The Impact of the COVID-19 Pandemic on B2C E-Business and the Challenges to Bonjour Holdings Limited

Introduction

Before the COVID-19 pandemic, e-commerce was frequently associated with young generations, as they are seen as digital natives. However, according to OECD (2020), the COVID-19 pandemic has increased the reach of e-commerce because social isolation barriers have encouraged new consumer groups, notably the elderly, to adopt online buying. The group continued, “In response to a surge in online shopping brought on by contact restrictions, the types of products that are available for purchase on e-commerce websites have become more diverse, going from a few types of products (such as luxury goods) in the past to various types of products (such as personal protection items, household goods, and food and beverages) during the pandemic.” Due to many brick-and-mortar merchants switched from offline to online sales by implementing in-store pickup and home delivery in order to survive in the fast shifting market brought on by the Coronavirus pandemic, it is possible to see the expansion of e-commerce (Ecommerce News, 2021). England experienced one of the most impressive increases, with online retail's proportion of total retail sales soaring from 17.3 percent in March 2018 to 31.3 percent in June 2020. (OECD, 2020). During the global lockdown in the spring of 2020, it appears that the majority of e-commerce businesses experienced a boost in online sales. The poll found that 90% of businesses experienced an increase in online sales, with 50% of respondents reporting increases of more than 100%. However, 6% of respondents claim that their ecommerce revenue fell off during the lockdown. Many customers resumed their in-store purchasing at brick-and-mortar stores after the lockdown was lifted. Nevertheless, 86 percent of respondents reported a rise in internet revenue, while only 4 percent reported a reduction (OECD, 2020). The development of e-commerce is also influenced by shifting consumption patterns and purchasing behaviors. During the epidemic, people stay at home longer and prefer to complete all tasks at home. As a result, people began to purchase products online that they had never or hardly ever done before the pandemic leading to an increased demand for certain products including groceries, snacks, and alcoholic drinks (Donthu & Gustafsson, 2020).

Since many consumers have adapted to and developed online shopping habits during the epidemic, it is anticipated that the boom of e-commerce would continue after the pandemic (Kim, 2020). One of the potential impediments for many consumers to adopt online buying, according to the study, is the learning curve. However, many consumers inadvertently incurred this cost during the epidemic and do not need to spend additional time learning how to purchase online after the pandemic. Only a small percentage of respondents (4%) reported that their online shopping sales declined once the lockdown ended, while the bulk of respondents (86%) said that their online sales continued to rise (Ecommerce News, 2021). This is consistent with the assertion made by the OECD (2020), who stated that customers who have engaged with e-commerce might stick to their newly acquired routines. Customers and businesses that have switched from physical to online sales modes of operation may experience long-lasting effects from the coronavirus on e-commerce. Since many businesses spent money acquiring the infrastructure and expertise required for online sales during the pandemic, increased e-commerce activity and the money spent on online sales may encourage those businesses to make the most of the infrastructure and expertise they have acquired in the long run (OECD, 2020).