How Is Coronavirus Impacting Ecommerce?

Restrictions to our freedom of movement and a global shutdown to limit the impact of the pandemic have led to huge changes in customer behaviour. But what does this mean for ecommerce?

While a global recession looks inevitable, with many businesses and industries either struggling or already collapsing, it is not all bad news. Over 2 billion people, or 25% of the world’s population, are digital buyers, so businesses with a strong ecommerce structure have a huge opportunity to bring solutions, products and services to a disconnected world.

In these uncertain times are accelerating the adoption of online services and may well provoke a long term behavioral change in the way people shop, consume media, seek education, or generally get things done.

With the majority of retailers closing their physical stores temporarily, we’re likely to see a huge shift to online shopping in many retail sectors and it’s important to make sure businesses are ready to capitalize on this shift.

In theory, online stores should benefit from the switch of consumer behaviour to online shopping since they are already well-positioned to serve the increasing demand for goods and services.

However, retailers face many different challenges at this time. Depending on the sector, it could be that some actually see website visitor numbers decline, so it becomes more important to make the most of the traffic that does come in, working harder than ever to increase conversion rates. Other sectors face the other challenge of managing increased customer demand, trying to maintain stock levels and delivery performance in difficult times.

The other key factor is that as consumer behavior changes with increased customers shopping online, the marketplace will become more competitive as companies seek to capitalize on this trend.

This would suggest that, rather than pausing marketing activities such as Analytics, SEO, Content Marketing, Conversion Rate Optimization, Pay Per Click (PPC) advertising and Paid Social Media activity, companies should invest more heavily into these areas. This could help them thrive in a competitive space.

I hope you enjoyed that short article.

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