E-commerce grows amid coronavirus

The Swiss people once again made a lot of online purchases in the past year. A current study forecasts a tripling in digital commerce growth for the year 2020 as a direct consequence of the pandemic.

In 2019, the Swiss spent around CHF 10 billion on online shopping, which corresponds to an 8 percent increase in volume. This growth trend will continue to increase considerably in the coming year due to the coronavirus crisis. At least that’s what the current figures from the e-commerce study conducted by UAS Northwestern Switzerland and Datatrans suggest.

Growth rate of between 22 and 30 percent?

Thirty-five online and multi-channel providers in Switzerland which are particularly dominant in the market were surveyed for the “E-Commerce Report Switzerland”. This means the report is not representative but still a good indicator for current circumstances nonetheless.

The results of the survey allow only one conclusion: online shops count amongst the winners of the country’s eight-week lockdown. On the basis of the figures available until June, we can expect growth in digital commerce for 2020 of between 22 and 30 percent, i.e. a rate three times higher than the previous year.

The companies surveyed for the study also expect further growth in the coming years. None of the panel participants think there will be stagnation or even a decline. Two thirds of those surveyed believe that e-commerce revenue in their sector will grow by 50 percent or more by 2025.

Foreign platforms grow more slowly

Over the past five years, foreign providers expanded dramatically and grew twice as fast as Swiss shops. The report shows that this picture has changed for the first time. But it’s currently unclear whether 2019 was truly a trend reversal in this regard.

Merging of channels needed

Access to customers will be a key factor to success in the retail world of the “new normal”. This view is held by 74 percent of participants surveyed. Those who want to survive in the interconnected world of products and services have to position themselves where their offerings appear the most useful to customers. The authors of the study stress that separating the analogue and digital worlds is no longer sensible.

It’s time to get rid of the “E”. E-commerce becomes commerce. Or in other words: commerce stays commerce whatever the channel.