Medical eCommerce During COVID-19
The COVID-19 pandemic is shaking up medical eCommerce performance for manufacturers. With elective surgeries on hold while hospitals pivot to COVID-19 treatment, some manufacturers are seeing massive gains, while others are seeing a sharp drop-off.
When we look at the data for Corevist clients, a clear story emerges: Manufacturers in the medical supply chain are flourishing if the COVID-19 pandemic has increased demand for their products. Those manufacturers that do not fill COVID-19 needs are hurting, even if they sell medical products—likely in part because the healthcare community must prioritize COVID-19 treatment over elective care.
But makers of medical equipment aren’t the only ones impacted. Manufacturers who sell to the medical equipment supply chain are also seeing a change in demand.
In this post, we’ll look at a few representative Corevist clients in medical/pharma and the varied impact which they’re seeing. We’ll also examine some Corevist clients who feed the supply chain for medical manufacturers.
Impact to sample Corevist clients in medical/pharma
Durable medical equipment manufacturer
This manufacturer produces equipment for home healthcare. With COVID-19 patients being quarantined at home, or sent home from the hospital as they recover, it’s likely these numbers reflect an increase in demand driven by the pandemic.
- $11.9M/month average, YTD, as of Feb 2020.
- $31.8M in eCommerce revenue, March 2020.
- +167% change.
Medical, dental, and hospital equipment supplies manufacturer #1
This company produces therapies for conditions which are not directly related to COVID-19. They’ve seen a sharp drop-off in eCommerce sales, likely due to healthcare providers prioritizing COVID-19 patients.
- $7.8M/month average, YTD, as of Feb 2020.
- $3.2M in eCommerce revenue, March 2020.
- -59% change.
Medical, dental, and hospital equipment supplies manufacturer #2
This company produces supplies and equipment used in the treatment of conditions with symptoms similar to COVID-19. Not surprisingly, they’ve seen a large uptick in sales.
- March 2020 sales up 66% over 2019.
Impact to sample non-medical clients who supply medical manufacturers
Adhesives & antiseptic manufacturer
This Fortune 1000 manufacturer sells adhesives for use in numerous applications, including medical supply packaging. They also sell industrial antiseptics for disinfecting manufacturing plants in all industries.
Not surprisingly, their sales have exploded as the COVID-19 crisis deepens.
- $15.9M/month average
- $38.3M in eCommerce revenue, March 2020.
- +141% change.
Capital equipment manufacturer
This manufacturer sells capital equipment in numerous industries, including medical supply. Their IT manager talked to us about the impact which they’re seeing:
“We’ve seen some areas of the business increase (the medical supply portions) and others slow down. Many customers are delaying capital purchases (we do a rather large capital equipment business) until later in the year. Replacement part sales appear to be steady. We’ve seen a general uptick in sales related to medical equipment – especially mask production. Travel restrictions have impacted sales visits but our virtual customer service locations are able to keep up with customer requests.”
The Takeaway: Digital interaction empowers manufacturers to respond to sudden demand shifts
As the data shows, manufacturers who produce equipment related to the pandemic (or who produce goods for that supply chain) are seeing a massive increase in demand. Medical manufacturers whose business is not in line to supply COVID-19-required equipment are seeing a sharp dip in sales.
There’s a lesson here for manufacturers in all verticals. With B2B eCommerce channels already in place, these manufacturers were closer to their customers before the pandemic struck. For manufacturers in the COVID-19 supply chain, that closeness has translated into a seamless growth in eCommerce revenue as demand for their COVID-19-related products has skyrocketed. For those outside that supply chain, eCommerce data gives them transparent visibility into their changing demand chain. It offers the information they need to analyze the impact and pivot appropriately.
Moving forward: FREE case study
Want to see medical B2B eCommerce in real life? Download this case study on PARI Respiratory. You’ll learn how this medical manufacturer transitioned from phone/fax/email ordering to eCommerce and revolutionized their customer experience.