Covid-19 and E-Commerce

COVID-19 and E-commerce

While the whole world goes into isolation due to coronavirus, most people now spend time at home with their families and this greatly affects the state of most industries. Many enterprises are idle and do not work, restaurants and cafes are closing, most of the studios are postponed to late dates for filming films and TV shows. All this greatly affects the economy and most businesses now rely on the fact that the world situation with isolation will end as quickly as possible and they will again be able to slowly restore what they have lost. The e-commerce industry is no exception, and now we look at how coronavirus has affected e-commerce.

Sales growth

Despite the fact that retail sales are now rapidly falling due to the closure of stores, online sales are experiencing a noticeable increase in the number of sales, which in turn leads to a noticeable increase in conversion. Now, many Internet users say that for the time of isolation they completely abandon the usual way of shopping and completely switch to online shopping. But, against the background of a sharp jump in sales and profits, there is a slight nuance. The jump is mainly closely related to basic necessities, such as food, hygiene products and medicines, but sellers who sell goods of other categories report a sharp drop in sales, due to the fact that people try not to spend money on unnecessary things at the moment.

Problems with delivery

We all love it when the product that we ordered comes to us very quickly. Buyers often choose a product that arrives at them as quickly as possible. We can assume that fast and high-quality delivery is one of the pillars of e-commerce and many sellers and online stores try to polish the delivery process to a shine. However, in such a difficult time, even giants like Amazon begin to have difficulties in delivery. Against the background of the closure of some enterprises, interruptions in the supply of goods and their stocks in warehouses begin. Also, delivery services amid increased demand for the delivery of not only goods to customers, but also essential goods for those who are helpless at the moment, are beginning to experience heavy loads on logistics. All this entails increasing delivery times, but during the quarantine period it has already been noticed that people are now quietly ready to wait a little longer than usual.

COVID-19 and E-commerce

Limitations and Prohibitions

Let's look at this situation and take Amazon as an example. It would seem that this is a real machine for selling goods online, the sales mechanism of which works like a clock. But, recently Amazon faced a huge load on its warehouses, system failures and a simple shortage of workers. This turn of events forced the Amazon leadership to take rather stringent measures and limit the delivery of goods to their warehouses by categories and priorities. At the moment, preference is given to food, medicines, and household goods. This decision also affected sellers who use Amazon warehouses to store their goods and are now experiencing some inconveniences. From delays in the shipment of goods, to the complete non-acceptance of goods to the warehouse.

Speculation

In such difficult times, when everyone needs to unite and help each other, there will always be those who want to capitalize on the situation. Now there is a general tendency to inflate prices of seemingly ordinary goods to unprecedented heights, as well as false advertising of these very goods. Such speculative actions force many online commerce sites to closely monitor pricing and remove listings where goods are sold at inflated prices. Sometimes it comes to the complete deactivation of the account of such a negligent seller. Such tough actions in relation to those who want to profit from panicking people are not only aimed at the short-term prospect of restricting the activities, but also in the long-term. Since now speculative stores will now be busy trying to regain their former reputation, which they have lost with their short-sighted actions.

All this at first glance is rather depressing tendencies, but if you look at the whole picture, the situation is not so bad. How to keep your business in good working order at this time? Stay as transparent as possible and show customers that they will receive exactly what they ordered and at exactly the price that this product should cost, do not speculate. You can also try to retrain your store and start selling products of other categories that are now popular, be creative. Also try not to overload your customers with information. Many stores are now trying to notify customers about how they deal with coronavirus and how it will affect the services provided. Try to be positive with clients and not overload them with unnecessary information. If you have any problems with the delivery and the goods may arrive later than usual or not arrive at the customer at all, notify him of this. And that’s all for now. Feel free to email us and our team and our Team of Magento 2 Developers.

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