How COVID changed online retail

A recent research study among Austrian and Swiss online retailers, conducted by MCI | Die Unternehmerische ^Hochschule® (FH Prof. Dr. Claudia Brauer) and the ZHAW School of Management and Law (Dr. Darius Zumstein), showed that nine out of ten online shops grew in terms of turnover during the Corona pandemic and more than half gained a large number of new customers. In addition, customers buy more frequently from about 40% of the online retailers, and additionally larger quantities from every second one of them. In this context, 92% of the online retailers surveyed also expect sustainable sales growth in the coming period.

Orders in online trade

In 2020, the online shops surveyed recorded an increase in orders in all product groups compared to 2019. Online retailers saw particularly strong growth in garden and do-it-yourself articles, toys, furniture and sports equipment, as well as food. By contrast, the demand for computer, multimedia and electrical appliances, which has been very strong for years, flattened out slightly in 2020. A large proportion of online retailers also sell on digital marketplaces such as Amazon.

Future forecasts and challenges

In response to this sales growth, the majority of online retailers have hired additional staff, especially in the e-commerce departments, as well as expanded warehouse capacities and invested in IT systems. The current challenges of online retailers also include problems with procurement: around three out of four suppliers state that suppliers are delayed or unable to deliver. Among the omnichannel providers, more than half expect that there will be fewer brick-and-mortar shops in the coming years. However, new shopping formats such as showrooms and click collect are being used as possible replacements for brick-and-mortar shops. The current study also shows that social media channels (especially Facebook and Instagram) as well as various messenger services are often used by customers in the course of the sales process. However, many online retailers consider trade fair appearances and retargeting as marketing instruments to be less important for addressing customers. Common payment methods in Austria and Switzerland among retailers include credit card and invoice, as they have for many years.

Online retailing in the curriculum at MCI

Claudia Brauer, MCI professor, was instrumental in the study, which was published in September 2021. She is the academic director of the Executive Education Master Digital Marketing & Analytics, which deals with technical, strategic and legal application know-how in the field of strategy development and online marketing. She also teaches at the Department of Business & Management at MCI | The Entrepreneurial ^School®.