Last Updated on September 9, 2020 by MoneyVisual
Currently, there are several unknowns. How far this infection of COVID-19 will spread, how is the market going to respond, and what will be the impact of this pandemic worldwide. Although no one knows what is going to happen, yet the below predictions will give an idea to the sellers of what they should expect. Get your ecommerce responsive website designed with us.
Change in Demand & Revenue
Due to the current crisis, a lot of retailers are expecting a downturn in the economy. However, a research shows that e-commerce businesses are currently experiencing an increase of around 50% weekly in their conversion rates as compared to last year. This might increase the demand as more customers are opting for online shopping. More people are avoiding in-store shopping sue to this pandemic.
Decline in Customer Confidence
A lot of retailers are concerned about customer confidence. This indicates the optimism degree about their self-financial condition as well as the economy state on the whole. However that still disagree that there will any major impact. Around 60% people believe that there’ll be some impact, 22% people believe that there’ll be significant impact and around 20 % believe there’ll be minor impact.
Conversions on Time-Taking Delivery Items
These days’ customers expect faster delivery and often choose products that arrives fastest. Though inventory demands and delays in shipping have made it difficult for even e-commerce giants to keep up with this promise. This means customer’s shopping online will convert on the items they need even if it has longer delivery time, in order to avoid going to the shops physically.
Shortage of Inventory
If you recently went to a grocery store, you might have come across empty shelves. With more individuals buying supplies, hoarding necessaries and food items, several industries are running out of inventory. More number of sellers are expecting delays in production and they expect scantiness in inventory throughout this year. It is a situation that they had never anticipated.
Issues of Supply Chain
Among several challenges that retailers who sell online are currently facing is related to supply-chain which ultimately results in delays in shipment, labour shortages and technical glitches. Retailers are prioritizing shipments depending on the most essential products such as health and medicinal, baby products, household, personal care & beauty, grocery items etc. are delivered first and then the other items. Several retailers were asked about the actions they’ll take during these crisis and they said contingency planning and supply chain communication will be their top actions.
Strict Imposition of Rules & Regulations
Strict laws are enforced on false adverting and price gouging. The retailers who follow such practices are not only penalized but they’ll also have to face negative image. They’ll have to deal with serious reputation management after this pandemic get over.
How to Protect Your Online Business During this Pandemic
Here are some tips to protect your ecommerce business during this pandemic
1. Be Transparent and Tactful
E-commerce businesses can follow transparency by addressing common customer frustrations publicly like delays in delivery, out-of-stock items, & internal sanitation practices. They can also provide additional pieces of training to customer service representatives on how to handle coronavirus inquiries.
2. Do Not Over Communicate
Communication is very much essential during this critical time, though focus on important points and do not over communicate. Over communication about irrelevant things is as harmful as not saying anything at all, so share something relevant and positive and that’s all.
3. Virtual Products
Supply chain issuescan make it difficult to produce&deliver physical products, which will negatively impact profits. However, you can reduce the blow by marketing virtual products they you have to offer. Virtual products has no barriers. Apart from very obvious gifts cards, e-books, tutorials, classes are also very good options- all you need to do is get creative.
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4. Keep Advertising
If your sales are falling, you can look forward to cut costs, and usually your marketing or advertising budget is first thing to consider. But do not completely cut on prospecting as you will need to invest more resources and time on these areas when situation will return to normal.
To begin with a focus on customers by establishing deeper connections with them. While it will be difficult to bring in new customers at this time find ways to engage with your regular and valued customers and to recapture the lapsed ones and keep advertising.
5. Build Trust
All the things mentioned have one common thing: They build trust. Keep customers’ informed about shortages in items and improve the supply chain in order to maintain inventory. This situation is rapidly changing and it is still too soon to know what to exactly expect & how to prepare.
But if e-commerce businesses put their customers at the forefront, it will guide their decisions successfully. If you are looking for a digital marketing agency in London, get in touch with us today!