E-Commerce Brands Face COVID-19 Challenges: EMarketer
Direct-to-consumer e-commerce sales will grow 24% in 2020 to $17.75 billion, forecast eMarketer Wednesday. It’s the first time the market researcher broke out D2C digitally native brands that started as independent online retailers selling directly to consumers. Estimates exclude travel…
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and event tickets, payments, food or drink services, gambling and other “vice" goods. Brands will face “mounting challenges” from COVID-19, said analyst Oscar Orozco. “Even though consumers are buying more products online due to the coronavirus, digitally native D2C brands should anticipate hardships in the coming months.” Sales will continue to shift from “nice-to-have products to must-have products, with D2C brands falling under the nonessential category,” he added. Disruptions in the supply chain are likely, Orozco said. That will mean slower shipping times, “normally a distinguishing factor for D2C products." Growth rates were already slowing due to other factors, said analyst Andrew Lipsman. The sector is 2.6% of the U.S. e-commerce market, he said.