Can e-Commerce Business Beat the Strain of COVID-19?

COVID – 19 has been the largest ‘black swan’ events of our times. It’s not too soon to say that the COVID-19 global pandemic will probably be one of the defining events of 2020 and it will have some serious implications. The situation is promptly changing. Restaurants, hotels, bars, gyms, movie theaters etc. have shut down. Many office workers are facing new challenges of working remotely full time.

In this period of isolation and uncertainty there have been changes in the shopping behaviors. There has been a lockdown, nonessential businesses have been ordered to close. Majority of people are purchasing only the essential products.
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What E-commerce Sellers can expect during the Pandemic?

Some marketing experts predict that e-commerce sales will increase as COVID-19 infections rise. Social distancing has become a standard practice and more people choose or have to stay home.

However, sellers aren’t so hopeful. They think that their sales will actually decline because of supply chain issues, product shortages, shipping delays and the possibility of drop in demand as the economy fluctuates.

Let us discuss about what sellers can expect during this unstable time, tips form e-commerce experts on how to protect your online business and make the most of this time by staying connected with your customers.

There are tons of unknowns right now: how far the coronavirus will transmit, how the market will react and what the overall effect of the pandemic will be around the world. In spite of the fact that nobody really knows what will happen, the following predictions will give sellers a thought of what to expect.

·         eCommerce faces shift and serious challenges: With lock downs, physical retailers are confronting a harsh reality, considering that the government has enforced quarantine and confined outdoor trips. With eCommerce on the other hand is facing challenges related to shipping and supply.

All the forecasts regarding eCommerce sales hike across the world in 2020 and upcoming years will likely see a considerable change.

·         Rise of online grocery stores: Currently the world is facing a severe lock down. With just a couple of individuals out on the streets, the number of people who have isolated themselves is increasing day-by-day. Therefore, housebound buyers over the globe are turning towards online food supplies for their essential supply.

According to Carrefour, a French Retailer, the delivery of vegetables has increased by 600%. A Chinese retailer has likewise revealed a 251% expansion in the online grocery sale.

·         Major hit on smartphones industry sector: Industry forecasts assume that global smartphone production will be hit hard as a result of the outbreak of COVID – 19 that began in December 2019.

China, the smartphone manufacturing hub of the world, is now struggling from suppliers, workers and logistic networks. Production of smartphones has been decreased rapidly.

Apple recently announced that it doesn’t expect to meet its second quarter financial guidance due to slowed down production in China. Most of Apple’s retail stores in China stay shut.

Samsung, which moved much of its production to Vietnam in recent years, is also facing production delays of Samsung’s latest models.

·         A ray of innovation: Although the COVID – 19 Disease is contagious, however it is at the same time convincing innovators to come up with revolutionary ideas. This is the time when a lot of companies including some of them in China, are experimenting with robots, drones and automation for delivering products.

It is a tough time for certain businesses like travel companies or tour operators etc. Pumping up some creativity and innovative ideas will surely help them to survive.

Considering the need to limit physical contact, this idea if implemented well can make a contact less resolution and avert significant losses. There seems to be prospective for companies that are looking forward to develop such technologies that can work consistently in a public environment.

·         Successful rise in Virus Protection Products: Both medical and governmental authorities have been urging people to maintain sufficient hygiene and not to touch their faces for obvious reasons. People are following the instructions and using the protective products like gloves, sanitizers, masks and more.

Offline retailers are having a tough time fulfilling mass demand, customers are also choosing to order these products online which is helping eCommerce portals to acquire a growth in revenue. As per the recent analysis, the eCommerce purchase of these virus protection products has increased by 817%.

·         Stock for online medicines: Researchers and Governments across the globe are urging people to self-quarantine themselves. A majority of the consumers are stocking up their medicines.

By analyzing the eCommerce transactions, it was found out that the medicines sale for cough, flu and cold have gone up 198% high.

·         Supply Chains: It has been long since worldwide stock chains are preparing to keep the expected quality and supply chains consistent.

What the world needs today is a mixture of coordinated, distributed and track able supply of products across the world.

·         Inventory shortages: If you’ve been to a grocery store recently, you would have encountered empty shelves. With more individuals purchasing food and supplies and hoarding necessities, various industries are dealing with inventory shortages.

According to a survey, forty four percent of the sellers say that they expect production delays and 40% expect inventory shortages throughout 2020.

·         Strict enforcement of rules and regulations: Many e-commerce sellers have committed price gouging and false marketing. It has prompted marketplaces like Amazon and eBay to remove millions of items and even suspend or ban some of its sellers. Laws related to price gouging and false advertising vary from state to state. Some sellers are taking advantage of panicked consumers, law makers and the authorities are taking strict actions against them.

Sellers who are penalized for such practices will not only affect them in the short term but also in the long run as they will have a negative image among consumers and have to deal with serious brand reputation management when this will pass.

·         World after pandemic: Certainly, the pandemic of COVID – 19 has sent a horrifying shock wave to the worldwide economy, not to overlook, thousands of families will be affected. In the current scenario, it is significant for companies, whether offline or online, to make sure that their associates are healthy and safe.

If we look at it from a long-term point of view, corona virus has changed the method of business. eCommerce firms and service providers who will choose to capitalize based on these fundamental changes will see a rush but the ones who won’t adopt the new ways will be hit.

In the end, both individuals and the business world are hoping that the correct preventive measures are being taken and medical researchers/specialists discover a cure or vaccine as soon as possible.