Impact of COVID-19 on Online Shopping
Impact of COVID-19 on Online Shopping
I also declare that this project is submitted by me after studying the customers for the
partial fulfilment of our [Link] degree course of university of Calicut.
Place: Perumpilavu
HIBA FATHIMA Date:
Reg. No. ARARBCMOC
ACKNOWLEDGEMENT
HIBA FATHIMA
Reg. No. ARASBCM041
Tables of contents
Chapter TITLE PAGE NO
No
1 INTRODUCTION
2 REVIEW OF LITERATURE
3 THOERITICAL FRAMEWORK
4 DATA ANALYSIS
BIBLIOGRAPHY
APPENDIX
LIST OF TABLES
The world is facing one of the worst disasters in the history. As the world is in
the devastating situation and countries have been put under lockdown, restrictions
have been imposed on going out of homes, arranging crowded events, going in
markets, almost every business has been shut down in the world in the wake of
COVID-19 and people are stressed to stay in homes. Hence people cannot go in
markets for buying products, so this is probably pushing people to do online
shopping.
Online shopping allows people to fulfil their needs staying at home and without
going markets. This research intends to investigate if corona virus is pushing
people do online shopping and it is also focused in this study to know if the
people will continue doing shopping online with the same rate as they are
doing now when the markets are closed and they are also strictly barred from
going in markets.
STATEMENT OF PROBLEM
The problem is to find out the study on impact of COVID-19 on online shopping.
OBJECTIVE OF STUDY
The aim of this report is to know if the corona virus is pushing people to do
online shopping besides this, it is also examined in this study that if people will
continue buying products online with the same rate in future when corona virus is over.
To study change in the perception of online shopping for consumers during
the Covid-19 epidemic.
To study information regarding the current economic situation.
To study Growing levels of economic uncertainty during the Covid-19
crisis.
To study the effects of COVID-19 on consumer behaviour.
To study how online shoppers react to their purchasing behaviour during
Covid-19 time
To study ,if corona virus is pushing people do online shopping
SCOPE OF STUDY
The scope of the study is very wide. The study covers purchasing and selling
services over internet without the need of going physically to the market. The
COVID-19 pandemic has accelerated the shift towards a more digital world. The
changes we make now will have lasting effects as the world economy begins to
recover. The scope of study has been spread around the following issues and tried
to address it within the prevailing economic condition.
The aim of the study was to investigate the factors affecting consumers’ internet
shopping behaviour during the corona virus disease (COVID-19) pandemic in
kunnamkulam taluk. The study measured the influence of product factor, price
factor, time saving factor, payment factor, security factor, administrative factor,
and psychological factor on consumers’ internet shopping behaviour during the
corona virus disease (COVID-19) pandemic.
RESEARCH METHODOLOGY
Sources of data-
The questionnaire has been circulated on social media for collecting responses from 30
customers in around kunnamkulam.
Sampling technique-
For the study convenient sampling technique method has been applied on the basis of
suitability for the availability of information and which has a substantial share on the
market so as to give more accurate picture of the impact of online shopping.
In spite of all sincere efforts, the study is not fool proof in [Link] suffers from variety
of limitations due to the following reasons:
RESARCH DESIGN
Based on needs and objectives, type of data required for study and
source of data identified.
STATISTICAL ANALYSIS
All the gathered information of this survey has been shown in different charts and
graphs. Percentage analysis has also been used for this study.
INDUSTRIAL PROFILE
The Indian E-commerce industry has been on an upward growth trajectory and is
expected to surpass the US to become the second largest E-commerce market in the
world by 2034. India e-commerce sector will reach US$99 billion by 2024 from US$30
billion in 2019, expanding at a 27% CAGR, with grocery and fashion/apparel likely to
be the key drivers of incremental growth.
The Indian e-commerce sector is ranked 9th in cross-border growth in the world,
according to Payoneer report. Indian e-commerce is projected to increase from 4% of
the total food and grocery, apparel and consumer electronics retail trade in 2020 to 8%
by 2025.
As most Indians have started shopping online rather than stepping outside their houses,
the Indian e-commerce sector witnessed an increase. Also, as per the Mckinsey report,
~96% consumers have tried a new shopping behaviour; ~60% consumers are expected
to shift to online shopping in the festive season and continue shopping online beyond
the COVID-19 pandemic.
Huge investments from global players—such as Facebook, which is investing in
Reliance Jio—are being recorded in the e-commerce market. Google also reported its
first investment worth US$ 4.5 billion in Jio Platforms. This deal was followed by the
purchase of Future Group by Reliance Retail, expanding the presence of the Ambani
Group in the e-commerce space.
Much of the growth in the industry has been triggered by increasing internet and
smartphone penetration. As of August 2020, the number of internet connections in India
significantly increased to ~760 million, driven by the ‘Digital India’ programme. Out of
the total internet connections, ~61% connections were in urban areas, of which 97%
connections were wireless.
Smartphone shipments in India increased by~8% y-o-y to reach 50.0 million units in the
first-quarter of 2020, driven by positive shipments of all smartphone vendors in the
market. Samsung led the Indian smartphone market with 24% shipping share, followed
by Xiaomi at 23%.
The Government of India's policies and regulatory frameworks such as 100% Foreign
Direct Investment (FDI) in B2B E-commerce and 100% FDI under automatic route
under the marketplace model of B2C E-commerce are expected to further propel growth
in the sector. As per the new FDI policy, online entities through foreign investment
cannot offer the products which are sold by retailers in which they hold equity stake.
In October 2020, Minister of Commerce and Industry, Mr. Piyush Goyal invited start-
ups to register at public procurement portal, GeM, and offer goods and services to
government organisations and PSUs.
Through its Digital India campaign, the Government of India is aiming to create a
trillion-dollar online economy by 2025.
The Indian retail market is greatly divided up between the unorganised sector, which
includes about 13.8 million conventional family run neighbourhood stores and the
organised retail sector with a share less than 10%. The organised sector includes all
organized brick & mortar stores and online shopping sites. Despite the boom in B2C e-
commerce sector in India, majority of Indians continue to have more faith in the
neighbourhood brick & mortar stores for shopping as they prefer touching and feeling
the products and negotiating discounts over-the-counter, before buying. In India, a great
majority of B2C ecommerce retailers, draw customers to shop online by offering
bargains such as free delivery, discounts, buy-one-get-one-free and exchange offers.
However, many Indian shoppers known to be cost-conscious and conservative as a part
of their value system, are generally not attracted into making quick decisions based on
promotions and advertisements. Moreover, online shoppers, many-a-times, come across
problems concerning product delivery timelines and customer support services.
Customers’ perception of risk toward online web sites is aggravated due to the inferior
IT set-up used by several e-tailers, resulting in hacking of personal information.
Enter the novel coronavirus which causes a highly infectious disease Coronavirus
disease (COVID-19) that has infected more than 4 lakh people worldwide. Since it
spreads primarily through contact with an infected person (when they cough or sneeze)
or when a person touches a surface that has the virus on it, the best way to guard against
it is to stay at home. This has increased online shopping usage, globally. In India, it has
led to a rise in the number of FTUs or first-time-ecommerce-users in India, who had
been so far inhibited to shop online. The SARS outbreak that infected over 2700 people
in 2002, too is known to have dramatically changed people’s shopping habits as they
were afraid of shopping outdoors.
On 25th March, 2020, BigBasket - a key online grocery player in India had the
following message “We'll be back soon! We are currently experiencing unprecedented
demand. In light of this, we are restricting access to our website to existing customers
only. Please try again in a few hours.” So overwhelming was the response that it faced a
breakdown due to a steep increase in demand amid COVID-19. Grofers – a rival, had a
similar kind of message which said “Due to the sudden rush, we have stopped servicing
many locations, but we are working to increase capacity and will be resuming
operations shortly.” Amazon – one of the leading ecommerce players in the country,
and the world, has announced on its site that the customers are relying on them like
never before in their social distancing and self-quarantine efforts. Hence Amazon is
temporarily prioritizing its available fulfillment and logistics capacity to serve essentials
such as household staples, packaged food, health care, hygiene, personal safety and
other high priority products. It is temporarily going to stop taking orders for lower-
priority products. Globally too Amazon has seen a surge in orders and is raising
overtime pay for associates working in its warehouses, during the coronavirus outbreak.
This spike in B2C ecommerce in India is of course due to existing online shoppers
stocking up on essentials given the coronavirus outbreak and the lockdown imposed by
the Government (to check its spread). However it also consists of perhaps two more
segments –apart from the one that buys online, regularly. A segment that did not shop
online, given the inhibiting factors detailed in the beginning of this article and another
segment that up till now, was either ignorant about online shopping or did not have a
device or data plan. It would be interesting to check – how many shoppers from these
two segments switch to online shopping, even after the coronavirus crises is over.
CHAPTER 2
REVIEW OF LITERATURE
Indian Retail Market
The Indian retail market is segregated in unorganized and organized sectors, out of
which unorganized sector includes about 13.8 million conventional family-run
neighbourhood stores and the organised retail sector with a share of less than 10%
(IBEF, 2020; Halan, 2020). The organised sector further includes all organized brick
and mortar stores and online shopping sites (Sinha, 2019). Despite the boom in the B2C
e-commerce sector in India, the majority of Indian consumers continue to have faith in
the neighbourhood brick and mortar stores for shopping as they prefer to touch and feel
the products before buying and negotiating discounts over-the-counter. In India, a great
majority of B2C e-commerce retailers, draw consumers to shop online by offering
various exciting schemes such as discounts, free delivery, buy-one-get-one-free and
exchange offers (Srivastava & bagale, 2019; Joseph, 2019). However, many Indian
shoppers known to be cost-conscious and conservative as a part of their value system,
are generally not attracted to making quick decisions based on promotions and
advertisements. Moreover, online shoppers, many-a-times, come across problems
concerning product delivery timelines and customer support services (Khare, 2016;
Arpana, 2020). Customers’ perception of risk toward online web sites is aggravated due
to the inferior IT set-up used by several e-tailers, resulting in the hacking of personal
information (Retail Economic Times of India, 2020; Staff, 2020).
Consumers have expressed their concern towards products that are made in china (Uyar,
2018). The emergence of this disease has created a panic mental situation among
regular users of the few products now, they are becoming more conscious of buying
products made abroad. This has given a boom to locally manufactured products and
supports the MAKE in India's initiative of the government. The majority of the
consumers said that they will no longer prefer the products made in china.
Consumers are very much aware of the details of where the product has been made, and
what quality has been delivered to them at home. Surevy has been done among seventy
six males and eighty three females regarding their change in behaviour towards
products manufactured outside India. From Figure 1 one can infer that majority of the
male respondents do care about the place of product manufactured and hesitate to buy
products manufactured abroad and fifty four percent of females supported that after
COVID-19 they are concerned about a product manufactured place and will not prefer
made in china products as of now.
A shift in the Consumers’ Buying behaviour
Empty shelves during COVID 19 have generated severe problems for the consumers’
(Lufkin, 2020). COVID 19 has forced consumers to change the way they preferred to
shop. There is an increased shift in consumer buying behaviour from traditional
shopping to online shopping (Reddy, 2020). Apart from the augmented number of
customers indulging into online shopping shift has been observed in the choice of
products being ordered by customers through these online tools. The majority of the
customers have started positively ordering more personal care and medical kits rather
than ordering fashion products. National Retail Federation (NRF) has surveyed on
consumer’s online shopping behaviour in this epidemic situation and has briefed certain
consumer buying behavioural changes as follows:
1. As per the survey results, 9 out of 10 customers have changed their shopping
practices.
2. Results are supportive that more than 50% of customers have changed their
traditional shopping habits by ordering products online.
3. About 6 out of 10 customers stated that they avoid going to store due to the fear of
being infected and ordering necessary goods from online marketing tools.
All these behavioural changes are not permanent but few are going to last permanently.
As the society will recover from this survival mode, this digital- online shopping
adoption is likely to become permanent. So, in the end, this pandemic situation has been
classified into two aspects one is a shift in customer behaviour that avoids public
crowded gatherings and second is more inclination towards digital adoption
(Shashidhar, 2020).
Marketing research company Nielsen has further explored that one of the UK-based
fashion retailer’s online search traffic drop by approximately 40% after severe new
procedures have been announced in mid-March to fight with COVID-19 virus results
Research done by Nielsen company claims that customer buying behaviour has been
changed from fashion-oriented shopping to daily need-based shopping things as
explained follows:
Researches by Gourinchas & Parker (2002); Kaplan & Violante (2014); Kaplan et al.,
(2020) proposed theoretical models of household consumption responses. Initially in
March, there was little direct effect of COVID-19 in the United States, and India but
substantial awareness of prospective damage in the near future. Research by agencies
supports that significant stockpiling and spending reactions among customer, which is
consistent with expectations playing a large role in house hold consumption and
decisions medical marks as shown in
CHAPTER 3 THEORITICAL FRAME WORK
Today, as customers become more comfortable with it, online shopping is another
area where customer experience can make or break a store and it offers room for
disruptors in the market – so much so that even physical stores that have been around
for decades should start worrying if their online customer experience isn’t up to par.
In the months since COVID-19 appeared on the scene, all kinds of lockdowns have
been influencing our lives. These lockdowns, and the desire to minimize close
interpersonal contact with strangers, have led to an enormous uptick in online grocery
shopping.
I’ve personally experienced how grocery shopping has changed . Before COVID-19,
we already used to order our weekly groceries online and pick them up at the grocery
store. This meant that we didn’t have to maneuver an unwieldy, fully packed cart
through an even more packed grocery store on a Saturday. Instead, we would just stop
by the store to find our groceries packed and ready to be collected. I would have
opted to have them delivered back then as well, but unfortunately our favourite
grocery store doesn’t deliver to our neighbourhood.
I first noticed the impact of the increased use of this kind of shopping when it started
to get difficult to find a time slot for pick up. Before COVID-19, the slots were
plentiful and you could always get the one you wanted, very often just a week in
advance. During COVID-19, it’s becoming quite a feat to find any open slot, not to
mention one you want. These days, you have to check for slots every day.
Understandably, it is very difficult to increase the entire supply chain behind this way
of delivering groceries, so I won’t complain about the limited number of slots. What I
will complain about is the fact that I have not been able to identify the (algo) rhythm
that frees up time slots that were previously “greyed out” and impossible to select.
Nor have I encountered a store (I frequent multiple stores online) that offers any form
of messaging for customers regarding available slots. A feature like that would create
a huge uptick in the customer experience of online grocery ordering.
The second noticeable impact of the increased use on this kind of shopping reveals
the difference in capability between different companies when it comes to enhancing
their app/web shops. Some companies have very intuitive (even fuzzy) search
functionalities and their recommendations are really useful. Others don’t even display
the correct product – even when it’s spelled correctly. You have to search for it from
some different angle through the products and categories supplied. Not much has
changed during these past months for the latter companies. Today, as customers
become more comfortable with online shopping, this is another area where customer
experience can make or break a store and it offers room for disruptors in the market –
so much so that even physical stores that have been around for decades should start
worrying if their online customer experience isn’t up to par.
Both may, on their own, seem like fairly small issues, but they can make or break the
digital customer experience and even result in the shuttering of the physical store. As
I stated in a previous blog, in the experiences where you want to excel as a company,
you might want to switch to microservices for your search and ecommerce solutions.
Think about:
The choice between the different search vendors, either fully based on Elastic or
for example injecting CDP (customer data platform) data or using AI to deliver
better search results for your customers.
What flexibility the current trends in (micro) service-based ecommerce solutions
offer in order to excel and stand out from the competition.
CHAPTER 4
Increased online
Shopped online for shopping
the first time 50%
24%
Decreased/stopped online
shopping
8%
INTERPRETATION
from the above data we can understand that more than 50% people had opt that they had
increased online shopping,8% decreased/stopped online shopping,24% shopped online
for the first time,14%had no effect,4% have some other effect.
TABLE 2 Is it safe to order online during covid 19?
SL NO Particulars Respondent percentage
1 Yes 32 64%
2 No 12 24%
3 Maybe 6 12%
TOTAL 50 100%
maybe
12%
no
24%
yes
64%
INTERPRETATION
From the above data 64% suggest that online shopping on pandemic is safe, 12%
not sure and 24% suggest that not safe on this pandemic
TABLE 3 Which product type have you bought most online since the start of the
outbreak?
SL NO Particulars Respondent percentage
1 Clothing 18 60%
2 Other items from supermarket 1 0%
3 Food 5 10%
4 Gift/luxury items 6 3%
5 Household items 4 7%
6 Personal care 7 10%
7 Electronics 7 7%
8 Other 2 3%
TOTAL 30 100%
other
electronics
personal care
ghousehold items
product bought online
gift/luxury items most during pandemic
food
clothing
0 10 20 30 40 50 60 70
INTERPRETATION
Since the start of the outbreak, more respondents had bought personal care
and household items than any other type of product. Food and clothes
followed close behind in popularity, with slightly less than 50% of
respondents saying they had made these kinds of purchases during the
outbreak.
TABLE 4 At this point of outbreak, how do you shop online most often?
websites on pc
10%
apps on mobile
device
58%
INTERPRETATION
The majority of respondents said they shopped on websites more often than
mobile apps – a notable finding in light of challenges that can distract visitors
when visiting online shopping websites. Without the brand-focused environment
of a native mobile app, shoppers are more susceptible to disruptions such as
unauthorized ad injections.
TOTAL 50 100%
0 5 10 15 20 25 30 35 40 45
INTERPRETATION
Type of delivery
pick up point from a logistics
provider
4%
delivery to my
work place home delivery
22% 38%
INTERPRETATION
From the above data 18% respondents choose to drop off online products at their
doorsteps,38% choose home delivery,4% pickup point from a logistics provider.22%
choose Delivery to my workplaceand 18% Pick up point from retailer.
TABLE 7 Online shopping satisfy as much as physical shopping
INTERPRETATION
According to this chart, 29% are agreed that buying online products is as much
satisfying as buying
physically in markets and 50% people said it is not such a case whereas rest of them are
unsure
about it.
utilisation of internet
60
50
40
30
20
10
0
home work school library other
INTERPRETATION
From the above data 58% respondents utilize internet from home,22%at work,6% from
school,2%from library and 12% from some other place
strongly disagree
disagree
delivery of a good service
agree
strongly agree
0 5 10 15 20 25 30 35 40 45
INTERPRETATION
From the above data we can clearly interpret that 42% strongly agree that it takes a long
time for delivery of goods or services, 18% agreed, 34% disagreed and 6% respondents
strongly disagree
I agree
30%
INTERPRETATION
In this graph, 53% respondents said they will recommend online shopping to their
family members, friends, and other people whereas 31% respondents said they will
not while 15% are uncertain about it.
50
40
shopping after covid
30
20
10
0
yes no maybe
INTERPRETATION
From the above graph, online shopping that we have seen since the start of the
COVID-19 crisis, we wanted to find out whether this trend would continue
after the end of the crisis. Encouragingly, we found that 54% said they plan to
shop online after the outbreak at least as much as they do today, 32% are not
sure about their decision and 14% said they won’t be shopping online
Table 12 Online shopping is comfortable than physical shopping during Corona virus.
SL NO Particulars Respondent percentage
1 agree 15 30%
2 Strongly agree 19 38%
3 disagree 11 22%
4 Strongly disagree 5 10%
TOTAL 50 100%
strongly disagree
disagree
agree
0 5 10 15 20 25 30 35 40
%
INTERPRETATION
From the above data it is clear that 30% agreed with the statement that online shopping
is comfortable than physical shopping, 38% strongly agreed with the statement 22%
disagreed and 10% strongly disagreed with the statement.
design
12%
Cred-
ibility
Customer friendly 2%
22%
INTERPRETATION
From the above data 22% respondent says that online shopping website is necessary
with customer friendliness ,40% for privacy and secure,12% for design,2 % for
credibility and 24% for social networking integration.
TABLE 14 how confident are you that your personal information is kept confidential
when buying products online?
SL NO Particulars Respondent percentage
1 Extremely 1 2%
confident
2 Quiet confident 10 20%
3 Moderately 22 44%
confident
4 Slightly confident 9 18%
5 Not at all 8 16%
confident
TOTAL 50 100%
Slightly confident
18%
Moderately confident
44%
INTERPRETATION
From the above data 44% respondents are moderately confident about ther personal data
in online shopping website,16%not at all confident,2% extremely confident,20% quiet
confident,18% slightly confident.
TABLE 15 on which website are you most comfortable buying from an individual you
don’t know?
other
snapdeal
shopclues
myntra
most comfortable website
flipkart
amazon
0 5 10 15 20 25 30 35 40
%
INTERPRETATION
From the above data 36% respondents are comfortable with amazon website, 30% with
flipkart, 14% with myntra,2% with shopclues,4% with snapdeal and 14% with some
other websites.
CHAPTER 5
BIBLIOGRAPHY
[Link]
[Link]
19_IMPACT_ON_ONLINE_SHOPPING
[Link]
gclid=Cj0KCQiA-
OeBBhDiARIsADyBcE708__Cd_gYpi2eAHtx6UBVcjgDXLCEyAMEwAtPHJ
CfNK6YqJmE4rcaAja9EALw_wcB
[Link]
[Link]
348928897_Impact_of_COVID_19_on_E-Commerce
APPENDIX
QUESSTIONNARE
Name:
Age:
Residential area
urban
rural
Profession
Jobseeker
Student
Employee
Self-employed
Other
Yes
No
Maybe
3. Which product type have you bought online since the start of the outbreak?
Clothing
Other items from supermarket
Food
Gift/luxury items
Household items
Personal care
Electronics
Other
Home delivery
Drop off at doorsteps
Pick up point from retailer
Delivery to my workplace
Pick up point from a logistics provider
Agree
Strongly agree
Disagree o
Strongly disagree
8. Where do you mainly utilize the internet?
Home
Work
School
Library
Other
Yes
No
Maybe
Agree
Strongly agree
Disagree
Strongly disagree
Design
Social networking integration
Credibility
Customer friendly
Privacy and secure checkout
14 how confident are you that your personal information is kept confidential when
buying products online?
Extremely confident
Quiet confident
Moderately confident
Slightly confident
Not at all confident
15 on which website are you most comfortable buying from an individual you don’t
know?
Amazon
Flipkart
Myntra
ShopClues
Snapdeal
Other