eCommerce has been without a doubt a booming industry for the past decade now. However, the world-wide pandemic going on has also had its fair share of impact on the eCommerce world. Some people might think that people staying and quarantining themselves would mean, more use of the internet and people preferring eCommerce stores as they are no longer allowed to go to physical retail shops. And even during the allowed hours they just don’t feel comfortable doing things the same way they used to.
And they won’t feel comfortable unless their regional area starts seeing a decline in the spread of the novel virus. Which many places in the world are not on the verge of achieving. Keeping the recent state of the world in mind, we here at eComscoop decided to rid you of your queries regarding eCommerce and the effects the coronavirus has had on it. So, lay back and read through as we go through ” The effect of Cocid-19 on the eCommerce world”
Increase in the overall Sales of Baby Products
Since the Pandemic has started, people have started the act of social distancing and tried to refrain from unnecessarily moving around. However, this doesn’t mean that the basic needs of the people will just go away and more so for the babies. As people can’ themselves don’t feel comfortable right now to go outside, and there are things that they need to buy when it comes to raising a little one, for instance, its pampers and other hygiene products that a little one requires. So, people in these troubling time referred themselves to ordering these necessities online which has lead to a 237% week-over-week increase and a whopping 1,197% month-over-month, as of March 30, 2020.
Food and Beverage Online orders have also seen a recent increase
What makes watching Netflix better if it isn’t for a snack. Many people whilst relaxing just quadruple the amount of fun they are having buy gulping down their favorite snack. And as people have recently found themselves with quite a lot of free time on their hand, which has lead to people wanting more snacks. And as they don’t want to order snacks online, they just order them online now. To elaborate, food and beverage eCommerce is up almost 26% MoM and 20% WoW
The Online demand for Electronics, Jewelry and Apparels are all down
As people don’ go outside as often as they used to, they have started caring less about things like Jewelry and apparel which came with a big purpose of leaving a good impression and look good. As people stay home, they have just started caring less for this stuff and feel more comfortable just being more comfortable
Down below is a recent specific stat regarding the influx of traffic in eCommerce only in the United States
A 40% increase in eCommerce revenue has been recorded in U.S.A in this state of emergency- Listrak
There are considerably more delays in shipping stuff as there were before
Many countries and companies have started prioritizing the basic need’ products over purchases like clothes. And some other stuff that are not considered as important especially whilst this world-wide Pandemic is going on. For instance, Amazon declared on March 23 that it would be prioritizing shipments of medical supplies and household staples to its warehouses But many niche stores are still offering their services and trying to reach their customers on time
A big increase in buying Groceries online
In a recent survey, it was found that nearly % of the people giving the survey had used online pickup or delivery services for their grocery needs in the past seven days. Moreover, 41% of those were using that service for the first time.
Raise of online sales of Coronvirus related products
Unfortunately, many people are using this panicked state fo people for false advertisement. Some even falsely advertise some of the stuff they are selling as medicine for curing the Coronavirus. Sounds sketchy and weird right! But this has managed to fool quite a lot of people till now. But now people are becoming more and more informed and more observant of these false advertisements
What you should do as an eCommerce in this crisis?
First of all, you should have a clear cut conversation with your manufacturer so you know the clear condition of the stuff being carried out. And so that you don’t end up disguising your clients and ruining your image. This is especially for people who do dropshipping and Affiliate Marketing, but especially Dropshipping. And if you used and still manage to make the products you sell yourself, be careful in realizing your limit and don’t end up over-committing. As this might lead to an overall bad image of your brand if you are not able to exercise the promises that you make.
You should also look for other manufacturers if you don’t actually make the products yourself. This way you won’t have to solely rely on a single supplier and you could even take in more orders. And do consider the situation of your target audience and try to make campaigns that empathizes with them in these crucial and testing times. Moreover, you could also consider offering and promoting home-based products. As people are spending more and more time at home, the overall sales of home-made products have drastically increased. So, do look into the idea of expanding that way too. Moving onto some other stats
UK saw a drop in its prices by 2.4% in May, which has been the largest price fall in it since 2006
Well, this was due to the fact that many stores realized and started seeing a sale drop soon after the Pandemic, especially stores that sold luxury foods and items. So, they decided to lower down their prices in the hope of encouraging people to shop in the same way they did before. But this strategy hasn’t really lead to the result the stores’ owners expected. As people have become more and more cautious about what they buy and eat, especially about things that are not necessary to live through this Pandemic. But lowering price during this hard-time has helped some eCommerce stores to maintain, rather see an increase in their overall sales.
Another major reason for the reduction in the price of many sectors is due to the simple economic principle of supply & demand which states that a decrease in demand of a product/service leads to a consequent decrease in the price of the product, this is seen in many countries in the example of low recent low prices of Petrol. The decrease in petrol prices started in November/December when the outbreak was only in China. As China was one of the biggest buyers of Oil, as the Pandemic struck, it stopped its usual purchase of oil, which leads to an overall decline for the demand of Oil. Which then lead to lowering the price of Oil all around the world
People are becoming more aware of eCommerce and the opportunities it offers
As people have stayed home for a while, they have started wondering how the stores that are still functional during this time manage to just that. This has people wonder as well as think of they can do what these online stores are doing too. This has lead to people searching eCommerce -related words and queries by a higher amount in the past few months. For instance, people searching the word “eCommerce” has gone up thousands of numbers just in the past few months. This can be seen illustrated in the following graph
This is not only the case for the main word like “eCommerce” but also for other words related to earning money online like ” Freelancing”. Downbelow is another graph showing yo the increase in the number of people searching up this word
As more and more people start searching for eCommerce and the things they can do with it, and the immense potential it has. The after Pandemic world will surely see a rise, even if its small, in the number of people trying to set up their presence online. Which would be better for many economies and help many people to finally get rid of the jobs, they don’t like. How would eCommerce better the economic situation of people.
Well, this is because eCommerce delivers entrepreneurship to anyone’s home who is willing to adapt and work hard. Young moms, single dads, and many other people discover the eCommerce world. This will lead to higher money being eventually earned by those people, like stay at home moms, who wouldn’t have gone out to earn money due to their housebound obligations, but can now easily work and will work in their free time online
2 in 5 UK shoppers say they will make more online purchases after lockdown ends
As many people were introduced to the comfort of online buying, they have realized how easy and undemanding this is then going to a retail store. Physically looking up products, asking questions, wasting time that could have been spent doing some better stuff and then driving or walking back home for the store that you went to. As the lockdown has forced many people to know that there is a thing like eCommerce that exists out there. Many people are impressed by the things and benefits of doing things the online way. And this has lead to many people being convinced to keep doing the stuff the way they are doing during the Pandemic even after the COVID- 19 Pandemic is over
Traditional chain stores in the US and Canada have seen an 80% year-on-year rise in online sales in April 2020
This was an expected turn of events but an 80% increase is still higher is still without a doubt a big leap. To further elaborate on this stat, here is another stat:
Covid-19 Retail Trends report, the number of first-time purchases placed through the eCommerce sites belonging to traditional chain stores grew by a whopping 119% compared to April last year.- Bluecore
Further on what you should do as a Drop Shipper/eCommerce
Like every model of commerce, dropshipping has also been affected by the Covid-19 Pandemic. There are many things you could do in these tough times to ensure that you survive and if possible, even grow. The very first thing you need to do as a dropshipping store is to communicate with your supplier. And understand the delays that your customer might possibly experience.
You should also look for other manufacturers if you don’t actually make the products yourself. This way you won’t have to solely rely on a single supplier and you could even take in more orders. And do consider the situation of your target audience. And try to make campaigns that empathize with them in these crucial and testing times. Moreover, you could also consider offering and promoting home-based products. As people are spending more and more time at home, the overall sales of home-made products have drastically increased. So, do look into the idea of expanding that way too.
You need to have to be honest and upfront with your customers.
This is a time when great customer service can very much prove an asset for your online presence. You need to inform your customers that there could be possible serious delays in delivering the things they ordered. And do especially consider the regional area of the place the item is being delivered to. And inform yourself of the relevant protocols being followed in those areas if possible. As different areas are subscribing to a different type of policies in these difficult times.
Moreover, be prepared and ready to offer refunds on their services. An excellent example of how you should proceed is the drop shipper behind “beast of eCom”. He has actually told his customers that they might encounter possible delays. And he has found that their response has been really positive up till now. As people all around the world understand that there is a Pandemic going on. And this has to lead them to be comparatively quite patient then they were before. But they do still expect you to tell them the truth. And it would be completely wrong to not do so.
Lastly, if you want to start an eCommerce store right now, the most effective & productive thing you could do right now is learning. It would be without a doubt be very hard if you’re starting off right now. But, we suggest that you learn as much as you can, and then try experimenting as much as you can. Experimenting and learning through them is always a very big part of no matter what it is that you’re doing.
Down below is a quote by Chris Wayne, who is a 6-figure Dropshipper to all of the aspiring drosphsippers
“Take this time to learn as much as you can about Dropshipping, paid advertising and also about best practices around store designs and branding. Because, once this all passes you will be in a great position to hit the ground running“
Work on your organic Social Media Channel
Youtube, Facebook, Instagram, Twitter, Pinterest, TikTok, whatever it is that you’re comfortable with. But it is better to make more than one or two. Just start doing these as this will without a doubt help you better become aware of how these platforms work and how you can raise awareness for your brand on these channels. And there are more people using these platforms as people have more time at their hand and can just relax and scroll through and learn about some new stuff coming up. Hopefully that some new stuff coming up could be you. This will eventually lead you to have a large customer base without having to spend a single penny-worth of money.
Moreover, the increase in the number of people using these applications just because of the coronavirus is also material here is a stat: A recent survey from SensorTower shows that the downloads video-sharing app TikTok surged by 315m in Q1 2020, making it the most downloaded app ever in any three-month time period. To elaborate, this was just 187m downloads in Q1 2019
You can also experiment on Social media to validate your business ideas, an example of this was displayed by drop shippers: Cory & Rodney, who created different Instagram accounts and took count of which Instagram accounts in which niches were getting the most traction. This was nonetheless a time-consuming process. But it does cost nothing but time, which many people have plenty of nowadays. This is just an example of the experiments that you can do yourself and learn from.
Another marketing strategy worth looking into is setting up email marketing campaigns. Based on the data from 2018, it was ranked the most effective marketing channel !!. Surprising, right? you might be wondering why. Well, this is probably due to the sheer number of people using emails as data from 2017 shows that about 85% of adult internet users have an email. This is more than the search engine’s percentage by 15% and social media’s by 22%.
So, Without a doubt, email marketing is immense potential and importance in the business world. To further elaborate, here is another fact about email marketing, According to the Direct Marketing Association, you get $40 for every $1 that you spend on email marketing. Which is a fantastic return on investment and something that you rarely see with other platforms? If you want to know more about email marketing, we have a great article written on just that so do give it a look if you’re interested, “All You Need To Know About Email Marketing
Dropshippers often tend to overlook email marketing tactics because it doesn’t come with instantaneous responses and results like the one that Facebook adds have. But, it email marketing is a very powerful tool as we discussed above. And most of all it’s free
Writing Blog-posts and SEO your site
Writing Blog posts not only help you more about your niche and establish authority. But it also helps you better interact with your potential clientele more and more often. Moreover, search engine optimization can also make a hell of a difference. It can help you greatly improve your organic traffic and get more and more traction as you grow. In case you don’t know what search engine optimization ( SEO ) is, here is a review
And SEO writing is basically writing your articles in such a way that search engines like google, yahoo, and Bing show them in its first few pages. This ultimately secures more impressions and traffic for the website which is something that every website desires.
A further authentication of this is the fact that according to SEO tribunal, 93% of online experiences begin from a search engine. This is why most of all website owners, no matter what kind of content they run, want to be noticed by search engines. And the only way that is possible is through search engine optimization. Which is a very important aspect and many website owners realize this. This is so important that the website owners hire special people for this specific task. If you want to know a bit more about what SEO is we have an article written on that. So go check it out “breaking down SEO writing“
If you have time you should surely do your research on about how to optimize your store. And most of all both of these require just time and hard work, which if you do, will give you an everlasting benefit as an eCommerce platform.
Some blogs and Youtube channels we suggest to help you learn
There are a lot of blogs & Youtube channels out there that provide a lot of free value for free. And these platforms do without a doubt provide some good value. Some of the blogs that you could follow to become more informed are Neilpatel. and backlinko , and one of our personal favorites is the youtube channel of income school. Neil Patel and Backlinko also have their own Youtube channels that you can check, so be sure to give them a look too
You can also try earning some extra bucks through platforms like Fiverr and Upwork to earn some extra money. You can sell your services here in a creative way to earn money. For instance, you could help transcribe videos into texts, you could do some graphic design and even translate stuff if you know more than just English. This will help you get a pool of money whenever you are ready to launch your own business.
2020’s been a hard year for everyone, let’s just hope we can get over with this Pandemic as soon as possible. Hopefully, this article was helpful in informing you about the impact CoronaVirus is having on the eCommerce world. And also guide you as to what you should be doing as an eCommerce store to survive and thrive. Do let us know how you liked this article and feel free to ask any related questions that you might have