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Coronavirus Impacts on E-commerce - Threats and Opportunities

Information Security

Coronavirus Impacts on E-commerce - Threats and Opportunities

Forbes indicated that the top 18 e-commerce marketplaces account for more than US$1 trillion in global sales annually. There is no doubt that the influence of e-commerce companies become irreplaceable today. The coronavirus outbreak has caused several countries to put their cities into lockdown. E-Commerce has even become an indispensable platform for people to purchase necessities such as food, houseware, face masks or other anti-virus goods during the period.

Behind the Rapid Development of E-commerce

According to official statistics from Alibaba, the sales of “Singles’ Day 2019” (November 11, 2019) reached US$38.4 billion, which is a double of 2016. More and more companies realized the opportunities of e-commerce and has changed their business strategies from retail stores to online platforms, even the food industry.

Technology is one of the key factors to empower the evolution of E-commerce. Chatbots powered by Artificial Intelligence (AI) and Machine Learning (ML) allow companies to handle enquires promptly to ensure customer support 24/7 without any human intervention and provide sophisticated shopping experience to the customers.

During the outbreak, some manufacturers and resellers hit the rock when selling their anti-virus products online. Huge website traffic caused their websites to be shut down immediately once the products were put on stock. Obviously, they cannot manage the burst of unexpected traffic, which actually can be easily solved by the network load balancing solutions. It proves again e-commerce companies cannot neglect the importance of technology applications.

The Only Winner from the Battle with COVID-19?

Undoubtedly, people are more willing to purchase products through e-commerce platforms because of the threats of COVID-19. This will definitely accelerate the escalating adoption rate of shopping through e-commerce platforms.

We all know e-commerce can weather the economic impacts in this hard time. However, the increasing data breach incidents pose security threats to online shopping. E-commerce platforms process and store lots of customer’s personal data every day, including name, address, credit card information as well as other personal identifying information. Every online merchant is responsible for protecting its customer data with proper data storage, backup and disaster recovery plans.

Apart from data breach incidents, Distributed Denial of Service (DDoS) attacks are another security issue for e-commerce platforms. The cyber criminals often send requests to the servers using thousands of untraceable IP addresses. As a result, the platforms will slow down or even completely shut down, which will prevent them from conducting online transactions.

E-commerce has changed everyone’s lifestyle, particularly the purchase behavior. Without proper security measures in place, these platforms are at risk of breaching customer data and sales revenue. Integrated security solutions are vital for e-commerce businesses to sustain their future development.

As your trusted cloud and security services provider, CITIC Telecom CPC offers a comprehensive suite of SmartCLOUDTM cloud computing solutions and TrustCSITM managed security services that enable every business to substantially reduce costs and maximize flexibility without compromising in enterprise-grade security, privacy or availability. Contact our ICT consultants now for a free consultation today!

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