As the COVID-19 pandemic continues to rage across the world, many shoppers are staying online. It makes sense in many ways; online shopping, or eCommerce, was already rising steadily in the last few years. The pandemic forcing people to forego physical shopping, for the most part, has seen a steady rise in the number of shoppers who are buying online. However, despite the rise of eCommerce showing no signs of slowing down across the wider market, Amazon has posted a surprising dip in Q1 results.
The eCommerce giant posted its Q1 results for 2022, and it showed around a 3% dip in the number of sales made previously. This comes down to several factors, but one main reason given was the return of physical shopping. With many nations returning to a more traditional pre-pandemic lifestyle, physical store shopping is on the rise.
However, overall company net sales for Amazon increased by 7% across the quarter. Overall, though, a net loss of around $3.8 billion was made for the time period, per an official press release.
Another reason for the drop-off in Amazon sales, though, could also come down to rising competition. For many entrepreneurs, the COVID-19 pandemic introduced the need to find new employment opportunities. As a result, many businesses shut their doors, never to open again, while others came back from the pandemic hobbled and weakened. Others found their previous industries no longer in need of their expertise.
With this in mind, it should come as no surprise that many are moving into cost-effective eCommerce platforms. For example, dropshipping was already a highly successful platform for delivery for businesses pre-pandemic. With the rising cost of supply and storage, many companies are choosing to go down the route of using dropshipping.
Ecommerce Competitors Continuing Rising In Post-Pandemic Conditions
The ease of learning how to start dropshipping has become a specialist subject many entrepreneurs are now learning. Platforms such as Store Coach have become a go-to hub for those looking to get in on the ground floor of this industry. The removal of the need for excess storage, with every product that is needed purchased on-demand and shipped to the customer, has made it easier for entrepreneurs to get involved.
Many eCommerce businesses fail due to a mixture of marketing mistakes and excess investment in storage and stock. With dropshipping, companies can simply sell what is bought from their store by an actual customer. This removes the need for sizable storage and has contributed to the significant rise in post-pandemic new eCommerce business options.
While Amazon is unlikely to find itself facing off against any major business competitors, at least in the West, small business alternatives popping up en masse could pose a long-term challenge. As more entrepreneurs look to move into the use of eCommerce systems like dropshipping, the post-pandemic world could be increasingly more diverse in terms of purchase options than many would have expected.
With physical sales up as shoppers return to the comfort of buying locally, the rise of more eCommerce options can only be a good thing for consumers looking for variety.
Dropshipping
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