Impact of COVID-19 On The E-commerce Market

The global spread of the Novel Coronavirus, commonly known as COVID-19 has impacted almost all of the businesses in the market in one way or the other. Ecommerce, however, is playing a critical role in the fight against COVID-19, with online retailers experiencing a flood of orders from customers confined to their homes.

GlobalData’s recent report, COVID-19 Impact on Ecommerce, reveals that COVID-19 will have a long-term positive effect on the e-commerce sector, with even the most sceptical consumers forced to abandon physical stores in response to restrictions on movement.

What is most surprising is that everybody has adapted to the situation we live in and changed rapidly, ranging from limits on personal rights to improvements in general working practice! Every company in which we operate has been impacted in some way so far, but it is very interesting to see how businesses have responded, not only because they must adapt to new workplace protection policies and remote operations, but also because they begin to change their trade approach.

Most retailers of all channels are expected to change towards purity, some see a growing demand for certain product lines, while others are adapting to new consumer innovation. We have seen companies adapt their approach to supporting logistical challenges, with many increasingly relying on Amazon as a distribution and a main route towards the market at this difficult time.

The lockdown and the surge in online activity we’ve seen in Google Trends generally is pushing people to try new ways to get essentials, and also to satisfy their non-essential retail impulses through e-commerce. This will definitely bring about a longer-term change in procurement conduct, but to what degree we can only be aware of the wider economic impacts and the duration of the social distances. This volatility is never a perfect way to boost consumer trust and to raise total net spending. However, there is definitely potential for those brands and retailers in the right segment that can have a good online trading experience at all costs to sell more and attract the new consumers for a longer period of time.

Various approaches to government and developments in quarantine-friendly communities make forecasting a little harder. Most shoppers want to purchase important items and food online that normally would not. As a consequence, a behaviour improvement in this category may be predicted over a longer time. However, considering that most of these programs have failed to fulfil this order, many of them have been mixed up. As seen in those search trends, for other categories like hobbies, home entertainment, and home and garden, there’s plenty of opportunities right now if brands and retailers can get delivery and no-contact click and collect systems working effectively over the coming weeks. It’s an opportunity to build connections with many new customers as well as to get current customers to construct accounts for the first time and to attempt online enforcement methods.

Despite all of the odds against us, we should ensure that we keep e-commerce companies afloat on digital channels whenever it is possible.

In these tough times, we have established some of the approaches that e-commerce companies can use to increase their businesses and help ease the lives of customers.

Ensure Consumer Health

First and foremost, it is important to convince consumers that they first put the protection of their employees and their terminal customers. Consider modifying the ad copy, website landing pages and even adding pop-ups to undo any concerns about orders while keeping them secure.

Even the call-to-action you use in marketing with such financial volatility in combination with health issues, it might not be the time for hard-to-sell CTAs.

Then use this room to show consumers that you truly care for their well-being and deal as accountably as possible. Conversion levels are likely to increase as a result of this reassurance, but you should definitely review the return policy as well to ensure that consumers feel at ease while buying.

Examine your present goals and Key Performance Indicators(KPIs)

One of the most important things to consider, at this time and at all times, is whether your goalposts should move during this period of enormous fluctuations (P.S. they should). If your business usually looks at online and offline sales and optimizes them accordingly, you will need to review how performance has changed since stores have closed their doors and tailor your KPIs and targets to online accounts only.

Maybe you currently use physical marketing modes like home installations or the means of flyers, either that is much less successful or it will not be feasible in the next few weeks, and so budgetary adjustments would lead to ensuring that any new consumer is able to interact with your brand and purchase from a safe environment via digital channels. This will also help ensure that any lower enclosure activity, such as Google Shopping, has enough budget to capture increased online demand, where sales can usually take place on the high street.

Check the market carefully

Carefully review how your competition reacts to the evolving landscape. If some of your main competitions have gone out of PPC(Pay-Per-Click) auctions, at a lower cost per click ( CPC), you’ll be able to capture a lot of demand. Undertake this extra traffic to gather more public data, which can be used later for research and for more insights into how the world shifted during the crisis, as long as the stock rates and logistics are up to date. Review the websites of rivals. How easy are they for consumers to find details on their distribution protocols and to ensure the protection of their staff and customers?

Act in harmony as a unit

Throughout these decisions, you have to work closely with buying teams across the communications and environment to ensure that you are mindful of any problems with current as well as future stock rates. Where issues are not foreseen, trade and marketing will proceed as you please, but if stock constraints lead to long lead times or delivery times, you might be interested in slower optimizing your resources and advertising budgets, so that the traffic flow on your e-commerce website is compatible with your ability to service those customers.

While we do live with what will one day be taught in curricula all over the world, for now, we will need to take several steps to ensure that we continue to help improve the economy through these difficult times in the e-commerce retail sector wherever we can.

Leave a Reply

Your email address will not be published. Required fields are marked *