Report: The Increasing Popularity Of Online Services Through 2020
Throughout the pandemic, businesses in America and around the world have struggled to stay solvent. Some of these businesses are unable to function without customers being physically present. Restaurants and other types of companies in the hospitality industry are the most commonly cited examples. Other businesses could technically continue to function, but hadn't built an online presence.
In this context, it is unsurprising that online services flourished through 2020. The most obvious examples are ecommerce companies. Amazon saw growth in its customer base and increased use from existing customers. More companies started selling goods on Amazon's online marketplace.
eBay is another big winner in the ecommerce space. One of the oldest ecommerce platforms, eBay has been losing ground on Amazon for years now. The pandemic gave it increased impetus to expand its offerings. eBay's user-base skyrocketed, as did its subsequent profits. Whether it can maintain this momentum after the pandemic, however, remains to be seen.
But ecommerce is not the only industry providing online services that got a boost from the pandemic. These are some of the industries that have seen the biggest rise in online business.
Industries that benefited from COVID-19
The growth of industries that provide online telecommunications services needs little comment at this stage. We all know that Zoom, Skype, Microsoft Teams, and similar services have flourished during a time in which face-to-face contact is often impossible.
Rather, the services that quietly grew in popularity during 2020 will provide more food for thought.
Accounting is one such industry. If you haven't changed the way you do your accounting over the last year, you may be wondering why online services should be benefiting. After all, can you not just speak to your accountant over Zoom?
However, with an increased dependence on online services, individuals and companies are realizing that the services offered by traditional accountants are unnecessary and can be cumbersome instead. Rather than paying an accountant huge hourly fees to deal with your books, algorithms can do the job more efficiently and for a lot less money. Even simple budgeting apps are providing individuals with control over their finances they are unlikely to cede.
Another industry that has benefited from COVID-19 is online legal services. Again, these services provide far more than an alternate way to get in touch with a lawyer. Instead, they take the extremely high hourly fees charged by lawyers out of the picture. In doing so, they make legal services more accessible to all.
Online payments have also made a lot of ground. It is becoming increasingly clear that not only is cash an extremely outdated payment method, but physical cards are as well. There are easier ways to pay, whether through third-party apps like Venmo or PayPal, or through native services like Apple Pay. In an age when physical contact is dangerous, online payment services are an intuitive alternative.
Let's take a look at how this increase in popularity of online services has impacted specific companies.
LawDepot
As mentioned, online legal services have grown in popularity during the pandemic. LawDepot is one company that has really made the most of the situation. LawDepot's rating is among the industry's highest and for good reason. Its services are varied and easy to use, making legal documents available to everyone for an affordable price.
Last will and testaments are obviously in high demand right now. With a virus killing hundreds of thousands of Americans, we are all a lot more aware of our own mortality. Leaving a will makes life much easier for the people we leave behind. Services like LawDepot have shown that a will is an incredibly simple document. It can be drawn up by an algorithm that ensures all your wishes are expressed coherently with no room for loopholes.
For same-sex couples who are still somewhat disillusioned by the institution of marriage, these kinds of services can be hugely important. When one member of the couple has passed away or is incapacitated, disputes can easily arise between the person's biological family and their partner. In these cases, having no legal relationship to the person can be decisive.
Documents such as wills and power of attorney give your partner the power to make the decisions in your best interest, even without marriage. With a service like LawDepot, you can create these documents in no time at all.
FreshBooks
FreshBooks is an online cloud-based accounting services package that is perfect for small business owners or self-employed individuals. During the pandemic, more people have begun to use FreshBooks as a way of invoicing, managing payroll, and keeping track of business finances.
The pandemic has done damage to businesses that sell themselves on their "personal touch." Many professional accounting services have long been available online, and freelancers in particular have benefited from them. But it took until 2020 for many business owners to put their trust in the software without hiring or outsourcing to an accountant.
Payoneer
While you may be more familiar with PayPal, Payoneer has managed to increase in popularity throughout the pandemic. They are helped by the popularity of services like Amazon and their increased use by retailers around the world.
If you don't use online payment services all that often, you may not be aware that Amazon does not allow payment through PayPal. Neither does it allow sellers to get paid through PayPal. This is no problem for people living in the US, the UK, and other countries with Amazon presence. However, in countries without localized Amazon services, it makes it difficult for retailers to receive payment.
Payoneer has succeeded where PayPal has not by essentially providing a US bank account where people outside the country can direct Amazon to send their income. They can then easily withdraw their funds from Payoneer.
The pandemic has done damage to millions of businesses around the world, but has also opened the door to new types of businesses and the increased success of some established businesses. Online services have flourished, and it is unlikely that people will stop using them even once the pandemic is over.