USA B2C E-Commerce and Payment Market 2020 & COVID-19's Impact

E-Commerce in the USA surges due to COVID-19 restrictions on movement

To slow the spread of COVID-19 in the USA, government authorities urged citizens in March to confine their movement to essential activities, decimating in-store retail sales during the confinement, increasing unemployment and resulting in a projected decrease in GDP of about one-sixth for the first half of this year. However, the report tells of a surge in online sales of essential products, especially food and health products during the stay at home period, with an expectation that the move to E-Commerce has been accelerated by the pandemic.

Some product categories benefit more than other during the coronavirus pandemic

In addition to the dramatic increase in the online sale of basic goods during the health crisis with digitally initiated food and beverage purchases increasing by over 50% compared to the same period in 2019, the report shows that consumers have also increased online entertainment, such as video streaming and online game purchases. At the same time, online travel and accommodation bookings have plummeted as consumers stay at home in response to the COVID-19 crisis. Concerned shoppers have increased the practice of curbside or drive-through pickup of goods ordered online from those stores and restaurants that remained open during the confinement.

The health crisis prompts a move to contactless payments and affects delivery of goods

Concern about the possibility that cash could be contaminated has led to increased use of debit and credit cards, especially those with contactless capability, as well as use of digital wallets in smartphones with NFC potential, as reported in the new report. The dramatic increase in online orders at the onset of the crisis in March led to a slowdown in delivery times but logistics have since improved.