Insights from Our Experts
eCommerce will boom post COVID-19
eCommerce in a way has turned out to be a savior for retail businesses across the globe during the COVID-19, with businesses closing down and people practicing social distancing, it has become nearly impossible to do business as usual. eCommerce is possibly the best solution we have not just to survive, but also an opportunity to do business better than in the pre-COVID times. There has been a surge in the movement of essential goods via the online retail space, and a drop in luxury and non-essential items. Retailers must realign their business strategies with time to stay relevant, and sustain during the distress to reap what lies ahead in the post-pandemic days.
eCommerce and the great online migration
The pandemic has pushed people inside their homes, and they are doing pretty much everything right from work, college, watching movies, shopping, etc online. People are making online purchases more frequently for the products that they bought from a store. There has been a consequential shift in the attitude towards online shopping, earlier it used to be a matter of convenience and choice. But the present situation has forced consumers and retailers to make this shift to online. As we are dealing with stores shut, cash flow problems, and disrupted supply chains, it wouldn't be wrong to say that we are in the midst of a retail nightmare. The provision to operate business 24/7, an expanded online customer base with demand are some of the reasons why moving to eCommerce is a wise business decision to make. If the trends are to be believed, this change in shopping habits will have a lasting impact even beyond the COVID-19 days.
Consumers will not trade safety for experience anytime soon
It's highly unlikely that people will flock to malls or go out to their favorite restaurants anytime soon. Slowly as the restrictions on movement and doing business ease things will not be going back to normal, but to the trending "new normal". Consumers will feel secure doing purchases from the safety of their homes until a vaccine is in place. As per the survey by Morning Consult, 24% of the people are not comfortable about visiting a mall for the next six months, the customers are naturally motivated to do shopping online. An investment in the eCommerce platform will be timely and lucrative for both the short and long run.
eCommerce efficiency will keep the momentum in favor
There has been a surge in the number of businesses moving online, and customers will look for great value at the cost of affordability. Businesses like Groupon and Airbnb made its entry into the market during the 2008 recession and offered premium services at a very affordable cost, and the rest is history. The efficiency of the eCommerce service will be the make or break factor. The online retail space was already crowded, and with this, the competition has become edgier, retailers must look at the technologies of Artificial Intelligence and Machine Learning to improve upon the services they provide. The AI/ML technology will help eCommerce platforms to provide personalized services and saving costs while generating revenues.
It's no doubt that there will be a greater online presence of people, and a great chunk of the demand from the brick and mortar shops has shifted online and retailers have a great opportunity in eCommerce to tap that demand and turn the situation in their favor.