After about nine months of grappling with the severe impact of COVID-19, economies across the world are slowly reopening. While this is a much-welcomed change, the impact of COVID-19 wasn't just biological, it has had a significant effect on consumer behavior, consequently affecting both ecommerce and brick and mortar enterprises. So, now that things are slowly going back to what we are used to; what does this mean for businesses? Should you change your ecommerce strategy post-COVID-19 to accommodate changing consumer behavior? Read on to find out.
Here is the effect Covid-19 has had on consumers, and what the changes mean to businesses, especially ecommerce models:
Black swan events tend to alter the trajectory of history in ways no one ever saw coming. In 2020-2004, for instance, the SARS pandemic catalyzed the growth of ecommerce and led to the birth of giants like Ali Baba as businesses saw the need to find alternative ways to reach consumers.
Fast-forward to 2020; the COVID-19 pandemic has further magnified the need for businesses to have an online presence as consumers now prefer to do their shopping online. For instance, there was a 14% increase in ecommerce sales between March 23 and March 30. Now, almost six months later, the trend is still on, with ecommerce spending reportedly increasing by 30%.
If you are in ecommerce, we've got even better news for you. Despite things going back to normal, a majority of consumers will reportedly stick to online shopping. According to a PYMNT survey, about 52% of consumers stated they'd continue shopping for groceries online. A separate survey echoes the same sentiments as about 58% of online shoppers in the US claimed they'd continue to shop online to curb their exposure to Covid-19.
What's more, this change in consumer behavior isn't just restricted to the US. It's a global paradigm shift. For instance, a study shows that about 60% of European consumers plan on staying committed to ecommerce post-COVID-19. What this means is that although brick and mortar stores will remain a staple in the business world, ecommerce will be the way to go for every enterprise that survives the pandemic.
The result? There will be increased sales as more consumers will continue to order even just the bare minimum online. At the same time, there will be increased competition in the ecommerce space as more businesses continue to create an online presence. As a result, existing ecommerce businesses will indeed need to change their ecommerce strategies post-COVID-19 to increase visibility and maintain a competitive edge.
The COVID-19 pandemic saw nearly 100,000 SMEs close indefinitely as social distancing and self-quarantine restrictions were enforced countrywide. This saw about 22 million Americans file for unemployment, while others packed up and left major cities. Even though things are slowly easing into the new normal, most consumers still feel vulnerable as they're yet to bounce back financially.
As a result, they're more responsive towards and inclined to work with empathetic and transparent brands. Now more than ever, ecommerce businesses need not only to show their current and prospective customers they recognize their hardships but also prove their empathy. This means changing the brand voice and actions to align with compassion and transparency.
For instance, during this year's St. Patrick celebrations, Guinness did not urge its consumers to go into pubs or form celebratory gatherings as it usually does. The brand instead encouraged consumers to stay safe and be kind to each other. It also preached cohesion by reminding consumers of how strong they are when they stick together. Earlier this year, the brand also offered 1.5 million euros in support of communities affected by the pandemic in Ireland.
We've all been witnesses to how bad a pandemic can get. As of writing, there have been over 27 million confirmed COVID-19 deaths, and although we're slowly adjusting, we still face the uncertainty of not knowing what the future holds as a vaccine is yet to be found. Thanks to this, consumers will continue to take their health more seriously and will prioritize businesses that go the extra mile to safeguard it.
Ecommerce businesses must change their strategies post-COVID-19 and incorporate incentives that appeal to the new wave of health-conscious consumers. They'll continue to shop online but will be more motivated to work with ecommerce retailers who offer safe shipping, delivery, and payment options.
Even though we're in the reopening phase, COVID-19 has changed the world as we used to know it and the changes in consumer behavior highlighted above are sufficient proof. So, yes, ecommerce businesses do have to change their strategies post Covid-19. However, change is never easy. That is why you should outsource order fulfillment to a reliable, and experienced partner like RSL. This will allow you to channel your focus towards making the changes necessary to help you meet changing consumer behavior and expectations.
March 7, 2023
Cash flow and profitability are critical organizational goals here's how your 3PL and transportation solutions can help you get there.
January 31, 2023
There are certain ways through which you can stay organized and keep track of everything without consuming much energy and time.