E‐commerce and supply chain resilience during COVID‐19: Evidence from agricultural input e‐stores in China

Abstract

AbstractCOVID‐19 has caused major disruptions to agricultural supply chains around the world. Researchers and policy‐makers are interested in identifying means to reduce the disruptive effects caused by the pandemic. We investigate the impacts of COVID‐19 on the operation of e‐commerce stores (in short, e‐stores) specialising in agricultural inputs. The difference‐in‐differences method (DID) is employed to estimate the causal relationship between COVID‐19 and online sales of agricultural inputs using data from 54,244 agricultural input e‐stores registered in 118 prefecture‐level cities across 15 provinces and hosted on two major Chinese e‐commerce platforms. The results show that COVID‐19 led to a substantial growth in monthly sales of agricultural input e‐stores, and this growth of online sales varied across store scales and by types of agricultural inputs. In particular, e‐stores selling seeds and seedlings experienced a larger growth in sales than stores selling agricultural machinery and implements, and the mid‐ and larger‐scaled e‐stores experienced more growth of sales than micro‐ and small‐scaled e‐stores. Further analysis reveals that the growth of online sales of agricultural inputs was driven mainly by an increase in the quantity of customer orders (QCO). The findings of this paper underscore the importance of e‐commerce in ensuring the resilience of the agricultural supply chain during the pandemic period.