E-commerce has surprisingly flourished despite the Covid-19 crisis leaving the global economy beyond repair. If it does get back to its feet, it will take a long time. According to Digital Commerce 360, since the beginning of the pandemic, there’s a 36% increase in consumers shopping online, compared to 28% pre-pandemic. Although the market continues to be concentrated, it is not something that you should worry. if you have ever considered launching an e-commerce business, now is the best time to take advantage of it.
E-commerce – A Trend
As we all have witnessed in the past months, the pandemic has reshaped the global economy and our way of living, giving way to new ideas and trends, but perhaps the biggest of them all may be e-commerce. E-commerce has been up and running even before Covid-19, but the pandemic has accelerated its growth by half a decade. Categories that are greatly in demand, which skyrocketed alongside the booming e-commerce industry, are groceries and home improvement. Apparel, on the other hand, notably declined.
The Fall of Brick and Mortar Stores
Malls and department stores are hurting as a result of lockdowns due to Covid-19. Well-known brands in the apparel and fashion categories are being forced to shut down and, worse, file for bankruptcy. Despite having a stronghold in the industry for decades, Mark Cohen, former Sears Canada CEO, says, “The mall-based department store is in its last stages.”
It is no further to the truth that the pandemic has left no industry untouched. Global retail sales decreased by 54.5%, and travel sales dropped to 44.7%. Many experts say that the travel industry will take three years to fully recover from its loss. With travelers canceling their trips or staying at home, the automotive industry’s sales dropped to 80% just in China due to the vehicles’ less movement during lockdowns.
For the first time since 1980, Walmart closed its stores on Thanksgiving. Other retailers had also shut their doors, including Kohl’s, Best Buy, and Dick’s Sporting Goods. However, the pandemic’s wrath has pushed Walmart to price its service $98 per year that includes grocery deliveries, an excellent strategy launched in mid-pandemic that sets the enterprise apart from Amazon.
E-commerce and Covid-19
For the past few months, the big and small businesses had a hard time operating due to merchandising and shipping concerns caused by Covid-19. On the other end of the spectrum, the shipment industry had opened its doors for more than 175,000 new employees. In June 2020, e-commerce has rapidly increased its sales in the US up to 76%, reaching up to $73.2 billion in just a month. High-demand products, such as groceries, toiletries, and food deliveries, have influenced the growth of the e-commerce industry.
At 12.2% growth for new online customers, from ages 65 and older, indeed, many people have shifted to e-commerce shopping for the first time. Click and mortar stores are expected to only grow more and will experience a long-term high and steady trajectory in post-Covid19.
How New Businesses Can Take Advantage
The global economy may have plummeted due to the pandemic, but it has also presented new opportunities. If you are planning to launch an e-commerce business, the impact will largely depend on your industry. According to the 2020 Ecommerce Paid Search Report, there are “400 million dollars ad spend from 400+ industry-leading brands”. The statistics have confirmed that many have launched their e-commerce businesses in between the Covid-19 era, proving that it is lucrative and a success.
Studying your niche and your competitors can be a smart and informed decision for your strategy, but it is also essential to learn how other industries are doing business. In this period, wholesale and retail enterprises generally have underperformed. Those brick and mortar businesses that we’re able to shift their transactions online have seen and experienced online sales growth. Finding an equilibrium between e-commerce and direct-to-consumer e-commerce is a strategy that most brands implement to create success during the Covid-19 era.
2) Optimizing Your Channels
Paid and organic research can transform your e-commerce business into a competitive and industry-leading force. This strategy has showcased e-commerce businesses, big and small, a tremendous impact on sales and visibility.
3) Mobile Payment Solutions
Restaurants and retailer businesses are testing the waters on a cashless payment that will no longer require cashiers, creating more efficient self-checkout options, and driving more comprehensive e-commerce customer support services. Walmart’s touch-free payment scheme is akin to Apple Pay – making the mobile payment transactions another trend that increased dominantly due to the pandemic.
A recent survey conducted by Salesforce Research, with 3,558 participants, have shown that most people won’t be returning to brick and mortar business until a vaccine is available to keep themselves safe. This is an amazing opportunity for those eyeing to launch an e-commerce business since online shoppers had increased to 68% throughout 2020 just in the US alone.
The global economic downfall, fluctuations, and unpredictability will become detrimental to our personal lives in the coming years and impact different industries and countries. E-commerce businesses shall figure new marketing strategies, form innovative ideas, and maintain e-commerce customer support services to expand. Those brands that will see the most success will be those who will explore and experiment with what will work for their products and services instead of those trying to follow the footsteps of the industry’s standard practices.
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