COVID-19, the highlight of the year 2020, has forever changed the ways of many businesses and customer shopping patterns. Customers who were once traditional shoppers have now resorted to digital shopping as many countries and states are on lockdown.
While certain segments of the e-commerce industry are struggling, many segments are thriving due to the growth of online shoppers. This has led to companies changing their business model completely to cater to the new audience. The technology firm Emarsys in partnership with Good Data has mapped out a graph showing the year-on-year (YoY) growth of online purchasing during the pandemic with the same period last year. In countries that have agile industries have shown growth in e-commerce while those with more traditional hierarchies are portraying a decline.
Courtesy: Emarsys in partnership with Good Data
Keeping this in mind, here are some of the trends you should be aware of in terms of e-commerce during and post COVID-19.
A RISE IN E-COMMERCE SITES FOR ESSENTIAL PRODUCTS
Traditionally, essential products have always been a factor of the retail sector, however, with enforced lockdowns and social distancing regulations, people are rapidly moving to shop for essentials online. The fastest-growing online products include disposable gloves, dried grains and rice, packaged foods, toilet paper, milk and cream, household supplies, etc. Hence companies that are in the essential product category should transition immediately into an e-retailer if it is to stay above the tide.
In Sri Lanka, a country heavily dependent on its agricultural produce saw the birth of services such as GoviFoods which directly linked farmers to end customers during the lockdown period. Within a week of operation, GoviFoods saw a ten-fold increase in orders.
UI AND UX ARE THE NEW STORE-FRONT
We’ve always known customer service is what keeps a customer returning to our store. Similarly, the same can be applied digitally. While we can no longer provide a personalised service physically, we can maintain it through excellent UI and UX. Think of the last time you browsed on Amazon; you’re shown suggested items that are similar to your previous purchases, the search on Amazon is easy to navigate through, and they remember your card details if you opt to save it. All the hassle is taken away along with a user-friendly storefront. In case you’ve decided to open up an e-commerce store, think about your customer’s journey through the store, where you want to lead them, what you can persuade them to buy, super-fast search results, and efficient payment systems.
In essence, you have to treat your online presence as if you would a physical store. Everything needs to be where it should be; there has to be a logical reason for every icon and every button.
HOW NOT TO LOSE A CUSTOMER IN 10 SECONDS
Online attention span keeps reducing every year and making it that more difficult to secure purchases online. Recent research shows that a site that takes longer than 8 seconds to load will lose its viewers by over 50%. In this context, building a site that is not only fast but also mobile responsive is crucial to secure sales in a competitive online environment. In Sri Lanka, approximately 80% of internet penetration accesses online services from their mobile devices. This is a trend seen not only in the APAC region but also in all emerging economies of the world. The ethos of e-commerce is fast shifting to be grabbed the attention early and secure purchase swiftly.
To facilitate the above, companies can rely on building sites that rank highly not only on search but also load times. Google Speed test is one tool that can be used to ajudge a site’s speed and also provide recommendations on how to fix issues that would be lagging the site.
AGILITY, AGILITY, AGILITY
The online age has given rise to a concept called agility and lean operations. Agility means the ability of a company to change direction, operational values, key competencies on a whim to meet market demands. This seems to have been exasperated by the pandemic COVID-19 as the volatility of the market has become even more unpredictable. Companies that survive and those that don’t seem to be divided by a thin line called agility. A company that relied heavily on its own delivery supply chain having to suddenly veer off course to depend on a third-party player such as Uber is a clear example. To change margins to adjust to this new reality could be hard for companies that have a more traditional approach than those that are agile as mentioned above.
Here the learning is to not be too bogged down with a company’s structures to a point where when the market changes one is not able to meet it head-on.
FROM B2B TO B2C
A massive shift that was witnessed during the pandemic, is the shift from business to business (B2B) to business to consumer (B2C). A rapid breakdown of B2B was seen during the lockdown as most supply chains and traditional consumption parts were drastically changed. In many countries, B2B companies had to almost overnight change to B2C, as most of its consumers were at home with no access to traditional supply chain parts. In Sri Lanka, most consumer brands that relied heavily on supermarket chains saw themselves opting for direct delivery or be driven down in demand. Many multinational brands started offering their portfolio directly to consumers through delivery apps and their own call centres.
This shift was crucial and will remain crucial as even in the post-COVID situation the direct access to the consumer will remain crucial to be it through traditional methods or digital. A recent study in the US found that up to 24% of consumers would not feel safe visiting a supermarket even 6 months beyond the stay-at-home order due to pandemic fears. This is the new reality that all e-commerce organisations have to face and understand that a direct link to sell your product to the customer is key.
These are some of the new realities and trends facing the e-commerce industries across the world. The key takeaway seems to be that companies need to be not bogged down by processes and red tape to meet new demanding consumer patterns and market volatility. Those who adapt will survive and those who do not will fail seems to be the mantra and a logical approach to change will see any organisation through these trying times.
