Omicron; the new, more infectious form of covid virus which is known to emerge from South Africa is spreading across the world as we speak. The first case of its infection was reported to WHO on 24th November in wake of which several countries have been quick to impose travel bans to South Africa and neighboring nations where cases have been identified. Few countries such as Israel have gone one step further and banned the entry of foreigners, except nationals. Japan has declared the expansion of its existing travel ban.
Expected Changes In Online Shopping Platforms During Omicron Pandemic Situation
According to researchers, the Omicron variant is by far the most infectious form of covid virus and current covid vaccines might not be as effective against it. Border closing and travel restrictions may help slow down the spread but thinking it will stop what is inevitable is surely a misplaced belief. Amidst all the uncertainty and rushed decisions, the eCommerce industry which was slowly regaining its ground as with the rest of the global economy again readies itself to expect unsure outcomes.
In light of Omicron, the possibility of the reimposition of restrictions on eCommerce websites remains looming overhead. Every time businesses tried to gain traction in their online sales during the past year or so, another hurdle in form of a new covid virus variant had managed to slow down the process. As some countries are already banning international travel, it can also impact the eCommerce businesses that operate globally.
The supply chain crisis caused by previous flares of covid infections is still not resolved completely. Panic buying among people to stock up on goods in fear of possible lockdown has also led to a significant break in the supply chain in the past. Additionally, labor shortage and delay in material receipts have led to further supply chain disruptions which are yet to be fixed.
In this situation, the emergence of Omicron is received with heavy disappointment towards hopes of normalcy to the pre-covid era and fear of the unknown among the population at large. Governing bodies of most nations with their preparations although feel more confident in face of the new challenge, it remains to be seen how the onset of Omicron affects the already fragile world economy. As the eCommerce industry contributes to a major part of it, any crisis it goes through is going to have a direct impact on the economic curve.
This holiday season observed tremendous volumes of online sales. Several eCommerce companies opted to promote their holiday deals early this year. In face of a global supply chain crisis, this technique worked great for businesses as it provided enough time to ensure inventory management and timely delivery of goods.
Retailers who waited until late to post deals or people who wait until the last moment to order online may have to suffer product unavailability issues. Irrespective of uncertainty with respect to government restrictions and Omicron impact, Black Friday followed by Cyber Monday deals managed to gain impressive sales for eCommerce sites all together surpassing the volume reported last year.
Enhanced shopping experiences, product availability due to better inventory management, and the ability to receive goods directly delivered to home have led to people preferring online shopping over in-store shopping in these times. Although the supply chain crisis has affected all online and offline stores, online stores have still managed to drive more sales as compared to brick-and-mortar shops.
With the growing spread of Omicron and possible travel restrictions, manpower supply and movement of goods are bound to suffer depending upon the severity and extent of the spread of infection. The imposition of partial or complete restrictions on e-commerce sales and shipping across borders is expected to have a negative impact on the eCommerce industry.
Although Omicron’s arrival had not seemingly dampened the holiday shopping spirits of people yet, government decisions and awareness of the new virus can potentially have a major impact on public comfort and eCommerce sales. Ecommerce sites selling essential items are more likely to be allowed permission to operate provided strict safety precautions are observed. Meanwhile, sales of sanitizers, masks, and other covid prevention and treatment-related items are expected to rise back up.
