Many marketing experts predict that e-commerce sales will only increase as COVID-19 infections soar, social distancing becomes standard practice, and more people choose-or are required-to stay home. However, sellers aren't so optimistic. In fact, 36% of sellers predict thein sales will actually decline due to supply chain issues, product shortages, shipping delays, and the potential for demand to drop as the economy fluctuates. Here's what sellers can expect during this turbulent time, as well as tips from e-commerce experts on how to protect your online business and make the most of this opportunity by connecting with your customers. There are a lot of unknowns right now: how far the coronavirus will spread, how the market will respond, and what the overall impact of the pandemic will be worldwide. Though no one truly knows what will happen, these predictions will give sellers an idea of what to expect. Almost half of retailers expect some economic downturn due to the pandemic. However, preliminary data from Quantum Metric shows that e-commerce has recently experienced an average revenue weekly growth rate increase of 52% and an 8.8% increase in conversion rates compared to a year ago. This may reflect a suddem increase in demand as more consumers turn to online shopping. Nearly 75% of U.S. internet users say they plan to avoid in-store shopping because of the pandemic. And with brick-and-mortar retail accounting for 85% of U.S. retail sales, this is shifting day-to-day shopping to online marketplaces. However, this increase in demand will cause other issues, which we'll explore in detail below. Overall, total retail traffic fell 9.1% last week, though, according to Morgan Stanley, and analysts don't believe that e-commerce will fully mitigate these declines. And while consumers are spending on essentials like groceries, sellers of nonessential goods have seen their sales drop by 40% to 60% on Amazon lately, as shoppers limit discretionary spending. With the popularity of Amazon Prime and its free two- day shipping, modern consumers expect fast delivery and will often opt for the product that will arrive fastest. But demands on inventory and shipping delays have made it difficult for even an e-commerce giant like Amazon to deliver on this promise. This means online shoppers are more likely to convert on products they need, even if they have longer delivery windows, to avoid going to brick-and-mortar stores, where inventory may be low on even nonexistent. This has both pros and cons. It's likely to bring in more paid search dollars. However, as supply chain issues increase, third-party sellers will look for ways to limit the impact, such as reducing ad spending. Reference: Ugino, M. (20200). Coronavirus Impact on Ecommerce: Is your store safe?. Adapted from https://www.business2community.com/ecommerce/coron. avirus-impact-on-ecommerce-is-your-store-safe- 02295819 Questions: Q.8. Summarize the case in your own words. 0.9. Explain the impact of Coronavirus on e-commerce.

Many marketing experts predict that e-commerce sales will only increase as COVID-19 infections soar, social distancing becomes standard practice, and more people choose-or are required-to stay home. However, sellers aren't so optimistic. In fact, 36% of sellers predict thein sales will actually decline due to supply chain issues, product shortages, shipping delays, and the potential for demand to drop as the economy fluctuates. Here's what sellers can expect during this turbulent time, as well as tips from e-commerce experts on how to protect your online business and make the most of this opportunity by connecting with your customers. There are a lot of unknowns right now: how far the coronavirus will spread, how the market will respond, and what the overall impact of the pandemic will be worldwide. Though no one truly knows what will happen, these predictions will give sellers an idea of what to expect. Almost half of retailers expect some economic downturn due to the pandemic. However, preliminary data from Quantum Metric shows that e-commerce has recently experienced an average revenue weekly growth rate increase of 52% and an 8.8% increase in conversion rates compared to a year ago. This may reflect a suddem increase in demand as more consumers turn to online shopping. Nearly 75% of U.S. internet users say they plan to avoid in-store shopping because of the pandemic. And with brick-and-mortar retail accounting for 85% of U.S. retail sales, this is shifting day-to-day shopping to online marketplaces. However, this increase in demand will cause other issues, which we'll explore in detail below. Overall, total retail traffic fell 9.1% last week, though, according to Morgan Stanley, and analysts don't believe that e-commerce will fully mitigate these declines. And while consumers are spending on essentials like groceries, sellers of nonessential goods have seen their sales drop by 40% to 60% on Amazon lately, as shoppers limit discretionary spending. With the popularity of Amazon Prime and its free two- day shipping, modern consumers expect fast delivery and will often opt for the product that will arrive fastest. But demands on inventory and shipping delays have made it difficult for even an e-commerce giant like Amazon to deliver on this promise. This means online shoppers are more likely to convert on products they need, even if they have longer delivery windows, to avoid going to brick-and-mortar stores, where inventory may be low on even nonexistent. This has both pros and cons. It's likely to bring in more paid search dollars. However, as supply chain issues increase, third-party sellers will look for ways to limit the impact, such as reducing ad spending. Reference: Ugino, M. (20200). Coronavirus Impact on Ecommerce: Is your store safe?. Adapted from https://www.business2community.com/ecommerce/coron. avirus-impact-on-ecommerce-is-your-store-safe- 02295819 Questions: Q.8. Summarize the case in your own words. 0.9. Explain the impact of Coronavirus on e-commerce.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter6: Statistical Inference

Section: Chapter Questions

Problem 24P: The manager of an automobile dealership is considering a new bonus plan designed to increase sales...

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