E-commerce was one the first affected industries when the COVID-19 hit China. There was a supply-side crisis and many e-commerce stores were unable to source the goods to sell.
Our dropshipping stores came to a stand-still. All other businesses, e-commerce or offline, that relied on China for sourcing or production of goods are in the same boat as us.
But the e-commerce stores that rely on sourcing and shipping products locally or domestically are set to post growth and higher profits. As more and more countries are advising social-distancing, many people around the world are staying at home. This trend will continue to increase in the coming weeks. During the social distancing period, many people are relying on e-commerce services for grocery and other essentials.
Proof of this can be seen by having a look at e-commerce platforms in China tailored to serve the local customers. Carrefour in China has reported 600% growth in sales in Q1 while JD, one of the largest e-commerce services in the world, has reported 200% increase in sales during the first quarter.
2020 is not only going to be a good year for those associated with domestic e-commerce, especially grocery, but such businesses could continue to see more demand beyond the 2020 as well. The current pandemic situation has shown a unique use-case for e-commerce platforms and has proven the need of such businesses in times like these.