Despite the majority of the population in lockdown at homes, there seems to be no growing interest on the part of consumers. Majority of companies even reported that sales from physical stores had not shifted online during the outbreak as expected

Fremont, CA: The outbreak of the COVID-19 pandemic has made an enormous difference across all sectors, and the e-commerce industry is no exception. Since the outbreak, the American e-commerce industry's growth has stalled, traffic has declined, and pushed many businesses to lower quarterly revenues. The virus began affecting the U.S. since mid-February, and since then, the majority of e-commerce retailers have seen a downward trend in sales. This is a concerning development for retailers that are relying on web sales for a lifeline as mandatory closures of nonessential businesses shutter vast swaths of the industry. Many of these companies, including department stores and apparel chains, have reminded shoppers that online operations are open for business.

Despite the majority of the population in lockdown at homes, there seems to be no growing interest on the part of consumers. Majority of companies even reported that sales from physical stores had not shifted online during the outbreak as expected. “It seems intuitive that if people were at home, that would lead to more e-commerce sales,” said Scott Silverman, founder of CommerceNext. “The fact that we’re not seeing sales shift from stores to online is an indication of just general consumer uncertainty and being preoccupied with watching the news, taking care of their families and all the other things that become priorities during crisis situations.”

In addition, surveys have revealed that the outbreak has also impacted supply chains, with executives reporting disruptions of varying degrees from the pandemic. Retailers like Victoria’s Secret, T.J. Maxx and Marshalls have opted to shut down online operations in addition to stores. Some of the most affected categories of retailers include apparel, personal care, consumer electronics and food and beverage. “There are things that nobody would ever anticipate, like e-commerce shutting down,” Silverman said. “You would think that this would be the one part of their business that they could keep up in running.”

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