RETAIL BUSINESSES: COVID-19 – A RETAIL CATASTROPHE?
Where it was expected that retail businesses would expect an inventory shortage and production delay during the crisis, the whole situation is turning sideways. Do you wonder how it is happening? Well, the current COVID-19 scene has made people get stuff from online retailers instead of visiting the market. And this approach is helping both vendors and online buyers.
A majority of physical retail stores have smartly switched to the online e-commerce platforms for efficient sales. In this way they are attracting people to buy stuff and get it delivered at your doorstep.
A RETAIL CATASTROPHE?
This COVID-19 pandemic has bend the retail business on its knee. Where approximately 15,000 potential retail store closures were reported this year, e-commerce retail business is sky-rocketing the sales. From necessary items to fashion and cool accessories, online retail businesses are making big funds. The pandemic outbreak is truly turning out to benefit online retail business in unprecedented ways. They are saving more by paying less to the employees due to the reduced amount of staff they have for their online services. Some of the e-commerce stores even have made modifications to their employee benefit policies.
For the people who are living a quarantine life these days, shopping has been their most favorite hobby to follow. The pandemic has made people get into unnecessary shopping stuff that they can get and spend their time wisely.
Regardless of the perceived impact of the COVID-19 pandemic, the conversation between the vendor and buyer should be clear. And for that purpose, advertising and promotion of your online retail business holds an important aspect. The average Ad spend for e-commerce stores doubled from $4.8 million to $9.6 million during this pandemic crisis.
THE BEHAVIORAL CHANGE
During the lockdown situation around the world, there is big change noticed in the customer behavior. From the shopping habits to the customer help care center, people are sacred to make purchases. Where half of the people are going on an online shopping spree, others are restricting their expenses to the essentials only. Food, groceries, health and wellness products are the most necessary items that are being purchased across the world. And the growth in conversion arte is highly benefiting the retail business. It is also boosting online engagement by being more responsive to marketing and promotional messages, including those from social media channels and email campaigns.
In addition to that, retail business are expecting to experience an inventory shortage and production delay due to the crisis which can affect their sales. So they better work on fueling that up to cater to the people at their doorsteps. And with such things, comes a major concern for customers to face an uncertain future for both themselves and the brands they patronize.
THE CHANGES NOTICED IN THE SUPPLY CHAIN
During these COVID-19 lockdown days, you cannot avail any travelling services. With airports shutting down due to the global outbreak, shipping and logistics are also becoming a challenge for the retail businesses. The major concerns in the shipping and logistics industry is deploy advanced safety measure for the warehouse workers. All international shipments are currently on hold so if you have ordered something from China or Europe, you will not be able to get them soon till the pandemic is over. This is because shipments from all around the world are dwindled significantly and logistics services companies are focusing on limiting the pandemic’s negative effects. The retail businesses are also trying to source an ideal mix of online and offline services. Managers and senior authorities are renewing their focus on efficiency and risk management for the betterment of the citizens.
WHAT’S NEXT FOR E-COMMERCE RETAIL BUSINESS?
Where some businesses are spending less, e-commerce retail business is the one that is generating more money. With the terrible pandemic outbreak, e-commerce retail business is the only one progressing. And this is because online buyers are showing more interest in making online purchases. However, with the growth rate, they have to come up a strong strategy that requires the customer to adapt to the ongoing unpredictability of the situation. Small e-commerce can also generate more profit if they start capitalizing on the situation and in this way, customers can find them easily.
You must not forget a strong online presence is vital in this period where the risks are giving a tough competition to rising business opportunities. And for an outstanding performance, your retail business should also invest in online marketing tactics, including content marketing, social media marketing, and SEO. All you need is the right mindset and an agile approach and you can transform some serious threats into opportunities that can give you a big exposure.
For more updates related to COVID and e-commerce retail business, feel free to visit Shopifyninja. You can also find similar blogs to build a better understanding about the Pandemic.