COVID-19 concerns effecting e-commerce consumers avoid stores

“Since older individuals are the ones for whom the virus has been most fatal, they may be especially likely to alter their behaviour,” said eMarketer analyst Mark Dolliver. “This could mean more adoption of e-commerce, an area where they’ve been laggards. People whose attitude has been ‘I’d rather die than buy online’ may rethink this if they feel going to crowded, germy stores truly could kill them.”

E-commerce activity, particularly related to health and grocery, is booming in the US in general. According to data from e-commerce ad tech provider Pacvue, there have been surges in Amazon searches for products like hand sanitiser and antibacterial soap. Digital shoppers are also willing to convert on products that they need with longer delivery windows in order to avoiding going to stores, where inventory may be limited anyway.

That’s proving to be a benefit and a challenge to digital retailers like Amazon. The click frenzy is likely to bring in more paid search dollars, but as supply chain issues mount, third-party sellers are looking for ways to limit the impact, including by reducing their ad spending.

“The intersection of merchandising and advertising has long made media-buying on Amazon complicated: You can’t just “set and forget” a campaign if you risk running out of stock or if your pricing isn’t competitive enough to convince shoppers to convert,” continues eMarketer analyst Nicole Perrin. “But the combination of supply shocks and demand shocks due to the novel coronavirus means the situation is more complex and faster-moving than ever before. Advertisers need to be on top of their own supply chains as well as the latest news driving consumer behaviours.”