Covid-19 has impacted the global economy in a host of unprecedented ways. Industries like retail, leisure and events have all suffered greatly. But there are certain sectors which have managed to thrive during this time.
Consumer spending accounts for a significant portion of the UK’s economic health. When UK shoppers determined that they weren’t going to be allowed to shop at physical stores selling non-essential goods, they quickly made the switch to buying online. With lots of hours to fill, the public were hungry for sources of entertainment and self-improvement. And so they began to shop online in greater numbers than ever before.
The biggest beneficiaries were those who already had the systems in place to cope with this surge in demand. Amazon has gone from being a global giant to an almost unstoppable titan. But smaller online businesses have also found themselves borne upward by the upswelling of online demand.
Of course, as well as the online retailers themselves, those charged with actually delivering the products to the customer’s front door have also benefited.
Ashley Taylor, Parcel2Go‘s Head of Commercial, had the following to say: “Since the COVID-19 pandemic, Parcel2Go has seen an incredible surge in demand. As consumers have been housebound, there has been a surge in online purchases via retailers & marketplaces, as well as people sending items to loved ones. As a result, more & more people and SME’s have been looking for shipping solutions which met their needs. As Parcel2Go offers access to nearly all major UK couriers, we’ve seen over 10,000 new customers a week come to Parcel2Go to access courier services via our website. Couple this with an increase in items being shipped via our existing customers, we’ve seen 400,000 parcels a week being shipped though the comparison website”.
This is a trend that you’ll find reflected across the global shipping industry. Given that it is B2C physical stores that represent the most pressing danger of contagion, it is these stores which have made the switch to e-commerce.
All of this poses a question: what does the future of retail look like? Given the unprecedented nature of the current times, it would be a very brave person indeed who’d make predictions. With that said, it’s unlikely that shoppers will revert to their old habits over night when the coronavirus no longer becomes a risk.
The biggest barriers to shopping online are those presented at the outset. After a customer has made a purchase in this way, they’ll be emboldened to repeat the experience. Moreover, saved passwords and billing information, and targeted promotions, will make the experience that much simpler. It’s therefore likely that many of the customers that the industry has picked up over the last few months will remain customers for life.
