During the COVID-19 pandemic, when social distancing and store closures became necessary, e-commerce once again proved its importance. Consumers quickly shifted to online shopping to avoid physical contact. However, while there was a surge in online shopping, the increase in unemployment due to business closures and the tendency of those working from home to reduce non-essential spending led to a general decline in overall e-commerce volume. The impact of COVID-19 on the growth rates of online sales will largely depend on the course of the pandemic and the duration of social distancing measures.
This blog will highlight some of the changes in e-commerce that have emerged during this period, which we hope will be short-term. But first, let’s take a look at Turkey’s e-commerce data for 2019.
What were Turkey’s e-commerce statistics in 2019?
The increase in e-commerce continued
E-commerce continued to grow. According to the “Digital Turkey 2019 E-Commerce Report,” the number of people shopping online increased by 7.6 million from the previous year, reaching 39.3 million, with a total expenditure of $11.48 billion.
Most spending was on vacation/travel
The highest spending was on travel/vacation, totaling $5.198 billion. Spending on electronic devices, home appliances, and mobile phones reached $2.061 billion, while $1.3 billion was spent on clothing. These were followed by toys and hobby products at $1.125 billion, furniture and accessories at $1.056 billion, food and beverage at $412 million, video games at $268 million, and digital music at $60 million.
New Shopping Habits Will Change the Ranking
This year’s e-commerce purchases are likely to differ from 2019. We expect to see a significant increase in the consumption of food and beverage products in online shopping. Meanwhile, a major decline in travel/vacation purchases is likely due to international and local travel restrictions and uncertainty around social distancing. The shift in consumer priorities due to COVID-19 will continue to influence the new e-commerce trends. All positive and negative developments will bring changes.
Below are some e-commerce trends we have observed during the COVID-19 period:
1. Surge in Online Shopping
Social distancing requirements and store closures directed shopping toward e-commerce. Sales increased in sectors such as food and cleaning products. In particular, high demand for items like hand sanitizer, disinfectants, and masks led to product shortages.
2. Concerns Over E-Commerce Distribution and Supply Chains
The sudden surge in demand raised initial concerns that supply would not meet demand. Early disruptions in the supply chain, which began during the initial outbreak in China, affected inventory and delivery times. In Turkey, supply and delivery times experienced a brief adjustment period but have since stabilized, and products are reaching customers with minor delays.
3. Pausing E-Commerce Orders
As the time spent at home increased, sales and distribution of non-essential products slowed, complicating the situation for some brands. For example, some companies have paused their online sales. In Turkey, brands like LC Waikiki, Mavi Jeans, and Twigy are among those that have temporarily halted sales.
4. Prioritizing Essential Products
This period required adjustments in supply processes to prioritize consumer needs. For example, Amazon, the world’s largest e-commerce site, limited its warehouse space to essential items and imposed restrictions on FBA (Fulfillment by Amazon). Amazon confirmed on March 23 that it would prioritize the shipping of medical supplies and other essential products, including baby products, health and home items, beauty and personal care, groceries, and pet supplies.
5. Diverse Delivery Methods and Product Categories
As consumer lifestyles and shopping habits rapidly changed, businesses had to adapt quickly to remain competitive. Some e-commerce sellers expanded their product offerings to include hygiene products like soap, medical supplies, and personal care items to meet consumer demand. Others adopted new delivery methods to reduce logistical strain and avoid crowding. For instance, Migros introduced a “delivery from the nearest store” option in its virtual market app, reducing product contact, the number of people in stores, and delivery mobility.
6. Rise of Online Grocery Shopping
One of the most prominent e-commerce trends brought about by COVID-19 has been the significant increase in the share of food in online shopping. Social distancing has led to a rapid rise in online grocery shopping, with online supermarkets attracting new customers beyond the pre-COVID demographics.
So, what should brands in the retail sector, where online shopping continues albeit at a slower pace, do? See this article for tips: “9 Tips to Adapt Your E-Commerce Strategy to a Changing World.”
We can help you transition to a seamless e-commerce infrastructure that allows you to deliver an excellent customer experience as quickly as possible. Contact us today.
