The COVID-19 pandemic has had a significant impact on every aspect of people’s lives, including the way they shop. According to multiple international studies, online retail sales are expected to reach $6.5 trillion by 2023. Currently, the e-commerce sector is increasing its share in the total commercial activity and is developing very dynamically.

Consumers are moving their spending online out of necessity and a desire to avoid additional hassles. Some of these consumers, who rarely or never bought online, are starting to get to know and use the various Internet platforms. What’s more, the majority of these consumers are expected to continue using online commerce. As a result, commercial companies are increasingly moving towards a direct-to-consumer business model, and many e-commerce businesses are experiencing significant growth.

Companies around the world have accelerated and adapted their operations and business models to cope with change on many fronts. In these extraordinary times and with the rise of the Covid-19 pandemic, digital revenues from online commerce reached 41% growth within the EU.

In the period of the pandemic, consumer demand and supply has undergone a change.

Importance of mobile phone devices

The increase in the number of users turning to digital services during the pandemic has stimulated both providers of these services and telecommunications operators to improve network capacity, as well as to compile new and cheaper or free data packages and services.

Even before the crisis, the mobile phone became increasingly dominant, as it combines the possibility of quick access to information and an easy model of payment for multiple services. In the first quarter of 2020, mobile e-commerce traffic grew by 25% across all industries. In fact, mobile accounted for 56% of total order share and 71% of total traffic for the first quarter of 2020. Social media accounted for 8% of total traffic share with consumers going to retail sites directly from their favorite social networks.

Who Shops Online?

According to Eurostat, more than half of the EU population (60%) used online ordering platforms in 2019, and in a pandemic situation this percentage reaches 70% of the population. Online shoppers in the EU are people under the age of 65, well-educated and employed. A smaller proportion of shoppers are people with less purchasing power, such as retirees and the unemployed. The same applies to people with low education who cannot handle online platforms and lack the confidence to shop and especially to pay online.

What is the European Union doing?

Building on this unprecedented growth in online sales, the EU is supporting the development of the Digital Single Market, including e-commerce and digital payments. The EU has adopted new e-commerce legislation, for example to facilitate cross-border e-commerce. Legislation to improve consumer protection and personal data protection (GDPR) was also passed. In addition, safety guidelines for products sold online as well as manuals for improving cyber security have been prepared. It is intended for a digital program (2021-2027) to support investments in artificial intelligence, e-skills and the digitalization of industry within the EU.

A specific and very important component of online shopping is the payment of goods and services, which is why stricter rules on online payments, cyber security and reducing the possibility of fraud have been adopted in the EU, as well as better assistance to victims. In the pandemic environment, many new rules and laws were also adopted to facilitate logistics activities in member states, governments chose different approaches to stimulate business and the use of online platforms.

VP solutions can prepare all necessary documents and texts for you. In addition, our team offers highly qualified staff who, depending on your site and the offered goods, can prepare general rules, conditions for the protection of personal data, use of cookies, description of connections with social networks and much more. Let’s work together!

Author: V.Zh.

*The article is subject to copyright. Its distribution without the knowledge and consent of the author is a crime