COVID-19 impacted E-commerce business

How COVID-19 have impacted the E-commerce business?

In spite of the Coronavirus pandemic, the e-commerce sector seems to have an uptrending sales graph. Several statistics show that the industry seems to be in pretty great shape even though there are lockdowns imposed across several nations. People, at present, cannot visit the brick and mortar stores, instead, they turn to these eCommerce or online shopping sites for all their needs. They feel safer to order online via e-commerce clone apps when compared to visiting the stores.

On the other hand, many stores that did not have an online portal or app have shifted to online stores due to the outbreak. They do not want to miss out on their sales or lose their loyal customers. So, they have turned to online apps for yielding profit and sustaining in the market. Below-specified are a few stats that will prove the fact that the ecommerce industry is doing well in the pandemic season:

  • The revenue of the online retail industry in the US has increased to 68% in the month of April 2020 from 49% in the month of January 2020.
  • In the US and Canada, there has been a 129% increase in ecommerce orders, and overall, there has been a 146% spike in orders in the month of April 2020.
  • The online conversion rates have increased by 8.8% in the month of February 2020.
  • Around 72% of the consumers are using mobile phones to place ecommerce orders during the pandemic season.

There are certain products that have increased and decreased in terms of their week-over-week (WoW) and month-over-month (MoM) sales. Let us take a look at those products:

  • Baby products – It has an increased WoW sales of 237% in the lockdown period and a 1,197% spike in its MoM sales in the month of March 2020.
  • Food and beverages – This sector has had a 26% and 20% increase in its MoM and WoW sales.
  • Toys and games – Surprisingly, the toys and games section had a 54% downtrend in its MoM sales, whereas a 93% spike in its WoW sales. This sector has had a mixed sales ratio in the pandemic period.
  • Apart from these sections, the apparel, jewelry, and electronics sections are all in a downward trend, at present.

Few eCommerce trends that are prevalent now:

New stores that have taken their business online:

Due to the Coronavirus pandemic, it is evident that multiple vendors who did not have an online app to date have started providing online services. The Listrak report states that there has been a 40% increase in the revenue of the ecommerce industry since the US imposed several restrictions amid COVID-19. Since multiple stores are shut down in the nation, people prefer buying their essentials and other needs via online apps.

Reduced items in the inventory due to demand:

Since people are staying indoors for a few months now, the demand for several products has increased by a higher ratio. This has led to multiple obstructions in the supply chain. Store owners are urging manufacturers to supply more items that are required by customers in this period. This has also led to pausing a few ecommerce orders by categorizing it. For instance, Amazon and Flipkart have temporarily paused the delivery of non-essential items and are concentrating more on delivering the essential needs that users need. Once the lockdown is over and it is safe, they will resume their full-fledged services.

Including additional products to online stores:

Many online shopping sites and apps have included necessary items to their online stores in order to cater to the people in this hour of need. Products such as sanitizers, masks, self-care products, and more are added to the app. At present, people are in need of these items on a daily basis and for their safety purposes. Therefore, many stores have stepped up, and are helping people in their region effectively.

Increased purchase of groceries online:

Due to social distancing and concerning their safety, people have opted to purchase groceries via online ecommerce platforms. They find it easy, safe, convenient, and an effective way to curb the spread of the deadly virus. Post the pandemic; it has been known from a survey that 41% of people have started using online grocery apps for the first time. All this led to increased buying of groceries from online stores.

Lowered barriers to sell online:

In a way of lending a helping hand to retailers, many shopping apps and websites have lowered their eligibility criteria to sell products via their apps. This has helped many vendors who have taken their business online post the outbreak season.

sell online

How to adapt effectively to mitigate the Coronavirus impact?

If you are a store owner, then the below-specified factors will help you sustain in the pandemic period and maintain a steady sales record.

Talk to your manufacturers:

Since the demand for certain products is high, you can contact your supplier or manufacturer and urge them to manufacture and supply more products to your store. Give them an idea of the demand that you are facing and the impact that you have on your business. Plan accordingly, and satisfy your customer needs on time.

Look for alternative suppliers:

If your current manufacturer or supplier does not agree to fulfill the increased demand or does not have the proper means or tools to do so, then you can get in touch with other suppliers who are ready to supply products to you. This way, you can stock up your inventory, and you will not run out of supplies to serve your customers.

Know the needs of your customers:

It is always important to know what your customer requires from you. This will help you succeed in satisfying them and turning them into loyal customers. They will lean towards your brand and recommend it to others if you get to know their needs and provide accordingly. Take a survey or an evaluation to better understand their needs. From the result of the survey, you will get to know how to take your business to them and sustain it in the market as the users’ favorite brand.

Concentrate on entertaining products for people at home:

One of the crucial impacts of the Coronavirus pandemic is that people are staying in their homes for a long period now. Analyze what they can do to spend their time effectively  and without getting bored at home. Sell games, art kits, board games, and more via your ecommerce clone app. People are in need of these products as they are at home, and this will be an entertaining method to spend time with family and friends.

Adapt new sales channels:

In this pandemic season, you have to increase your online presence in order to spike your sales. You can use social media channels and other online channels to establish your brand to more users in the market.

Update all your product pages:

When you have entered the online selling industry, you have to understand that you need to keep all your product pages updated. You can upload photos and videos of the products in order to provide a more optimized view to your customers.

Invest in PPC advertising:

If you are selling a product or item that people require in their day to day life or an item that will be needed in the outbreak season, then investing in PPC advertising would be a wise choice. This will help you generate more traffic towards your app or site.

Introduce special offers:

The economy has gone down in the Coronavirus period, and so there are layoffs, a reduction in salaries, and more. So, rolling out new offers in your shopping sites will help them purchase their needs at discounted prices.

Wrapping up:

With this elaborate information, you can purchase the right e-commerce clone script, and customize it to fit all your business needs. Take your business online in this pandemic period and sustain your sales ratio. Talk to the best developers in town and get their help in building an efficient online platform for your business.

Also Read – How far will AR take e-Commerce?

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