The ongoing pandemic has changed almost every part of our day to day lives, and most businesses have been dealt a huge blow. Lots of companies are now trying to survive as well as to adapt to the new reality. E-commerce has emerged to be key, and the businesses that invest ambitiously are the most likely to come out as leaders post-pandemic.
The rise of SaaS eCommerce platforms such as Shopify is powering more than 1 million online stores has lowered the entry barrier for e-Commerce, with many businesses now embracing the new normal. Today, we look at some smart Coronavirus adaptations that will determine the future for e-Commerce.
Mapping New Market Opportunities
The coronavirus pandemic has greatly shifted buying behaviors. As we all saw at the start of the lockdown, household products were exhausted in some markets. Due to the change in demand, some eCommerce sellers have adapted by changing what they serve. They have added medical supplies, soaps, and other hygiene products, DIY or self-care products, etc. Even some restaurants started delivering cleaning supplies alongside their food!
Searching for Alternative Suppliers
The supply chain has been largely disrupted by the coronavirus. This started early on as most businesses source their products from China. The disruption in the country led to inventory shortages, and although China has slowly been returning to business as usual, many businesses still have their sources in other overseas countries.
Such has therefore led to the need for local suppliers. Although onshoring can be expensive, eCommerce stores need to keep their businesses afloat and customers satisfied. Having multiple suppliers has therefore proven key to reducing risk.
Drawing a Strategic Plan
To turn a tragedy into success, you will need always need a good plan. The coronavirus pandemic has prompted businesses to create a crisis plan and response. The first consideration has been minimizing risk and then how to take advantage of the current behaviors and needs. A long term is then drafted as analysts expect the eCommerce growth to outlast the pandemic.
Innovation
The fact that the ongoing crisis has changed our social lives has forced businesses to find creative ways on how to cater to the needs of their customers. This underlines innovation as one of the key factors of success in the business field, as it helps solve problems more conveniently.
An example is Cheeky Food Events, an Australian company that offers corporate team-building activities oriented around cooking. The company has had to change their business model to suit staying at home.
To continue operating, they now offer a distributed service where they safely deliver ingredients to a two-course gourmet meal and dessert to employee homes. The employees can then carry out their team bonding by cooking with a live web stream of a chef.
Being Smart about PPC Advertising
PPC advertising is a major source of income for Google and platforms such as Facebook. The ongoing crisis has however seen the revenue from paid ads go down significantly. Facebook ads, in particular, have seen a decrease in revenue as sectors such as retail, travel, entertainment, etc. have stopped paying for clicks. According to analysts, such industries account for 30% to 45% of Facebook’s total ad revenue.
Businesses that operate in such sectors have reduced their expenditure, with some laying off workers, and others are shutting down completely. However, companies operating in industries such as health and medical, business management, finance, on-demand media, gifts, personal care, etc. have increased their ad expenditure, a smart advertising move.
Prioritizing Customer Relationships
For the businesses that are in operation, customer service is one of the key areas to invest in at the moment. This is because there are many eCommerce options right now, and experts say that a customer who has bought something during the pandemic will likely buy again post-pandemic.
Apart from that, customers now have more time to tweet and write reviews, and any negative feedback can really hurt an eCommerce business. This has seen businesses invest in the general hallmarks of good customer service that include honesty, speed, and clarity. One of the most prevalent moves has been setting up chatbot systems.
Creating Undeniable Loyalty Programs
The fact that eCommerce is flourishing has created the need to ensure that businesses retain their customers, and this has led to the creation of powerful, data-driven loyalty programs. These range from improving customer service for example by extending return dates, to staying close with your customers, with every effort aimed towards rewarding customers to keep them coming back.
Strategy is Key
The ongoing pandemic has greatly disrupted the economy, and this has led to decreased valuations and increased market fluidity. Ecommerce is now key for businesses to thrive, and to keep customers satisfied. But to quote to Amit Ray, “every challenge comes with rainbows and lights to conquer it.”
