The New Normal for businesses in COVID 19 times

 
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When COVID 19 first began in the early months of 2020, not many would have considered it to be the single most defining moment of our generation; and yet here it is, stronger than ever a whole year later. COVID 19 has not just impacted who we are and how we will be in the future. It has also impacted how we think the future will now actually be. In the early months of 2020, people started fearing COVID 19 as something fast, sudden, and life-threatening. Little thought was given to the business side of things because the time frame of the virus and its impact on society was not fully disclosed.

As months and months of a global lockdown followed, business owners started awakening to the innumerable damage and havoc that COVID 19 would play on the bottom line for 2020 and the following years. The ones who were willing to adapt to a whole new way of functioning also awoke to the many different possibilities that the virus was bringing to their business.

Brick and mortar stores which sold almost everything under the sun from a storefront or a shop to a specific locality have only just realized that the world is now their true marketplace thanks to the advent of E-commerce and online shopping as a medium of being able to reach a larger and more eclectic gathering of prospective customers. Slowly and surely E-commerce has shifted in its designation as the "new kid on the block" to the mainstay of mass retail habits and it largely has the most dreaded occurrence of our time; COVID 19 to be thankful for. In our earlier blog titled “The COVID 19 Impact on E-commerce, Social Media, Digital Marketing, and Online Shopping” we spoke in detail about how there was an immediate and impactful shift from offline to online. In this particular blog, we have the advantage of perspective gathered over the last year to truly understand what makes E-commerce and online shopping the new reality for businesses that have shown the courage to adapt to the changes brought on by COVID 19.

Positive and Negative Effects of COVID 19 on E-commerce

The Positives

The fundamental positives for E-commerce businesses and online stores are that people are largely following social distancing guidelines to the letter and hence are avoiding leaving their homes and gathering like before at crowded areas like supermarkets and physical stores to get both their daily essentials as well as their retail fixes. People from healthcare products, apparel, beauty products, books, to groceries, every online business is gaining traction in the market. Any business that has seen the need to adapt from offline to online by investing in E-commerce and website development is also seeing today the possibilities of earning a good amount of profit.

Another noteworthy positive impact of COVID 19 especially on third-party online marketplaces is that they have managed to outperform E-commerce companies. This indicates that wholly digital business models have been more resilient to the current crisis. If you take a closer look at the sales trends of 2020, E-commerce companies have seen a decline in their sales, while nearly 60% of third-party marketplaces have noted increases in their sales figures. Third-party marketplaces have also successfully onboarded new sellers on their websites and close to 60% of third-party marketplaces have experienced a sharp rise in the number of new buyers as well.

COVID 19 has also highlighted the trend towards the greater need to use social media in an effort to promote growth in sales through E-commerce websites and online stores. Several shifts in consumption patterns have also come to the forefront, driven by the need for sourcing essential items. Social media and E-commerce shops tend to become important sales channels for larger E-commerce companies. Both these channels have witnessed high growth rates since the beginning of the COVID 19 outbreak.

Going online to buy everything that you could possibly need soon became a trend when consumers began to realize that online shopping was no longer an option but almost the only way in which they could purchase just about anything in what was understood to be relatively the safest way of making a purchase. Groceries pharmaceuticals, health and hygiene products, restaurant delivery, as well as financial services, are the sales categories that saw the largest increases in the COVID 19 crisis through third-party online marketplaces. 

The Negatives

It is fairly obvious to understand that where any particular sector or industry sees such a sudden upturn in sales figures, there will also be the logistical challenges that will come with those heightened numbers. These challenges when not addressed immediately could lead to massive roadblocks and stifling of the business. The E-commerce industry is no different and they too faced a whole host of challenges during the initial months of the COVID 19 outbreak.

Due to all the possible restrictions that were in place to stem the tide of COVID 19, E-commerce and online stores faced issues with supply chain management, acute product shortages, pick up and drive-up logistical support, the general pressure to meet a sudden surge in demand and of course fulfilling earlier mentioned sales promises such as same-day deliveries.

Why E-commerce thrives when Offline does not

It would be an understatement to say that COVID 19 has been exceptionally challenging for businesses worldwide. However, it has highlighted the special role that E-commerce can play to help subvert the retail aspect of the crisis both in ongoing times and beyond. In a post COVID 19 world, the unparalleled growth of E-commerce businesses will disrupt national and geographical retail frameworks. It will also significantly impact international trade fundamentals thereby presenting a unique opportunity for growth both domestically and internationally.

With work from home becoming the new normal in the time of the pandemic, prospective customers are also automatically spending more time online. This has led to an increased sense of visibility for online stores and an equal increase in receptivity. This same trend can also be seen on a global scale, with E-commerce businesses in the US poised to grow by 18%, whilst in Asia, the number of consumers planning to shop online has rocketed from 17% to 50%.

It also is important to understand that online shopping for both essentials and retail therapy has gone on to become as popular as it has in the past year because of people's hesitance to actually step out of their houses and shop physically. Even with restrictions easing up in between the first and second waves in different places globally, consumers have shown a preference to shop online thanks to the relative safety, convenience, and even the deals and discounts on offer making the E-commerce model far more sustainable than a physical shop front. Research from GlobalWebIndex indicates how nearly half of global consumers are showing no immediate intention to get back to physical shopping practices.

Online stores and E-commerce businesses have also upped their game even in the time of the pandemic to be able to serve what is an ever-growing customer base thanks to the restrictions in place for physical shopping. This has once again led to a boom across the tech industry with online businesses employing more efficient processes with regards to things like QR and barcode scanning, same-day delivery processes, curb side pickups, no-touch interactions, improved and easy payment methods, and systems and so much more. Even online businesses have tried to adapt to a more gadget-friendly environment with most E-commerce companies focussing heavily on mobile-first design approaches for their websites and online store mediums.

Judging by the trends of late 2020 and early 2021 globally, it would be safe to assume that end consumers would prefer to increasingly prioritize safety measures alongside creature comforts such as convenience and stability when they choose to partake in either an essential or retail shopping experience. To its great advantage, E-commerce online stores are the only medium of business so far invented which has the potential to give consumers these services and solutions in the manner in which they desire them. Taking your once physical business online is now the priority simply because shopping trends have been put through a cycle of forced evolution thanks to COVID 19 and the opportunities are here right now for online businesses who are ready and prepared to adapt.

Starting and Sustaining an Online Business during COVID 19

While all the numbers and figures are leading you towards assuming that an E-commerce business today is the best place to be invested in, COVID 19 with its many surprises continues to play a game changer especially when you least expect it to. The changing retail and shopping landscape is evolving constantly in trying to keep up with shopper expectations and demands during the pandemic and a sustainable business model in the online space seems to be the need of the hour.  This is why we thought we could help you with some basic tips and tricks to start up and then sustain your very own E-commerce online shopping business should you choose to be in the online retail space, and with an estimated 2.14 billion global digital buyers in 2021 why wouldn’t you want to be.

Starting Costs

These will be significant, and a huge portion will go towards setting up your online storefront. For platforms, we would suggest setting up on WooCommerce to begin with. WooCommerce is an E-commerce platform where you can set up your online store, whether it be for dropshipping or selling your own product.   

Marketing Costs

Digital marketing as a medium is keeping up with the same pace that E-commerce is setting with regards to online purchasing and sales. And with the impact of COVID 19, it would also be safe to assume that money for a large-scale marketing budget may be a little tighter than usual. So, instead of running paid ads immediately on platforms like Facebook, consider organically building the reach of your online store on equally popular social media platforms such as Instagram and Tik Tok.

Focus on the Present

It is important to focus on the present simply because making sales is important in the time of COVID 19. There needs to be some sort of cash flow that continues to come into your online business if it is going to take advantage of the current boom in E-commerce popularity. Being able to sell products including healthcare, groceries, essentials, etc will only help in getting the virtual cash registers ringing and allowing for the business to grow and thrive.

Devote Time

Thanks to the restrictions that COVID 19 has placed on everyday social life and even work from home methods, the one thing that you may suddenly have a little extra off would be your time. Be prepared to devote a considerable amount of time to your E-commerce business so that you can study and learn the trends that are evolving so quickly even as you read this.

Set Small Realistic Goals

Having big dreams for your E-commerce business and setting smaller and more manageable goals for it can be two very different things. Setting smaller but more realistic goals at the time of beginning makes the process a little easier and even more encouraging as you start the journey of growing and scaling your online business.

Our last bit of advice to you would be to try and learn all the different facets of your business, but still trust the experts to help them come to fruition. There will be several functions and aspects of your online business that you may not be best equipped to learn quickly enough and then handle. However, outsourcing these tasks to trained and proficient industry experts will help you save on time and money apart from giving your E-commerce online store a more professional edge. This is an edge that will separate you from the competition whether you are operating during prevailing COVID 19 times or then one day in the future when the pandemic will be downsized to a more manageable level.

AmareSol Global is a digital business consultancy creating innovative change through a team of talented designers, developers, and strategists creating digital experiences for brands and companies around the world. We are continuously fueling growth across constantly changing and advancing digital landscapes, by seeking and formulating newer and better ways to service clientele on a global scale across industries. Look up more about us at www.amaresolglobal.com.

 
 
 
AmareSol GlobalSEO, Social Media, Digital Marketing, Web Design, Online Business, E-commerce, Brand Design1 Comment