Impact of COVID-19 on eCommerce and Web Hosting Industry

In 2018-19, experts predicted the directions of growth, changes
in the scope of the industries, and most importantly, the emerging
trends in consumer behaviour. Brands created marketing strategies
based on these well-calculated predictions that were the results of
data and trends. Global investors invested billions of dollars in
different industries hoping that the year 2020 would be the year of
great ROI.

Everything was going more or less according to the plan until
China’s WHO office reported the first case of an unknown virus on
Tuesday, 31st December 2019.

Within the five months of the first officially registered case
of coronavirus (COVID-19), the global pandemic has shaken the world
upside down, expected trends and predictions have gone out of the
window.

The global lockdown resulted in a loss of jobs and negatively
impacted the GDPs of every country. Among the global chaos and
uncertainty, few industries flourished and achieved their growth
predictions. eCommerce and Web Hosting (PHP
Cloud Hosting
and Managed or Dedicated Hosting) are among the
fortunate industries which are doing well despite the prolonged
lockdown and ongoing pandemic.

The growing eCommerce industry is one of the major reasons why
the web hosting industry is doing well. Now, more than ever, brands
are focused on quality online presence and ensure flawless
eCommerce experience. Delivering a great UX and UI requires a
powerful and extensible hosting infrastructure.

COVID-19 and eCommerce Industry

The COVID-19 pandemic is the defining event of the year 2020 and
the implications are being felt as businesses remain closed because
of the lockdown. Taking businesses online is the only option to
sustain operations. In many cases, the process of transitioning
businesses to the online model is really easy as modern eCommerce
platforms very effectively mimic the processes of offline
businesses. 

Changing Consumer Behavior

Along with the new wave of online trends, one of the most
significant trends is the changes in the behaviour (what they buy,
how, and when) of online buyers. The focus has moved to bulk-buying
(because of unsure conditions) and brands need to accommodate this
change in their online commerce industry. 

eCommerce fueling the Web Hosting Industry

In 2018, the
web hosting
industry was predicted to grow at 13% CAGR and one
of the key drivers of the market growth is the growing eCommerce
industry. The market is expected to add $72.79b by 2023. With the
current global conditions, the industry seems to be reaching the
2023 numbers much earlier because of the induction of local brands
and small businesses focusing solely on the online business.

Businesses that were operating out of small product pages on
Facebook or Instagram now aim to organize themselves better in
order to compete with thousands of similar competitors. It goes
without saying that these emerging businesses will be the new face
of eCommerce and will bring in new customers for the hosting
industry.

Competition Within the Web Hosting Industry  

Web hosting industry reached the saturation point in 2019 when
we have big names in shared hosting (GoDaddy, NameCheap,
Hostgator), cloud IaaS (DigitalOcean, AWS, and Google Compute
Engine) and many providers with several hybrid infrastructure
models. Add thousands of their resellers and affiliate sellers and
you can imagine the density of offers and choice. The only thing
that distinguishes a web hosting brand from the rest is the quality
of customer support and flexibility of operations.

The competition is by no means over as brands transitioning to
online commerce continue to fuel the web hosting industry. This is
a positive sign for eCommerce businesses as well, because, in order
to get more business, web hosting brands have to increase their
quality of services and deliver them at very competitive
pricing.

What to Expect in the Rest of 2020?  

To be fair, this is a difficult question to answer because
COVID-19 conditions are changing very quickly. China has removed
the lockdown in Wuhan, and counties like New Zealand and Australia
have managed to contain the spread of the virus by implementing
early lockdown strategies. As a result, these countries have been
able to resume day-to-day business. However, the global business
centres, the USA and Europe are still fighting hard and trying to
contain the epidemic ASAP.

Ecommerce and web hosting industries are going to flourish and
grow rapidly in 2020 and onwards. There is no denying the fact that
the eCommerce industry has become more competitive because of the
influx of new brands. Add the changes in consumer psychology to the
mix and you can easily imagine the stiff competition that would
benefit both the consumers and the overall eCommerce industry.

For eCommerce businesses, this is a time to experiment with new
strategies in order to adapt to the change and tweak operations to
capture a larger piece of the pie.

Conclusion

eCommerce and web hosting industries are rapidly evolving in the
ongoing COVID-19 crisis and it is too early to fully understand the
magnitude of the impact. However, experts are certain about fast
track changes in both industries. 

For entrepreneurs, this is a good time to get into the eCommerce
arena with new ideas and experiments. What worked for the industry
just six months ago is simply not valid anymore. With the right
strategy, the eCommerce industry can be disrupted all over
again.

Let’s keep a positive stance on the overall global conditions
forced by the virus by allowing the businesses to grow along with
the change.

What do you think is the biggest opportunity available for
vendors in both industries? Let us know in the comments below. 

Photo by Austin
Distel
 on Unsplash

Source: Marketing Blogs
Impact of COVID-19 on eCommerce and Web Hosting
Industry