The global economy is witnessing a paradigm shift with traditional businesses coming to a halt bowing to the pressures of the pandemic – COVID-19 but, at the same time, the world is also seeing the emergence of digital platforms becoming the game changers of business. If we look at history, every epidemic has brought its share of challenges, but, it has also given birth to some revolutionary business ideas to kick start amidst COVID-19 crisis.
The impact of the deadly virus is no small. Due to restrictions and lockdown which was imposed to contain the spread of the virus, in turn, forced the brick mortar shops to close down while putting the tremendous workload on the online businesses causing a sudden surge in orders, disruption in the supply chain, running out-of-stock etc. Since identifying the challenges of a crisis is the first step to bringing solutions. These are opportunities in disguise if you carefully look at them. So, let us understand the challenges and opportunities an eCommerce business can come across.
Challenges for eCommerce
Changing Consumer Behaviour
One of the biggest effects of the pandemic is the ever-changing consumer behaviour.
Due to a vague looking future, consumers are having difficulty in deciding their purchasing power, thereby creating unexpected stock fluctuation and the demand-supply cycle.
A person who had decided to buy an automobile for him before the pandemic struck will think it is best to postpone the purchase of the car for another few months. This is because the earnings of people have become very unpredictable. Most of them having faced lay-offs or pay-cuts will ensure that they keep their budget tight on buying only the essential commodities of the house.
Imbalance in the supply chain
Covid-19 pandemic has led to the upsurge demand of certain essential commodities like groceries and medicines whereas luxury items have taken a backseat preference for consumers. Unexpected and instant demand for a specific commodity disrupts the supply chain in a situation like a lockdown due to resource unavailability, restrictions on public and private transportations and closing of many establishments.
Moreover, with China in troubled waters with most of the other countries, we will have to look for an alternative supply resource for all those products and raw materials which China had a monopoly on.
Handling website traffic
E-commerce retail sites have seen a global increase of 6 percent in website traffic between January and March 2020. Consumers are crowding the e-commerce websites to stalk up on groceries and other daily usable items. Online transactions increased by 32 percent in June 2020. This sudden traffic congests the website making it slow in performance which can drastically affect the business profit numbers.
Safety of the customer and staff
Although the safety of customers and employees is the responsibility of the organization, with the pandemic, it has become the top-most priority. With most people working from home, every service is now committed to reach the customer’s house but with a lot of safety and precautions, for which, the additional use of safety gears, masks and sanitizers is increasing cost and reducing man-hours.
Opportunities for eCommerce
Go closer to selling what is in demand
It is time to understand the situation and look for what new demands have come in the market. Companies are changing track in their production line to ensure business continuity. Examples of them are sportswear like NIKE and PUMA have started producing face masks and Asia’s third-largest paint company Asian Paints have started manufacturing hand and surface sanitizers to meet the current demands and securing their place in the market.
Find alternative suppliers and make in your own country
Now is the time to break the monopoly and reduce complete dependency on a single country for its supply of economical and variety of products. You must look for alternative suppliers so that gradually we create multiple chain supply sources. Trying to start the production of import materials in your own country can be a great start. This creates new employment for our own countrymen and we can be ready to easily face any crisis in the future.
Create your online presence
Given the facts and figures, the percentage of online shoppers is increasing every month since January. As per Forbes magazine, online shopping grew more than 50 percent during the period of March to May as consumers preferred shopping online from the safety of their homes rather than going out to shop. Online shopping is growing so fast that the global online shopping market size is predicted to hit 4 trillion in 2020.
In a nutshell
Looking at the current scenario, Covid-19 appears to be here for a long time and hence we have to learn to live and deal with it. Rather than cursing the present situation, you just need to look around as opportunities are plenty and by identifying them, you can make the best use of it.
So what are you waiting for? Approach the best multi-vendor ecommerce marketplace solution provider like today who can help you develop an eligible Magento multivendor ecommerce marketplace solution that gives you the best in technology experience and work wonders for your business.
Reach out now if you are ready to take a leap from a commercial building setup to a wider customer accessible online store.