Amidst the COVID-19 pandemic, many business spheres are witnessing fast and dramatic shifts. We are now in the middle of changes that not long ago were predicted to happen only in the next few decades.
The retail industry also tries to adjust to the new reality. In the middle of a transformation, more and more companies are turning to eCommerce, shutting down their brick-and-mortar stores.
What does the future hold for eCommerce?
Let’s find out!
Book a free consultation with our top expert and learn how to survive the crisis.
How the eCommerce Industry Reacts to COVID-19
Coronavirus greatly impacted customer behavior and offline commerce. Even big retailers like Apple admit that the physical merchandising model is no longer working. As shoppers minimize the time that they spend outdoors, businesses are forced to shut down their offline locations. The change is inevitable and, in some countries, forced by local anti-coronavirus regulations. In the USA alone, more than 110 retailers have shut down their local stores and continue developing businesses online
At the same time, the situation for online commerce has changed also. According to Quantum Metric, online sales have increased 52% compared with the time period a year ago. COVID-19 forces more people to turn to online stores. Due to this, the number of online shoppers has increased by 8.8%.
While the increase is obvious, not all spheres of eCommerce are witnessing growth. Customers tend to buy necessities, like health, safety, and pharma products right now, while luxury product sales are declining.
General Mills Inc., Tyson Foods Inc., Campbell Soup Co., and Kraft Heinz Co. reported sales growth between 10% and 20% during four weeks before March 8. Customers are also actively buying so-called comfort food. Popcorn sales grew 48%, pretzels are up 47% and potato chips see growth at 30% as compared to the data from the last year.
There is no doubt that the scene of retail has changed dramatically and many businesses are struggling to adjust.
Tips for Sellers to Survive the Coronavirus Pandemic
The companies that are not selling online are in a difficult situation and forced to either fully shut down their operations or take a 180-degree turn to online commerce.
COVID-19 is not the time to stay idle. It is time for bold business decisions.
Here are a few tips that can help you further advance your retail business during the pandemic:
- Move to eCommerce – if you have not already made the move, right now is the best time to establish an online presence and cater to the needs of customers at the medium where they are shopping now.
- Invest in the future – while we are witnessing a huge migration to online, the companies that decided to make a move are not just trying to survive. They are investing in their prosperous future, as online popularity is unlikely to drop in the foreseeable future significantly after the COVID-19 pandemic is over.
- Nurture customer trust and loyalty – product shortage often leads to prices spikes. While this might seem like a great business decision, participation in such operations decreases customer trust. Building customer loyalty today is so important today as it has never been before.
The current situation with the pandemic clearly showed that businesses without an online presence wouldn’t survive in the future. After the coronavirus has subsided, it will take some time for shoppers to return to previous habits. Even more, some experts say that the retail industry has changed forever, and there is no going back to old ways.
