According to a New York Times article, Amazon sales are up 26% from a year ago in the First Quarter of 2020. Motley Fool’s stock recommendation service doubled down on their recommendation of Amazon as a buy. Etsy, a marketplace for small handicraft and other sellers, also reported a 34.7% increase in marketplace revenue. eBay is pretty much even for the 1st Quarter, with a 1% decline in marketplace revenue.
As large as these companies may seem, they have one thing in common: many of the sales made on these platforms are made and fulfilled by small companies. The anecdotal information we have is also encouraging: a $5 million retail distribution company is up 40% this year over last, with most of the increase coming from online. Another small retailer client reported a 49% increase in online sales.
Coronavirus is devastating sectors of the economy, but it may also offer an opportunity. If your business is not currently online, now might be a good time to test the water. Let us know if you would like some suggestions.