lower demand and a lack in stocks lead to decreased revenue.
Ecommerce Europe also asked its respondents which specific product sector is profiting and which one is suffering from the outbreak. Among the profiting sectors are healthcare, grocery retail and consumer electronics. Among the suffering sectors are tourism, transport, physical retail and event industry.
Tourism and transport are among the suffering sectors.