Will Amazon emerge as the bigger profitable company during the pandemic?
The situation has certainly closed businesses all around the world. But it is a whole different thing to think that those who profited big during the covid-19 did it in some way that might be considered unfair. But even though the unexpected event actually pushed those kind of businesses to great heights, the fact is that nobody was expecting it. So, the purchases done through simples clicks online were definitely the types that increased. The online company founded by Jeff Bezos nearly doubled the online sales only during May 2020. And the process that involves the sales on Amazon is not actually done with their own goods. There are sellers who advertise their products on Amazon.com and pay an Monthly fee to be able to maintain their online businesses on the Website.
Probably because it was better for everyone
As people were facing lockdown measures and social distancing restrains, that made shopping online a lot more appealing and reliable than with the traditional forms of retail with physical shops. Many sellers that were already profiting before the pandemic complained that the company has worsened in terms of its policies during the Pandemic. There is a Monthly fee of approximately U$ 39,99 depending on the plan chosen by the retailer and cutting about 30% of the goods sold on the platform. This is not an unusual thing if you imagine that a business like that is profiting so much during the pandemic, people are simply buying online as they think it is safer.
The next decade will be all about economical recovery?
Traditional points of views will not actually be considered the best way to analyse our current situation. Many say that the economical structure is slowly melting down, but we have seen a capacity of at least standing up with the system even during the hardest days of lockdowns. And this was something never seen before, because many people are getting help when it comes to reinventing their own businesses. Unemployed people have become freelancers and are trying to start businesses that were more profitable then their previous jobs. So there is not as much as hopelessness, at least so far, and even more with governments trying to maintain some kind of help for people to start their lives again. But as this happens, big businesses such as Amazon are getting even more massive with technologies that are in many ways difficult to match with when it comes to smaller businesses.
A slow and also low process of recovery
Specialists in economy all over the World are actually declaring that the 2020 recession will take a “Low and Slow” process. The low means the numbers and economical results obtained from a rebound after the decrease that happened on all types of markets. Some are more optimistic idealizing that we can actually be on a type of “V shaped” process of recovery. Many fear that for the economy to return to the point where it was prior to coronavirus might take several years and certainly a lot of effort. Of course that we have a scenario that can’t be compared to the recession that took place in 2008, in some years people started to gain confidence and started to invest again. Now we are not really certain with regards to the future of our economy, sometimes our hope is a bit restrained by the fact that covid-19 is really easily spread. But now many are feeling less troubled because despite the rate of morbidity and risk, more people are actually surviving. Besides that, the possibility of growing as online businesses and sending goods via mail or by delivery all over the world is actually helping a lot the process of stopping an economical disaster and generating hopes of recovery.
Conclusion
In this article we discussed the possible effects of the pandemic of coronavirus and also the possibility of recovery within the next few years. Did you like our post? Don’t forget to follow us on our LinkedIn official page to see the most interesting news about worldly affairs as well as economics in Brazil and abroad.
References
CNN.COM. Uh-oh: The low and slow economic recovery is back. Available at: <https://edition.cnn.com/2020/09/08/investing/economy-recovery-low-slow/index.html>.
TIME.COM. Many Companies Won’t Survive the Pandemic. Amazon Will Emerge Stronger Than Ever. Available at: <https://time.com/5870826/amazon-coronavirus-jeff-bezos-congress/>.
