The Coronavirus Effect on the E-Commerce Industry

A disruption is unfolding in the eCommerce market. Though the disruption will be short-term, the impact will be huge on the industry.

The disruption is the Coronavirus pandemic.

First identified in the city of Wuhan in China, the virus swept over the world quickly, becoming the first pandemic in the technological era. The swiftness in transmission and potency in killing people makes the Coronavirus deadly. It has brought the world to a grinding halt.

To stop the transmission of the virus, countries across the world are implementing aggressive lockdowns. Movement of people is being restricted, and economies are expecting recessions in the near future.

At the beginning of the pandemic, the eCommerce industry was thought to be a saviour. People bought essentials online from the safety of their homes with eCommerce. But, soon the pandemic struck.

The Coronavirus disrupted the eCommerce industry by disrupting the global supply chain. China, which is the manufacturer of the world, had to temporarily shut its shops down. Companies are scrambling to maintain their production and supply to the end customer.

UAE and The eCommerce Industry

In the Middle East and North Africa (MENA) region, UAE is the fast-growing eCommerce market, and Dubai city leads the list.

World-class logistical infrastructure, high digital penetration, presence of digital natives, trust in digital payments, and government support has led to a dramatic growth of the eCommerce industry in Dubai.

The corona pandemic is threatening to undo the progress made by the e-commerce industry. The government had imposed a two-week lockdown to fight the coronavirus. Only supermarkets, food, and drug delivery services are open. The rest of the economy is closed until the end of the lockdown period. This is hurting the eCommerce industry.

Hope Amidst Chaos

While goods production in China came to a halt, companies are finding ways to keep up their production. Companies like Debrief Me have shifted their production units and stock-keeping units (SKUs) back to the USA. The company has also become flexible in procuring raw materials from countries or vendors that are still functioning.

You can also follow the footsteps of Debrief Me and shift your production and stock-keeping units to other countries. While last-mile delivery seems impossible during the lockdown, you will be able to ship goods after the lockdown.

Overall, the disruption by the coronavirus will be a small hiccup in the growth of e-Commerce in Dubai.

How Can ICS-Dubai Help You?

While shifting your SKUs and production units, you need to negotiate with foreign parties and provide training manuals in a foreign language.

ICS-Dubai provides the best interpretation and translation services in Dubai. Our services are available in all the major global languages. We are happy to help you in these tough times.