In this pandemic, not only are health concerns arising across the globe, but COVID-19 has made a great impact on the whole E-Commerce industry. Here are what business owners should know and the ways to cope with the ongoing change.
COVID-19: Positive or Negative Impact on E-Commerce?
Does COVID-19 have a positive or negative impact on E-Commerce? The answer is both, and it’s complicated. This pandemic made us stay home, work from home, study from home, and shop from home. The mandate has forced millions not to leave their residence to stop the spread of the virus.
This pandemic will change how consumers will think of online shopping forever. E-Commerce indeed flourished, and the numbers don’t lie:
- As of April 2020, the numbers show that U.S. and Canada E-Commerce growth reached up to 146% in all online retail orders.
- As of June 2020, social media and online platform traffic increased, surpassing the holiday season peaks.
- In countries greatly affected by COVID-19, people prefer to stay at home and avoid crowded places. That is why most consumers resort to online grocery shopping for their everyday needs. According to a poll, most of the consumers started to buy groceries online because of the pandemic.
Research showed that during the pandemic, not only are grocery supplies in demand but other items too.
- Sanitation and Hygiene Supplies like gloves, face mask, face shield, hand sanitizer, alcohol, disinfectant, wipes, and other cleaning supplies are among the most purchased supplies online.
- Home improvement needs are on the rise because people want to make their homes as comfortable as possible.
- Exercise equipment is in demand because fitness gyms are closed, and most people resort to working out from home.
- Gadget sales are also in demand due to study and work from home set-up. This also includes purchasing gadgets for entertainment purposes like PS4 or a new T.V. Samsung expected better earnings for the remaining quarters of 2020.
Due to the steady growth of the internet and mobile users worldwide, the E-Commerce market is expected to keep growing. More and more people are now familiar with online shopping and how it works. Consumers now realize the convenience and significant savings when shopping online, plus the time saved going out.
There are E-Commerce products whose sales plummeted due to the COVID-19 pandemic, and this harms their business. These are mostly related to the travel, tourism, and leisure industry since traveling is not possible as of the moment.
The industries struggling due to the pandemic are as follows:
- Formal Wears
- Coats / Jackets
- Luggage / Suitcase / Briefcase / Travel Bags
- Lunch Boxes
- Make-up / Beauty Products
- Luxury Goods
These are the goods that people do not need because they only stay at home. For business owners who do not have a physical store and solely rely on E-Commerce for sales, this left a critical impact.
In addition, online retailers face the challenge of E-Commerce demands. There are problems with the limited supply due to delayed shipment, and being overwhelmed due to many orders. Some online retailers cope with the change, while some find it hard to fulfill their customer’s demands.
How Can E-Commerce Businesses Cope with the Pandemic?
These times are uncertain for some businesses; there will be changes even in a short period; how can you cope? During these times, the secret is resilience, and the goal is survival. How can business owners cope with this pandemic? Here are some tips.
Improve Your Online Presence
Above all this, your first step is to improve your online presence. Let the world know that your products can be purchased online. If needed, make a website, create social media accounts, learn about SEO, hire professionals. Do whatever it takes to expand your internet presence.
Establish Store Credibility
After you improve your online presence, it’s time to establish your store’s credibility. Yes, you have an online presence, but visitors on your website will ask: ‘Is this online store a scam or not?’. Your goal is to prove that your store is trustworthy.
This can be done through trusted payment channels, reasonable return policy, positive customer reviews, excellent customer experience, and focus on product quality and availability.
Aim to Survive
If you’re one of the industries mentioned above struggling during this pandemic, maybe it’s time to re-think your strategies. Do not wait for the travel and tourism industry to be back on track because we don’t see it improving during the pandemic.
It would be best if you aimed to survive by venturing into most bought retail goods. You can start re-selling face masks or get involved in foods and other commodities.
Fast Shipping and Delivery
No one wants to wait for their products to arrive after a month, right? Regardless of the delayed shipping because of this pandemic, your online store must have a third-party delivery service that is trustworthy and fast.
It is suggested to have real-time packaging and make sure your customers can track their orders to have that peace of mind.
If you are unsuccessful in blocking fraudsters, there will be stressful disputes you will surely handle at the end of the day. You can save time and avoid this stress by hiring third-party services in facing these issues.
The competition is more stringent than ever, so business owners should up their game. Run special offers, promos, develop loyalty program schemes, connect to your audience, use email marketing, and set up calls if needed.
The challenge with E-Commerce is your competition has now increased because of the many online stores available, not to mention the big tycoons like Amazon and eBay. Learn to adapt, do your research, and learn how the industry works. This is an endless pursuit of competing against other online stores.
Embrace the New Normal
It is uncertain when this pandemic will end. But one thing is certain, this pandemic has dramatically affected the E-Commerce industry, and it’s undeniable. Business owners should embrace the new normal and cope with the changes.