During the pandemic, eCommerce sales have managed to capture 19% of overall retail sales; compared to 12% on average the past two years. Indeed, eCommerce is emerging as a key pillar in the global fight against COVID-19. On looking closer, you realize that for the last 10 years, eCommerce has been increasing worldwide by approximately 20% each year. While due to Covid-19 restrictions prohibiting brick-and-mortar retail, online shopping is experiencing significant growth and has poised global expansion, where it increased 6% traffic between January and March alone.
On the other hand, online platform has helped in preserving jobs during the crisis. For instance, for many restaurants or retail outlets, that have had to close during the economic freeze, online delivery services have become a lifeline.
It goes without saying, eCommerce is creating new economic opportunities.
But above all, one question remains intact, that is your chimney safe for Santa this year?
Well, it could be a moot point before the pandemic, but now due to this sudden change eCommerce game has changed forever. Sadly, due to the ongoing pandemic, the best of the supply-demand forecasts have gone out the window, and every brand no matter how large or small is simply trying to adapt and respond.
Being DIGITAL is the new NORM for every business!
Benefits of embracing online identity for your business
It is no more a secret that eCommerce will drive festive season 2020, and will help businesses to win their charm back. However, when you look at the other side of the story, then yes, there have been gigantic economic disruptions due to the coronavirus pandemic, where companies were forced to shut down or face the brunt of no physical footfall on their stores.
But eCommerce led a revolution to combat this hurdle, where it not just helped in serving the needs of the customers but also secured employment for many workers. This gradually helped and still helping every business across the globe to find stability and provide means to earn and grow.
The sudden shutdown of most physical stores, plus the sharp decline in demands from the users, contributed to the precipitous drop. In such a disturbing situation, where challenges were knocking at the doorstep of every business out there, digital platform showed a ray of light, and let the vendors shift their business model to an online platform. This is going to help them survive after all this is over and carve a new path forward.
Here are a few points that can help businesses to shape their revenue model with eCommerce this year.
Explore new markets
The digital shift experienced by the businesses will blur the traditional B2B and B2C prospects. It helps businesses to make their products available in smaller quantities or cater to demand for all kinds of buyers. This enables us to increase the supply-demand and bring the new market into existence.
Stock up products that will sell well!
In the normal situation, it is obvious for the businesses to stock the in-demand products, that can range bread cutter to luggage. Nut when it comes to COVID-19, then brands need to re-think their strategy and shift their inventory. As unnecessary items can consume cash, hence it is mandatory to offload declining product categories.
This enables businesses to free up as much cash tied to this slow-moving inventory as possible. And with this move, businesses can embrace significant liquidity to adapt to the pandemic.
They can stock up on goods that are selling well now, and halting poor sellers and high-value items that are profitable but take ages to sell. Needless to mention but this helps your business to boost its profit-sharing funnel to new heights.
Balance supply and demand
For a business to run smoothly, there has to be a balanced approach between supply and demand, and COVID has created a huge gap between these two factors. With the ongoing chaos of virus, there has been a visible slowdown in manufacturing and restocking, and issues with moving freight. With the eCommerce platform, your retail business can create a balance between supply and demand and lead to business growth and mitigate risks.
Understanding buying behaviors
COVID-19 had triggered panic buying initially, which led many retailers to fill their stocks with unnecessary items, that could not be sold instantly. As people are being at home now, businesses can capitalize on new buying trends with eCommerce. The constant monitoring of social channels and paying attention to users’ behavior through AI technology, will open new doors to your business.
Indeed, coronavirus has created long-term changes to e-commerce businesses. Now it all depends on your agile movement to pick the most out of the room and increase profits during this festive season. So grab the chance and bring our business online with a scalable app solution.
We are here to help you nimble and increase profits. Get in touch with us, and redefine your revenue channel this festive season.4