On top of health concerns, most of the brands across the globe are worrying about how coronavirus (COVID-19) will impact e-commerce as a whole. The first quarter of the year 2020 has changed what everyone considered as “normal”. People have started coping with the “new normal” – social distancing, lockdowns and constantly wearing masks and gloves. As per the new guidelines, people are expected to stay home except for making essential journeys. In such a situation, consumers have come to rely heavily on online shopping as their lifeline. E-commerce businesses are trying to survive and maintain their brand image by adapting to new customer behaviour and improving the business model.
Post COVID-19 Status Of E-commerce Business
The business experts have stated that post-COVID-19, e-commerce businesses are expected to rise whereas the brick-mortar business would go down. The pandemic is going to shift the world of e-commerce. This upsurge in the e-commerce business is due to the closed down physical store. Therefore, there are numerous customers who are turning towards online shopping. In the first quarter of the year, there had been a drastic growth in the e-commerce business as business owners moved their businesses online. This growth is expected to increase and experience a long-term trajectory post-COVID-19.
How E-commerce Business Need To Adapt With Customer Behaviour
COVID-19 had brought drastic changes in customer habits. While some are going on an online shopping spree, whereas others are limiting their spending to the bare essentials: food, groceries, health and wellness products, and the like. These days people have more time on their hands, and due to this e-commerce businesses are finding that customers are leaving more product reviews on online review sites and even on company websites. Online engagement has also gone up, with customers being more responsive to marketing and promotional messages, including those from social media channels and email campaigns.
Issues In The Supply Chain And Inventory Management Post COVID-19
Post COVID-19, e-commerce businesses are expected to face inventory shortages and production delays. Shipping and logistics will be an issue in some areas due to the governments imposing restrictions to avoid further spread of the virus. All the e-commerce businesses around the world are trying to adapt the best way they can to the global COVID-19 pandemic.
E-commerce Businesses Must Incorporate New Strategy To Fight COVID-19 Change
E-commerce websites can easily increase the revenue in this situation, but only if their customers can find them. If the e-commerce business incorporates new online marketing strategies, they can increase their sales and generate good ROI. A strong online presence is vital in this period of risk vs. opportunity, and businesses should invest in online marketing tactics, including content marketing, social media marketing, and SEO.
Pro Tip: Transforming threats into opportunities is possible; all you need is the right mindset and an agile approach that allows for some flexibility.
COVID-19 And It’s Long-Term Impact On The Ecommerce Industry
Generally, people had started adopting the new ways of shopping through e-commerce websites. But due to the widespread of the coronavirus, there has been an exponential growth in the customers who prefer to buy through e-commerce websites. The reason behind this sudden growth is due to safety measures. E-commerce websites provide contactless delivery and payment methods which are quite beneficial options for everyone. These features, you won’t get in brick and mortar shops.
According to the survey, online buying customers claim that they would not be returning to physical stores until the vaccine for COVID-19 is available. The number of online customers had been increasing since mid-May. This sudden change in the custom behaviour was due to the spread of COVID-19 and this changed behaviour is expected even after the effect of COVID-19 reduces.
E-commerce websites have found that although there has been a rise in the number of online customers, most of them belong to the high-income household. Lower-income households are still managing the meagre grocery requirements from the physical stores. The overall growth of the e-commerce sector could only be possible when more and more people from across the country would get involved in online shopping.
The effects of the current COVID-19 crisis has forced customers to change their behaviours and daily routines. Nowadays, people are trying to adjust to the new normal. They have started working from home, minimizing social interactions, and not going anywhere due to government restrictions and quarantine rules. People have received the silent message that COVID-19 would not be going away anytime soon. Along with the people, e-commerce businesses have also made amendments in the consumer policies to comply with the COVID-19 Guidelines. E-commerce platforms have started providing medical equipment embraced contactless delivery guidelines and they have also reduced the commodity prices (provided offers and discounts) so that products are reasonable for everyone to buy. Due to these changes, people would be attracted to online shopping for everything right from medicines to groceries.