E-commerce is a flourishing industry that has gotten a lot of attention around the world long before the coronavirus arrived. However, the pandemic has brought with it a slew of new challenges, as well as uncertainty and dread. Because of the virus’s infectious nature, consumers’ lifestyles have shifted from social interaction to social isolation. Every single person makes every effort to prevent touch and adhere to a strict hygiene regimen. We shall soon see how businesses are performed on online selling platforms as a result of these adjustments.
People are ordering online rather than visiting stores and outlets, as consumer behavior is fast changing. On the other hand, there is a group of people who will not purchase anything at all. It is to reduce the risk of infection by avoiding all interaction with the outside world. Furthermore, people will only spend on basics and will have little desire to invest beyond that. It has both advantages and disadvantages.
As a result, COVID-19 will impact the E-commerce business in both positive and bad ways. So let’s get started and see who will come out on top.
COVID-19’S POSITIVE EFFECTS ON THE E-COMMERCE BUSINESS
1. Turn adversity into opportunity: E-commerce businesses have suffered as a result of shutdown and restrictions. Companies can take advantage of the opportunity to compensate for this and grow by fast changing their online selling sites to supply all of the requirements and serve to a wider range of clients and markets. It may also assist the company in achieving higher levels of involvement in the future.
2. Increased screen time: It is common knowledge that people’s screen time has increased tremendously, implying that they have more access to and exposure to online selling sites. People will be shown products available online more frequently as their screen time increases. As a result, their shopping gene will be activated. This type of conduct can benefit e-commerce businesses by increasing orders and, ultimately, earnings.
3. Fear of taking a risk:
Despite the loosening of the lockdown, many are still wary of walking out and coming into contact with others. As a result, businesses should rethink their approach to online marketplaces. People can avoid unnecessary touch with the outside world and thereby limit the risk of infection by ordering online.
4. W.H.O has set a variety of safety standards and processes to prevent the virus from infecting people. At various phases of their operations, such as picking, packaging, and shipping, order processing services must assure compliance with these requirements. Every order must be wrapped and dispatched with the utmost care and cleanliness. In the future, it will also deliver a breakthrough in customer and supplier safety.
5. Companies that have a viable and adaptable fleet management service or ecommerce fulfillment service will gain greatly because they will not need a massive amount of people, resources, or cash to deal with packaging and paying warehouse rent. To deal with human and resource shortages, many fulfillment and fleet management firms are developing technological alternatives.
COVID-19’S NEGATIVE IMPLICATIONS ON THE E-COMMERCE INDUSTRY
#1. Demand and supply chains are staggered: COVID-19 has harmed the whole logistical chain of the E-commerce business, including both demand and supply chains. Due to income shocks and limits, demand has decreased. The supply chain, on the other hand, has been harmed by a global shortage of production or manufacturing.
#2. People movement restrictions: The majority of the product in the warehouse did not travel to the clients due to restrictions on people’s physical movement, including delivery executives. As a result, the cost of storing items in a warehouse increased, and company revenue was delayed.
#3. Staffing and resource shortages: With a scarcity of workers in the sector, it’s tough to meet all of the previous requests. As a result, order processing services may be able to save the sector and, with the help of technology, assist in resolving the staffing crisis. Furthermore, businesses are finding it difficult to cover operating costs such as warehouse rent, employee compensation, and so on. In this case, technology can assist in lowering costs and ensuring economies of scale.
#4. Most services have been shut down as a result of the COVID-19 lockdown, and the global supply chain and logistics industry has come to a halt. In the short term, this blockade has had negative consequences for E-commerce. Here are a few examples:
#5. Online selling sites suffered a setback as a result of government advice to deliver only basic commodities such as groceries and medical supplies, as they were unable to run their order processing service smoothly. Other aspects of the website were overlooked, resulting in a loss of revenue for E-commerce businesses.
The majority of businesses’ performance will be determined by their ability to comprehend consumer behavior and adapt their methods accordingly.
Finally, in the COVID-19 and post COVID-19 worlds, the E-commerce business will not have a net positive impact. However, when E-commerce and online selling sites adapt their logistics, online processing services, and the complete chain of picking and shipping, they will be better positioned than brick and mortar establishments.