Shopify Inc. executives believe the shift toward online sales triggered by the COVID-19 pandemic is here to stay.

Chief executive Tobi Lutke and president Harley Finkelstein said Wednesday that early patterns emerging in lockdown-free countries like New Zealand and Australia show consumers have embraced e-commerce even after COVID-19 restrictions are lifted — and they expect North America to eventually see the same.

“Consumer preferences have shifted permanently,” said Finkelstein, in a call with analysts.

“The centre of gravity was off-line. It is now online and there’s no going back to the pre-pandemic version of that.”

The shift has been a boon for the Ottawa e-commerce giant, which helps businesses run online stores but has long had to contend with online purchases compromising less than 10 per cent of retail sales for years.

Source: Toronto Star

Date: April 30th, 2021

Link: https://www.thestar.com/business/2021/04/28/shopifys-q1-net-income-soars-to-126b-revenue-increased-110-per-cent.html

Discussion

1. Why has there been a boom in online shopping during the COVID-19 pandemic?
2. Why, when the pandemic is receding and things are returning in other ways back to normal, is eCommerce likely to continue as it did during the pandemic?