EU eCommerce Associations: Covid-19 Leads to Decreased 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.

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, in the end, the coronavirus will lead to less revenue for many players across Europe.

Ecommerce Europe conducted research between 17 and 19 March, among the national ecommerce associations, company members and business partners. According to the research, 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.

The expected decline in revenue will come mostly because of lower sales (said by 70 percent), followed by lower demand and a lack of stocks (both 45 percent).

Ecommerce Businesses in Australia Join Hands to Survive Coronavirus

Australia’s online retailers have come together in a virtual ‘war room’ to share ideas and offer support in the face of the escalating coronavirus pandemic.

A Slack group started on a whim by Adore Beauty co-founder Kate Morris just over a week ago now has more than 180 participants and become a wide-ranging conversation on everything from how to make warehouses more hygienic, to whether head office staff should start working from home, to how to prepare for total lockdown.

“This is the fight of our lives, and we’ve been given no time at all to prepare for it,” Morris said.“When these sorts of things happen, you’ve just got to band together. If at the very least, to support each other as human beings, because a lot of people will have to make horrible and difficult decisions”, she added.

According to reports, Australian consumer confidence plunged to a 30-year low, and March sales are expected to drop sharply in most categories outside the supermarkets.

Online Platform Launched in Germany to Help Local Business Owners

A new online platform, called #supportyourlocal, has been launched to support local business owners. The non-profit project urges consumers to buy vouchers, so that business owners who need to close their doors, can still generate some revenue.

“The coronavirus and quarantine measures are hitting society hard. Many local business owners have to close but do not have the financial reserves to survive weeks without any turnover. It is to support such businesses that we have launched #supportyourlocal as a non-profit project”, the website explains.

To support local businesses like cafés, bars, restaurants and shops, the online platform lists companies that offer online vouchers. These vouchers can then be redeemed once the quarantine measures end. “This way, the owners can continue to pay their employees, feed their families and pay their bills, and you can look forward to brunch with friends or a cozy afternoon with coffee and cake at your favorite café around the corner!”

#supportyourlocal works with Firstvoucher (“there is no business partnership”), which allows retail businesses to start their own voucher shop for free. Firstvoucher won’t charge any fee for the first two months after registration.