The enforcement of social distancing, lockdowns and other measures in response to the COVID-19 pandemic has resulted in spikes in business-to-consumers (B2C) sales and business-to-business (B2B) e-commerce, says a new report by the World Trade Organisation (WTO).
Demand has also increased for internet and mobile data services. The network capacity and spectrum to accommodate the shift to online activities has urgently had to be adapted by both operators and governments. Demand has fallen, however, for certain services with a large online component, such as tourism services.
E-commerce for goods and services trade has been adversely impacted by the same factors that have caused disruption in supply and demand overall. Such disruptions have resulted in delivery delays or outright cancellation of orders. Several other e-commerce-related challenges have arisen or been further amplified during this pandemic. These include price gouging, product safety concerns, deceptive practices, cyber security concerns, the need for increased bandwidth, and development-related concerns.
The pandemic has highlighted the glaring need to bridge the digital divide, both within and across countries, given the central role the digital economy has played during the crisis. Many traditional obstacles have been accentuated and have continued to hamper greater participation in e-commerce activities by small producers, sellers and consumers in developing countries, particularly in least-developed countries.
The global nature of COVID-19 and its impact on e-commerce may encourage strengthened international cooperation and the further development of policies for online purchases and supply. The pandemic has made it clear that e-commerce can be an important solution for consumers and can also support small businesses and, by making economies more competitive, be an economic driver for both domestic growth and international trade.