Churchill once said: ‘Never let a good crisis go to waste,’ and Covid-19 was the perfect crisis for ecommerce. Once suffering from slow growth and weak economics, the industry witnessed a sudden spike in popularity, as governments around the globe instituted stay-at-home orders forcing people to go online to buy their essentials.
Investors took notice and allocated a lot of capital to this space. Shopify, the ecommerce platform that helps brands sell products online, saw explosive growth in its market cap, closing April at 55% up on the year, all while the S&P500 is down 13%.