WTO: e-commerce platforms grow with the pandemic

An analysis of the World Trade Organization (WTO) highlighted that online e-commerce platforms have seen significant growth since the start of the Covid-19 pandemic.

Amazon, a US-based e-commerce company, posted revenue of $ 75 billion in the first three months of the year, averaging $ 33 million an hour.

MercadoLibre, the leading e-commerce technology company in Latin America, reported a 70.5% year-on-year increase in net revenue in the first quarter of 2020.

Chinese e-commerce giant Alibaba reported that its sales grew 22% in the first three months of 2020, despite virus-related restrictions reducing activity.

In general, the WTO highlights that much of digital innovation is taking place in developing countries.

In Senegal, the Ministry of Commerce is partnering with the private sector to facilitate the delivery of essential goods and services through electronic commerce.

In Uganda, the Ministry of Information and Communication Technology and National Guidance has called for the development of digital solutions in the fight against Covid-19 to support health systems and the provision of public services.

WTO

Digital payments help people avoid a potential Covid-19 infection while keeping economies running, and they also help get stimulus funds into the hands of consumers more quickly.

For example, local governments in China have distributed coupons through WeChat Pay to encourage immediate spending.

The WTO also indicated that the digital option applies to the transfer of remittances, since restrictions on mobility during blockades related to Covid-19 limited the possibility of sending cash remittances.

In addition, central banks have temporarily allowed businesses and banks to reduce or eliminate transaction costs and fees for digital payments and mobile money transfers to encourage the use of mobile money instead of cash.

Some small businesses were able to adopt digital technologies quickly, such as Indian food tech company Zomato, which used its platform to work with grocery startups to fulfill growing online orders.

Government side

Governments implemented measures to help companies innovate and adopt digital technologies to strengthen their resilience in the face of economic shocks.

For example, the Distance Business Program (Hong Kong, China) is a time-limited program that provides financial support through expedited processing for companies to adopt IT solutions to develop distance business.

Driven by social distancing and stay-at-home requirements, digital services that can be delivered electronically have flourished.

According to the WTO, an average of 40% of workers in the European Union and the United States have worked from home due to the pandemic, although the rate of teleworking has been lower in developing countries.

In particular, levels of remote work have increased significantly in sectors such as IT services, business and professional services, and financial activities.

To make teleworking possible, the WTO concluded, companies invested in digital transformations, especially in the service sector. Workers have learned to use groupware, access remote databases, and participate in virtual meetings.