Covid-19 pandemic has forced businesses in every industry to change their operating model. With large and small companies having to overhaul their strategies and even giving stuff for free to keep their customers engaged. But there are few companies that haven’t been impacted, like: eCommerce. Some brands are reporting sales similar to Black Friday, as quarantined consumers continue spending more and more online for exercise equipment, kitchenware, athleisure and health supplements.
So, is eCommerce the Way to go?
ECommerce, the largest problem has been interference to supply chains and distribution centres. The pandemic has proven the vulnerabilities in production and transport. Commerce brands have had to introduce severe measures to make certain they can address inventory levels, while also adapting to an unstable supply chain.
But this isn’t just for one sector, it has affected all sectors equal, from apparel, toys and food, to healthcare and technology. In the short term, sourcing the vital resources to meet changing demands (home gymnasium equipment, puzzles and board games, to the notorious toilet paper) has proved to be impossible. In the long term, manufacturing operations have to end up locally, and investment should be in automation and predictive technologies. But for now, we need to adapt, respond and be successful.
However, the recent upward push in unemployment, a broader monetary downturn, and delivery chain disruption (as previously mentioned), has B2B sellers cautious and much less positive on eCommerce sales. Buyers confidence dropped 48% in March 2020. What should you do? If you have an eCommerce company, how can you make sure that you’re prepared? Should you have excess inventory? If you don’t own an eCommerce company, should you start one? Perhaps this is the right time.
The Heart of a Business’ Digital Transformation
eCommerce is the heart of a business’ digital transformation for lots of reasons, certainly one of them is because it allows you to work remotely easily, under the new normality. Today, we have greater state-of-the-art collaboration tools and companies are better placed to respond to an occasion of this nature. You don’t need to have a physical store that you have to open at certain times every day with a group of workers attending clients, cleaning, etc. Now you could do it digitally and save money.
Of course, selling online has its challenges. You need to have employee conversation plans in place. Additionally, you want to rethink your networking with new partners and brands. You need to change the way you do business, to look for new trends, meet new contacts and foster relationships to succeed.
What to do with the Inventory?
Breaks in the supply chain are the most significant risks and impact in eCommerce, especially right now. Many brands nowadays manufacture goods in Asia, the most heavily hit area by coronavirus to date.
Although many brands have planning models to have three to six months of available inventory primarily based on forecasts. As the virus spreads the true effect of manufacturing suspensions or decreased production will not be fully realised until replenishments are expected and cannot be delivered.
The company’s best response will be to carry excess inventory, but not everyone can afford it. The next best response is to team up locally. Depending on your product or service, you can find providers in your area that help meet demand. In addition to helping local producers, you can acquire new partners, new ideas and new businesses.
An example of local team effort is the eCommerce site Noon.com, which recently partnered with The Dubai Mall to open an online marketplace that allows the mall’s more than 1,300 retail stores to sell their products.
Customer Satisfaction
Before the pandemic, purchases were multi-channel. Brands with a single distribution channel have had to review their disaster recovery plans in contingency for a fulfilment centre shutdown. You need to have multiple channels and diversify to be able to respond more flexibly to crises.
Brands need to take this time to define messaging to customers should fulfilment delays or maybe the inability to fulfil. Strategize with your teams on whether you want to accept orders for places with delivery restrictions or if you will prevent the purchase completely, clearly communicating this to consumers early in the buying process. Don’t be afraid to say no. We know that selling is selling and we all need the money to keep our businesses afloat. But sometimes, the best strategy is to stop for a moment to assess the current situation and your business and what suits you best. Remember that the most important thing and what customers value the most is transparency. Especially now that people spend more time online, you can’t expose your business to bad reviews, criticism, or negative mentions on social media.
The pandemic has caused endless challenges for supply chains, warehousing and fulfilment logistics inside eCommerce, and has underlined the importance of dealing with heightened demand in times of uncertainty. But it has additionally been a sign to key decision makers on the need to fully embrace eCommerce.
How to Get Started in Ecommerce
Whether you want to venture into an eCommerce business or already have your own physical store and want to go digital to face this crisis. You probably have a lot of questions: What platform to use? How to distribute? How to promote myself? and many others. The recommendation is to go online and research what consumers want and are looking for. These insights can also help you to know how to communicate to your audience and how to promote your site.
If you don’t want to venture alone, currently a lot of eCommerce companies are extending free trials and offering major discounts for people to learn how to sell products online. If you are concerned about distribution, there are plenty of eCommerce service providers, like third-party logistics companies offering free trials and discounts. As well as, ad costs on Facebook and Google are more affordable than before.
Now is the Time…
If you’re on the path to starting your own eCommerce business, it’s essential to look at current data to investigate which category you should really focus on. History has proven that recessions are the base upon which fortunes can be made. These days, eCommerce may be that foundation, especially now that we have all the tools we need to begin.
Contact us for a free consultation. We can help you to rapid digitalize your business to respond to this situation in under 40 days. We can offer you marketing services at a competitive price so that your business moves forward.