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The Impact of COVID-19 on the Retail Industry

As Covid-19 continues to shape our behaviours, Canadians have embraced e-commerce. Government measures were put in place with many businesses reducing hours, and nonessential businesses being forced to close1, causing Canadians to move to e-commerce which greatly tipped the scales in favour of online versus traditional purchasing. In fact, retail sales saw a decline in May of 17.9% from February, while online shopping nearly doubled with a 99.9% increase.2  Although many retailers have recovered since then,3 the pandemic may have a long lasting impact on the retail industry, as many retail stores have already closed permanently due the changes in Canadian shopping habits.4

It has become apparent that small businesses are embracing e-commerce platforms as they see the importance of integrating with online shopping experiences.5 However, there are many stores that do not have the capability to sell their products online, which can greatly impact them as competitors move to online platforms. In order to not fall behind in revenue, the stores will have to find other creative ways to stay relevant. That is why services like Amazon Hub Counter, which allow stores to become a neighbourhood package pick up point, are key to the continued health and growth of these businesses, bridging e-commerce and brick and mortar locations.

Having an option to pick up packages at a brick and mortar location is greatly important to online shoppers.6 According to new research from the National Retail Federation (NRF), half of online shoppers want to pick up their purchases at brick and mortar locations, rather than having the item shipped to their home or office.7 Luckily online shopping portals like Amazon, offer this delivery option to their customers.

The e-commerce landscape in Canada has been continuously growing over the years8 and retailers need to find ways to work within this consumer demand. Now Prepay retailers have the option of becoming an Amazon Hub Counter location to drive Amazon online shoppers to their physical store. New customers that go into a store to pick up their Amazon packages, are likely to purchase additional items in the store each visit - turning Amazon customers into their customers and increasing overall store revenue.

For more information about how you can become an Amazon Hub Counter location, contact us today!

 
 
 
1 https://toronto.ctvnews.ca/ontario-orders-all-non-essential-businesses-to-shut-down-1.4864492
2 https://www150.statcan.gc.ca/n1/pub/45-28-0001/2020001/article/00064-eng.htm
3 https://www.ctvnews.ca/business/consumers-flocked-to-online-shopping-as-pandemic-hit-with-e-commerce-sales-up-99-per-cent-1.5037581
4 https://www.retail-insider.com/retail-insider/2020/7/retail-e-commerce-explodes-in-canada-amid-covid-19-pandemic
5 https://www.retail-insider.com/retail-insider/2020/7/retail-e-commerce-explodes-in-canada-amid-covid-19-pandemic
6 https://www.theupsstore.ca/10-amazing-stats-about-online-shopping/
7 https://www.theupsstore.ca/10-amazing-stats-about-online-shopping/
8 https://www.canadapost.ca/blogs/business/ecommerce/the-changing-face-of-the-canadian-online-shopper-what-merchants-need-to-know

 

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