Economic Effects of the Covid-19 Pandemic on E-commerce Businesses

Abstract

The COVID-19 pandemic had adverse effects on health and employment, but it also spurred the growth of e-commerce. The restrictions imposed during the health crisis led to an increase in the use of online platforms as a crucial source of income generation. The objective of this research was to assess the economic effects of the COVID-19 on e-commerce companies. This is an applied research with a quantitative approach, of a non-experimental nature, employing a cross-sectional correlational design and relying on a deductive method using an empirical working mode. By analyzing the annual earnings of 14 online retailers, a consistent growth of 163.53% was observed, with revenues increasing from 98.84 billion dollars in 2017 to 161.64 billion dollars in 2022. These results reveal the positive effect that the pandemic had on this sector and its potential for the future. Based on an investment portfolio, it was determined that during a pandemic, losses could reach 7.72% in a day and 38.24% in a month, due to variations in risk factors. Furthermore, a potential threat to the e-commerce business model was identified in the rise of China as a commercial leader. This could affect e-commerce companies, as China could establish prices and trade agreements in its own favor, creating a general disadvantage.