IMPACT OF CORONAVIRUS ON AMAZON AND ALIBABA A QUICK REVIEW
As all of you know the current impact of coronavirus on health and education. impact of coronavirus is now showing globally as well as it has disturbed businesses world wild. Coronavirus put a bad impact on amazon.com as many of the sellers facing the same problem that is no stock available for their product most of their listings or inactive and out of stock. As many of the sellers rely on Alibaba.com so when Alibaba.com many of the suppliers stop supplying the orders.
Corona-virus is shaking up business and consumer behaviour on a massive scale. Both the public and private sectors are scrambling to slow the spread of the illness and contain COVID-19 infections. While the full economic consequences of this black swan event are still unclear, we know that the effects that the virus and the drastic measures being taken to contain it are already precipitating change across industries.
Advantages Due to the Impact of coronavirus:
While online shopping may benefit in the short term as most people not allowed to go outside the house to purchase the things so it will boost the sales online orders may increase.
The assumption that Corona-virus, social distancing, and staying home will boost e-commerce is widely held among digital marketing experts. However, early findings suggest the reality will be somewhat more complicated.
Disadvantages Due to the Impact of coronavirus:
Pressure on e-commerce:
Consumers will shift more and more purchases online as they avoid public places, with Amazon, delivery services and the online divisions of major retailers (e.g., Target, Walmart) as the biggest beneficiaries. Indeed, foot traffic in shopping malls is down. However, supply chain issues, product shortages and potentially declining consumer demand could also blunt e-commerce growth if the economy falters or goes into recession.
IMPACT OF CORONA VIRUS ON ALIBABA.COM
Alibaba Group Holding Ltd. warned that the corona-virus responsible for killing more than 1,300 people in China is exerting a fundamental impact on the country’s consumers and merchants, and will hurt its revenue growth in the current quarter. As the whole country is lockdown so its very difficult for the supplier on Alibaba to work and provide the goods to their customers.
Due to coronavirus, the areas where the virus does not hit the supplier have a great profit mentioned below
Sales in Alibaba’s core commerce business jumped 38 per cent to 141.48 billion yuan in its third quarter ended Dec 31, while revenue at its cloud computing unit surged 62 per cent to 10.72 billion yuan. Total revenue rose about 38 per cent to 161.46 billion yuan, beating estimates of 159.28 billion yuan.
E-commerce giant Alibaba expects new challenges ahead, as it warned of the potential negative impact of the new virus’ outbreak on the global economy. Small merchants on various online retail platforms have been hit hard, as labour supply and logistics are constrained by government measures to restrict travel and lock down a number of communities.