Understanding global e-commerce development during the COVID-19 pandemic: Technology-Organization-Environment perspective

Abstract

Introduction E-commerce has entered into a new globalized era. As a result, e-commerce practitioners are not only putting efforts toward expanding their domestic market share, but they are also looking to gain more value from cross-border markets. In fact, in countries where domestic e-commerce is already mature, expanding business using current business models can be difficult. In response, the opportunities presented by cross-border e-commerce has gained a lot attention from digital platforms, sellers, and buyers. Cross-border e-commerce (CBEC) or global e-commerce (GEc) is a new type of international trade involving the selling or purchasing of goods from countries located in different regions through online channels, either through proprietary websites or digital intermediaries such as online marketplaces (Giuffrida, Mangiaracina, Perego, & Tumino, 2017). Globally, through e-commerce platforms and social media, suppliers and consumers from all over the world interact with each other and transact online across time and space. In addition, third parties such as finance and logistics services also obtain new opportunities to expand their businesses globally. Recently, the COVID pandemic has impacted all kinds of industries. Among them, some are threatened by COVID significantly such as tourism, hospitality, airlines and travel, and other service sectors (Belhadi et al., 2021; Song, Yeon, & Lee, 2021). For instance, during the pandemic, restaurant operators mentioned that 3% of restaurants have been permanently closed, and 44% have temporarily closed (Association, N. R., 2020). Yet, COVID has also spurred innovation with benefits for some industries such as e-commerce, online education/meeting/conference and vaccine-related sectors. For example, based on Global Industry Analysts’ report, during the COVID-19 crisis, the global market for e-learning estimated at $250 billion in the year 2020 is projected to reach a revised size of $457b by 2026 (Karibwije, 2021). Further, during the pandemic, remote work using online conference software such as ZOOM and other cloud-based peer-to-peer software platforms gain many new users. In addition, companies put more efforts in developing their digital platforms such as adding direct-toconsumer operations and delivery services for satisfying consumers (Evans, 2021). A recent news show that GEc transactions jump to $26.7 trillion during the pandemic of COVID-19 (UN News, 2021). Among different regions, China is ranked as the world’s largest e-commerce market, while India is the fastest growing market (von Abrams, 2021).