Be it the economic recessions or much-dreaded pandemic; these black swan episodes are changing the entire course of businesses. With Covid-19, at its all-time high, the early signs of consumer behavior shifting can be palpable.
While remote working is garnering much importance, the profitability of a majority of businesses, such as airlines and more, is getting adversely impacted. However, this pandemic seemingly has enough potential to change how consumers shop, consume information and even their regards towards how businesses work.
Irrespective of how much leaders avoid getting into the trap, the fact is that the instant economic stop by this virus is going to lead to a global recession in 2020 and for a few more upcoming years. However, the magnitude of the impact may seem entirely different from the online sector.
The most important question right now is how Covid-19 is impacting the eCommerce business? And, what will happen once all of this gets over? Let’s find out in this post.
With lockdowns, brick-and-mortar retailers are facing a harsh reality, considering that the government has enforced quarantine and restricted outdoor trips. With eCommerce, on the other hand, shipping and supply challenges are persisting.
A survey conducted by February Re-Hub in China states that Chinese consumers are expecting this situation for at least the next four months. Adding to it, 6 people in 10 claimed that they might end up spending more on consumer products in the forthcoming months as compared to the last year.
All the forecasts regarding eCommerce sales hike across the world in 2020 and upcoming years are likely to alter substantially.
The world is facing a severe lockdown currently. With only a few people out on the roads, the number of those who have isolated themselves is increasing day-by-day, fortunately. As a result, housebound consumers across the globe are turning towards online groceries for their essential supply.
As per Carrefour, a French retailer, the delivery of vegetables has increased by 600%. Not just that, but a Chinese retailer has also reported a 251% increase in the online grocery sale during the initial 10-days between late January and early February.
Owing to issues with supply-chain during this quarantine period, the online sales of the smartphones is expected to decrease by more than 20% in the Q1 2020 of China. And, if talking about the global drop, there a major hit of 5% is expected.
Even Apple, a smartphone giant, is concerned about not being able to meet the objectives for Q1, considering the disruption to its supply across Asia.
All doesn’t seem stormed amid this epidemic. Although the disease is contagious, however, it is simultaneously compelling innovators to come up with revolutionary ideas. Now is the time when a lot of companies, including a handful of them in China, are experimenting with robots, drones, and automation for delivering products.
It is of course tough time for certain businesses, like a travel website design company or tour operators, but pumping up some creativity and innovative ideas will certainly help them to survive.
Considering the need to minimize physical contact, this idea, if executed well, can create a contactless resolution and prevent significant losses in this sector. With this idea, there seems to be potential for companies that are looking forward to developing such technologies that can work seamlessly in a public environment.
Since authorities, both medical and governmental, have been urging people to maintain adequate hygiene and not to touch their faces for obvious reasons, people are listening. And, that is one of the major reasons why people are running behind protective products, including gloves, sanitizers, masks, and much more.
Where the offline retailers are having a tough time fulfilling mass demand, millennials are choosing to order these products online; helping eCommerce portals acquire a surge in revenue. As per the recent analysis by Adobe, the eCommerce purchase of these virus protection products has increased by 817%. Besides this, the fact that people are going berserk over toilet paper has increased the online sale of the same by 186%.
Researchers, across the globe, are urging people to self-quarantine themselves the moment they feel minor symptoms of Covid-19. With this engraved in their minds, a majority of the US consumers are also stocking up their medicines as a precaution in case they catch the symptom.
By analyzing the eCommerce transactions, Adobe found out that the medicines sale for cough, flu, and cold have gone up 198% high.
As far as pain relievers are concerned, their purchase has increased up to 152%. In such instances, a medical website design company can come to your rescue and help you develop a feature rich website to leverage the most out of this situation.
It has been long since global supply chains are preparing to keep the expected quality consistent while concurrently lowering down the costs at each step. For most companies, it has resulted in a substantial risk as far as geographies are concerned.
For instance, China shutting down its operations because of Covid-19 has made the business environment even tougher. What the world needs today is an amalgamation of coordinated, distributed and trackable supply of products across the world while maintaining the demand at the same time.
In such a scenario, those who have been actively using sophisticated technologies, like IoT, robotics, blockchain and more will have to be more cautious. This will also have a positive impact on the adoption of delivery drones and alike products as the demand for eCommerce delivery will outstrip the present condition.
The expectations, in this regard, are majorly on Alibaba and Amazon that may step up and take the ownership of an urbane supply chain in the upcoming decade.
There is no denying the fact that the outbreak of coronavirus is going to leave a substantial void for business owners. So, cut to the time when all of this is over, are eCommerce development services providers still going to experiment at the same level?
The chances for the same seem quite bright. Consumers can expect an increase in rich, relevant content, virtual reality (VR) and augmented reality (AR) as these will be experimented at their best by marketers. Apart from that, the world might also come across more novel and creative channels and digital innovations to keep the online shopping streams alive.
Undeniably, the pandemic of Covid-19 has sent an appalling shockwave to the global economy; not to forget, thousands of families will be affected. In the current scenario, it is crucial for companies, whether offline or online, to make sure that their associates are safe and healthy.
If looked at it from a long-term perspective, the coronavirus has irreversibly changed the method of business and how they are going to compete and run for the next decade. In the end, eCommerce firms and wordpress development service providers that will choose to capitalize based on these fundamental changes will see a surge; but the ones that won’t adopt the new ways will be hit.
In the end, both the individuals as well as the business world are hoping that the right preventive measures are being taken and that the medical researchers find a cure or vaccine as soon as possible.