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How Coronavirus is Affecting the World of E-Commerce

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, 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, 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 due 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 economic state on the whole. However, they still disagree that there will be any major impact. Around 60% of people believe that there’ll be some impact, 22% of people believe that there’ll be a significant impact and around 20 % believe there’ll be a minor impact.

You May Read: Tips to Make Ecommerce Website Conversion Funnel Effective

Conversions on Time-Taking Delivery Items

These days’ customers expect faster delivery and often choose products that arrive 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 customers 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.

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Shortage of Inventory

If you recently went to a grocery store, you might have come across empty shelves. With more individuals buying supplies, hoarding necessities 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 this 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 a negative image. They’ll have to deal with serious reputation management after this pandemic gets over.

You May Read: Things to Consider Before Starting an Ecommerce Business

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 issues can make it difficult to produce&deliver physical products, which will negatively impact profits. However, you can reduce the blow by marketing virtual products they have to offer. Virtual products have 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 cutting costs, and usually your marketing or advertising budget is the first thing to consider. But do not completely cut on prospecting as you will need to invest more resources and time in these areas when the situation will return to normal.

To begin with 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 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!

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