Second Covid-19 wave rocks ecommerce boat, hits consumer spends

Ecommerce hasn’t been able to escape the impact of the ongoing second wave of the pandemic, unlike last year. There had been an almost immediate spike in online orders once the national lockdown was lifted and delivery of all goods was allowed from the middle of May last year. This time around, there is uncertainty among industry executives over recovery in the sector with pandemic impact been visible over the past several weeks.

According to data from Unicommerce, an ecommerce solutions provider, online shopping volumes dipped 11% in April from the month ago. That’s in line with what executives told ET—the effects of the current wave of Covid-19 has hit consumer demand for non-essential segments, both in urban and rural markets. Expectations of a demand revival are driven by the belief that consumers will continue to avoid offline shops and malls. Unicommerce data further showed fashion and accessory sales were down 22% in the same period while eyewear and accessories were down 16%. Only fast-moving consumer goods (FMCG) and agri, and health and pharmaceuticals, saw growth — of 33% and 18%, respectively. Consulting firms and analysts are reviewing the annual growth outlook for ecommerce this year as they are largely concerned with non-metro markets being hit hard this year.