How Covid-19 Is Impacting eCommerce Business?
How Covid-19 Is Impacting eCommerce Business?
Nowadays economic recessions or much apprehension pandemic; these black swan occurrences are changing the entire life cycle of business. During the time of Covid-19 across the globe, It's all time high, the early signs of consumer buying behavior shifting can be noticeable.
During these days remote working or work from home is increasing and that will be the profitability of a majority of businesses, some business like airlines, Hotels are getting lost during this time. However, this pandemic has enough potential to change shopping behavior of consumers, information and even their regards towards business.
Regardless of how much leaders avoid getting into this trap, the fact is that the entire economy stopped this virus and it will lead to a global recession in 2020 and also for a few upcoming years. However, the impact of this situation is different from the online sector.
Today the most important question is how Covid-19 is impacting the ecommerce business ? Let’s go through this post to see what happens once all of this gets over ?
Increase Demand Of Online Grocery Stores :
The entire world is facing a tough time during the current Lock-down situation where only few people move out on roads, more people are being isolated themselves and that number will be increasing day-by-day, fortunately. As a result of this situation, consumers across the globe are turning towards online groceries to get their essential needs.
Carrefour, A French retailer found that the delivery of vegetables has increased by 600%. Also Chinese retailers have also reported a 271% increase in online grocery sales during the Chinese New Year period.
E-Commerce Face Shift and Significant Challenges :
During the lockdown situation, Retailers are facing bleak reality, By considering that the government declared quarantine and made restrictions on outdoor trips. With eCommerce, on the other side the challenges of supply and shipping.
A survey conducted by February Re-Hub in China states that people from China are expecting this situation for at least the next four months. Also 6 out of 10 people claimed that they might be spending more on consumer products in upcoming months as compared to last year.
All the forecasts regarding e-commerce hike across the globe in 2020 and upcoming years.
Major Hit on the Smartphone Delivery:
The current supply chain system during this quarantine period, the online sales of mobile phones is expected to decrease by more than 20% in the quarter 1 2020 of china. And, if you are talking about the global crisis then it will be hit by 5% expected.
Also Apple/iPhone, a smartphone giant, is concerned about not being able to meet the target of Q1 2020, by considering the disruption to its supply across Asian market.
A Ray of Innovation Amid Epidemic:
All doesn’t appear stormed amid this epidemic. Though the illness is contagious, However, it is at the same time attractive innovators to come up with innovative ideas. It is a better time for lots of companies, including China, to experiment with drones, robots and automation for delivery of products to the customer.
It is also a tough time for some businesses like Airlines, Tour operators, manufacturing industry but pushing up some creative ideas and innovation will help them to survive during the current situation.
Covid-19 spread by physical contact so by considering this everyone needs to minimize physical contact. If we execute this idea well, we can create a contact-less resolution and which can help businesses to prevent significant loss. This idea will lead for many companies to develop such a kind of technology which can work seamlessly in a public environment.
Hike in Virus Protection Products :
Medical institutes and government have been asking people to maintain cleanliness, Maintain sufficient hygiene and not to touch their faces for some reasons, People are listening and following it. And, that is one of the major reasons why people are running for buying gloves, sanitizers, masks and much for protective products.
There is a tough time for offline retailers to fulfill high demand for products so people are choosing to order these products online and helping ecommerce stores to get revenue. Recent survey by Adobe, the eCommerce purchase of virus protection products increased by 817% and sale of toilet paper increased by 186%.
The Stock for Online Medicines:
Medical institutes and the government have been asking people to self-quarantine themselves the time they feel minor symptoms of Covid-19. US consumers are stocking up their medicine once they feel minor symptoms as a precautionary step.
In the eCommerce transaction, Adobe found that some medicines for cough, flu, and cold have increased by 198%, Purchase of Painkillers by 152%. In this case WebSite Design Company can help you to develop a rich website to come out with this situation.
Does the eCommerce Industry Go to Experiment Post Covid-19?
There is no doubt that an outbreak of corona virus is going to leave a considerable void for business owners. Is it a good time to use ecommerce development services providers still going to experiment at the same level ?
The chances for a similar appear quite bright. Customers will expect a rise in made, relevant content, VR and AR as they are going to be experimented at their best by marketers. In addition to that, the world might also come across more novel and innovative channels and digital innovation will keep the online shopping channel alive.
The Combination of Irrepressible Environment and Supply Chains:
Currently the whole world is struggling to keep the supply chain with consistent quality while lowering down the cost at each step. Most of the companies are having substantial risk as far as geographic concerned.
Currently, India, China or any other country shutting down their operations because of Covid-19 has made the business environment very tough. Today the world needs a combination of coordinated, distributed and traceable products to meet the demand at the same time.
In Current situation, those who are using technologies like IoT, Robotics, Block Chain and more will have to be more vigilant. There is also a positive impact on the adoption of delivery drones and like products as the demand of eCommerce delivery will transcend the present condition.
Alibaba and Amazon may step up and take ownership of a refined supply chain in the upcoming future.
The World after the Pandemic:
Definitely, the pandemic of Covid-19 has created a seismic wave to the global economy and thousands of families will be affected. In the current situation, It is very crucial for companies, No matter offline or online, to make sure that their associates, Employees are safe and healthy.
If we see the long term perspective, the corona virus has changed the method of business and how they are going to sustain and run their business for next decade. At the end, eCommerce companies and Magento Development Service providers that will choose to take an advantage based on these elementary changes will see a growth; but the business who won’t adopt the new ways to be hit.
Last, Both a person as well as the business world are hoping to get the right precautionary measures are being taken and the medical or researchers find a medicine or vaccine as soon as possible.
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