Effects of COVID-19 on Online Businesses
Cocis-19 has caused more harm and far-reaching impacts on online businesses, technology, business travels, and many economies (Debnath 2020). Currently, coronavirus has taken several people’s lives globally and is still ravaging in various economic areas. Besides, each nation follows lock-down procedures like an approach of averting the spread of the virus (Debnath 2020). It appears that public and private sectors alike have been messed as a result of this pandemic. The truth is inescapable that the novel virus’s impacts shall bear significant effects on various countries’ economies and societies, particularly the developing states (Jelilov, Iorember, Usman, and Yua 2020). The augmenting threats of coronavirus are a crisis to public health as well as hampering macroeconomy entirety. Again, it has taken off most of the supply chains of businesses. Manufacturers and producers have been affected the most as they cannot get raw materials for their products. China forms a key manufacturing hub that sustains multiple businesses worldwide, as indicated by Varshney and Varshney (2017). For that matter, disruption, which affects the output in China, shall have repercussions globally.
As a result of covid-19, several online businesses are getting it hard to sell their products online. Besides, such businesses face tremendous issues as the source for their products, which are drawn from China (Ahmad and Hui 2020). Majorly, as it is known, China deals with machinery, equipment, instruments coupled with communication-associated devices. Disruptions experienced in these sectors shall merely impact the businesses in other countries. Again, most of the developing markets being dependent on China products shall hugely affect their economies.
What is more, lock-downs imposed in various countries obstruct imports and exports of products. All these bear impacts on businesses. Besides, online businesses such as chemicals, communication gadgets, metal products, automotive, office machinery, amongst others, have been disrupted. Multiple e-businesses are currently facing product shortages as they are incapable of satisfying customers’ demands (Craven, Liu, Mysore, and Wilson 2020). This leads to an increment in product prices in the future when normalcy returns in various places over the globe.
Moreover, online businesses are attempting to wrestle with the situation to maintain their operations. Looking at the condition witnessed at Amazon, which is dealing with a single state and many nations, it is accurate to remark that most of the company’s suppliers come from China (Jebril 2020). Therefore, many e-businesses are going to experience pressure when there supply crunch as a result of coronavirus.
The researcher framed the following questions to be answered for this study.
The researcher made a hypothesis that enabled the study to attain its objectives asset. These were research hypothesis for this study:
H2: Online businesses do not face the negative effect of the COVID-19 pandemic in Nigeria
H2: COVID-19 does not influence the customer’s purchasing habits for products coming from China to Nigeria
For the past decades, China has turned out to a known name in various countries. China has turned out to one of the countries that enhance others’ economies (Shafi, Liu, and Ren 2020). It plays an essential role in boosting the economy by offering greater infrastructure, particularly to most developing states (Liang and Litscher 2020). The significance exhibited by China is witnessed in the manufacturing and export of products. Similarly, China supplies immediate products used by most of the manufacturing firms. Over 25 percent of manufacturing goods are generated by Chinese firms (Queiroz, Ivanov, Dolgui, and Wamba 2020). As a result of the COVID-19 pandemic, several states have been facing many issues concerning business operations. Nigeria is highly dependent on Chinese products. Thus, with the sudden rise of coronavirus, the proportion of sales have gone down. Businesses operating online have been disadvantaged, just as private and public firms in Nigeria (Iwuoha and Aniche, 2020). The effects of the coronavirus pandemic have impacted the machinery, automotive sector, and other related industries.
The pandemic has made many retail outlets for a longer period stay closed. The condition has caused unparalleled disruptions to multiple businesses (Karimi-Zarchi et al. 2020). When the key cities in Nigeria declared self-isolation, lock-down coupled with social distancing as some of the ways of containing the pandemic, there has been a change in the purchasing power of various consumers. Barua (2020) alluded to this economic decline in various countries, making most people vulnerable financially. Barua (2020) indicated that coronavirus had caused a decline in various states’ economic standards from all perspectives.
From the conceptual framework in this study, customers’ behavior was taken to be an independent variable. This is because the sample studied reacted independently to the impacts of COVID-19. Thus, the behavior of customers in Nigeria majorly impacts e-businesses in Nigeria. Coronavirus is also an independent variable since the countries’, and the world’s economy has been impacted significantly (Brem, Viardot, and Nylund 2020). Online business is dependent on customers’ behaviors toward Chinese products and Covid-19.
The researcher chose a sample size of 60 participants for this study in a random sampling process. The survey questionnaire was designed and sent to selected participants via online platforms. The researcher employed a 7-Likert scale. This assisted in collecting data from the participants who were chosen for the study. The data gathering process, as done by the researcher, accomplished research aims.
Data collection and analysis
The survey questionnaire was used in the process of data collection. The researcher developed survey questionnaires that will provide pertinent information on the impacts of COVID-19 on online businesses in Nigeria. After data collection, the coded quantitative data were analyzed with the SPSS.
Results and discussion
As indicated in Table 1 below, the researcher chose the demographic variables like age group, gender, income, and occupation of the participants. This was enabled through frequency coupled with individual percentages of male and female participants.
Table 1: demographic structure of participants
As outlined in table 2, the reliability test was performed to recognize reliability and ones that are not. The researcher uses the reliability test in measuring consistency during the research process. As per the collected data, Cronbach’s Alpha was established to the less than as near to 1.00. As a result of this, positive hypothesis selection was prepared through null hypothesis rejection.
Table 2: Reliability test
Kaiser-Meyer-Olkin and Bartlett’s Test
Kaiser-Meyer-Olkin and Bartlett’s Test was in measuring data suitability for performing factor analysis. The test assisted the researcher in quantifying sampling adequacy in support of every variable employed in the model. For this test, the significance value was established to be less than 0.05, that is 0.001. The value of KMO was found to be lying between 0.8 to 1.00. It shows the meritorious coupled with the positive process of data representation.
Table 3: KMO and Bartlett’s Test
From the data analysis, there were negative impacts on Nigeria’s online business as a result of COVID-19. Coronavirus impacted sales alongside the behavior of customers in Nigeria. Again, it was established that COVID-19 weakened the business environment in Nigeria (Otache 2020). Challenges facing online business due to coronavirus lowered customers’ purchasing power, hence reducing supply coupled with the process shipping (Meyer 2020). As indicated in the survey process, the COVID-19 is likely to last, which would degrade the operation of e-businesses coupled with massive losses.
The presence of Chinese products within the Nigerian marketplace lowers the demand for local products in Nigeria. Consequently, more impacts were established to be reducing the presence of online business in the Nigerian market (Abdul and Mia 2020). The analysis supported research questions coupled with research with framed research objectives as outlined by the researcher.
Conclusion and Recommendation
Coronavirus has emerged being the key pandemic in the healthcare system. Researchers are still struggling to establish the motives behind COVID-19 with much hope in which some firms have already developed the vaccine to counter the pandemic. However, this pandemic is worsening in the situation of each nation. Various sectors have been hampered in terms of economic operations. Many countries are attempting to bring back normalcy in every sector, and online businesses have been greatly affected. Thus, it is recommended that researchers perform several studies and provide advice accordingly to the government to bring back the economy to normal.
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