The industry that developed during Covid, and why you should consider starting a business there

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It is safe to say that Covid-19 has had a huge impact on the world.

The impact, in most cases, has been negative. Lockdowns, sick people, mandatory vaccinations, forced government spending and more.

But is there a benefit to all this mess?

One industry that has grown tremendously is the e-commerce space. Now you might be wondering how could this industry grow?

Let’s take a closer look.

First of all, when governments impose closings, people always have to buy things. Even though we were locked up, stores such as supermarkets remained open. But what about other types of stores?

This is where it gets really interesting

You see, Covid-19 and the many lockdowns we’ve had to endure have changed consumer behavior for good. The reason is that we always had the desire to buy things but we had to adapt our buying style.

Rather than going to the store to buy something, we were now forced to pivot by selecting a product online, adding our credit card details, and then having that product delivered to our doorstep.

It was a big change for people, but something really interesting happened. People started to like the convenience of ordering a product online and having it delivered quickly.

Related: The Pandemic Economy Has Made Ecommerce More Essential Than Ever

Once people discovered this convenience, consumer behavior changed forever.

According to a consumer opinion survey According to PwC, 75 percent of the more than 8,600 consumers surveyed have tried a new shopping behavior in the past 12 months (online) and 73 percent of consumers intend to continue this trend.

Another interesting insight is that 36% of consumers have tried different brands, stores or websites to get their products.

Amazon, the biggest e-commerce brand of all, has seen incredible growth, once again confirming that this new consumer behavior is here to stay.

According to e-marketer.com, Amazon accounts for more than $ 2 out of $ 5 spent online in the United States in 2021. Amazon also has a huge 41.4% market share compared to its closest competitor, Walmart, which is 7.2%.

So we all know that the e-commerce industry has grown, but why should we consider it?

The fallout from the Covid-19 pandemic has seen entire industries almost wiped out. The travel industry, the live events industry and a host of other sectors have experienced a significant downturn.

Now, as human beings, we all need certainty, and workers in these affected industries have had to re-evaluate their job security.

People are looking to protect their careers and income capabilities from a pandemic. As a result, the hockey stick (suddenly and extremely fast) The growth of e-commerce is quickly catching the attention of workers in the industry as a new business opportunity.

Related: Winning The Battle Of Ecommerce In The Post-Covid-19 Era

Welcome to the world of Amazon FBA

Amazon FBA (Fulfilled by Amazon) is an e-commerce business model that allows people to micro-brand or white-label their own products, ship their goods to one of Amazon’s fulfillment centers, and once an item is sold, Amazon takes care of the pickup. , packaging and shipping your product to the customer’s front door.

Now this is a big deal because Amazon FBA sellers are making a lot of money. According to Amazon SME report, more than 65,000 Americans made more than $ 100,000 in sales, up 10% year-over-year.

On top of that, 27,000 Americans have made more than $ 500,000 in sales on their platform, and nearly 4,000 Americans have passed the $ 1,000,000 mark in sales.

These are moms and dads creating a brand and partnering with Amazon.

There are other alternatives to achieve this same goal, but they come at a price.

Shopify is an ecommerce platform that allows you to easily set up an online store. But the problem is, you have to pay for your own traffic, which can get pretty expensive sometimes.

Amazon has a huge advantage in this white label space for a reason: it’s in everyone’s DNA to go to Amazon to buy something online. They have eyeballs, and if your brand and product selection is correct, you can get your offer in front of millions of people who have intent to buy.

The other big advantage of Amazon is trust. With the Amazon FBA program, Amazon takes care of all customer service and handles any issues or returns. So basically if you buy products from the Amazon platform, you are safe with an individual Shopify store.

Amazon has its own selling guides on its platforms, and there are thousands of videos online to help people get the knowledge they need to participate in the ecommerce action.

When you consider the growth of e-commerce, this is a huge opportunity as 36% of consumers are willing to try different brands. Plus, you can partner with the biggest online retailer on the planet, Amazon.

All of these stats align to create the perfect storm of opportunity to help micro-retailers claim their share of the e-commerce pie, even in these uncertain times.

Related: Why Amazon Is About To Further Control The Ecommerce Space

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