While many retailers, restaurants, food chains, and small businesses are still facing economic distress due to the lockdown, a few cases escape this bad luck. Such is the case of online commerce, the rising star in a very complicated game.
THE GROWTH OF E-COMMERCE DURING THE PANDEMIC
The e-commerce boom driven by the Covid-19 crisis doesn’t appear to be slowing down in the second half of 2020, as July package volumes surpass the average monthly volume of the first three months of the outbreak. An example of this, is the e-commerce giant, Amazon which is having to manage deliveries on itself to handle the increased demand for online orders.
According to data from the consulting company ShipMatrix, Amazon shipped 415 million packages in July compared with a monthly average of 389 million between April and June. The Company also delivered nearly two-thirds of its own packages in July, this means 5% more than it had between April and June.
Despite Amazon’s surge in self-delivery, UPS and FedEx also saw a boost in volume in July, according to ShipMatrix.
UPS saw volume grow from 23% to 26% in July, and FedEx volume rose from 19% to 22%, both compared with average monthly growth of 23% in the April to June period. This shows that not only is Amazon growing, but e-commerce, in general, is increasing.
WALMART AND INSTACART: THE CASE AGAINST AMAZON
By offering quick delivery, big chain grocers have a stronger position against Amazon, which offers grocery delivery services Amazon Fresh and Amazon Prime Now from its own warehouses and Whole Foods stores.
Amazon delivers items for free, with a Prime membership, within two hours, and or $7.99, customers can get one-hour delivery on orders over $35. Walmart seeks to equal this speed. Instacart already partners with or delivers goods from Aldi, Target, Costco, Albertsons, Kroger, and Walmart’s Sam’s Club, along with smaller grocers and drug stores.
At a moment when habits are changing, many people choose to receive purchases at home and e-commerce is being benefited by the crisis. Taking advantage of this is a smart move to increase sales and to prepare for what may be a permanent trend.