COVID-19 pandemic has changed the dynamics of buying products and services and how people perceive e-commerce worldwide. Due to the nationwide standardized lockdown for a very long period and the ever-growing fear surrounding the pandemic and hesitation to move out of the house, the shift has tilted towards e-commerce.
Consumers have gradually started bidding adieu to supermarkets, shops, and shopping malls. This shift towards online portals for the purchase of required products ranges from basic regular commodities to luxurious & branded goods. The norm for social distancing is in practice in full force leading to a further surge in online buying and selling of products and services. People have started embracing this concept and the presence of First-time users (FTUs) is quite visible on the websites of e-commerce companies.
Impact of Covid-19 on Businesses:
The outcome of this pandemic is something that the world has never witnessed where businesses have been forced to remain shut for months together. The e-commerce industry came up with the general idea of helping the customers procure every commodity of need, irrespective of where they are stationed.
Global market opportunities for India are expected to rise from $30 billion in 2017 to $200 billion by 2026 as per the IBEF report. As the report further suggests the Indian e-commerce industry may surpass its US competitors and mark its position as the second-largest e-commerce marketplace by 2034. China is the leader of this business with a value as high as $672 billion.
Due to decreasing productivity during the nationwide lockdown, there have been several instances of loss of jobs, pay cuts, and finances. To meet their financial requirements after businesses shut down, people have swayed online retail.
The New Normal: Optimizing E-commerce business:
Companies are developing practices to provide quality products to the customers by cutting down on unnecessary costs. To be able to develop and build a brand name, industries have to target the right set of audiences, find their product niche and regularly interact with customers. Through this connection, brands will be able to identify the tastes and preferences of the customers and foresee a demand accordingly.
Face to face competition does not exist in this sector. Online stores compete with one another in terms of the offers they provide, prices, product availability. The brand which turns out to be most relevant is successful. The financial pockets of the businesses have been cut deep due to this pandemic.
Businesses have to apply for business loans for survival. Restarting business is a task. Business needs to check for business loan eligibility as per their current standing in the market. The online business loan EMI calculator is a useful facility wherein one can check for monthly EMI payments to be made.
Businesses can make business loan interest rate comparison as per loan offering by various financial institutions. The one offering a moderate business loan at a decent business loan interest rate is the most suitable for any business.
Birth of Trends in E-commerce:
1. Mobile Shopping will flourish:
A mobile app for e-commerce houses is a hot selling point in the business. The conversion rates on mobile apps have outperformed traditional selling and sales made even by web browsers by almost 57%. The attractiveness and convenience apart from speed and reliability have been the backbone of this success. Entrepreneurs should realize the potential of adapting to this form of technology to taste desirable success in the market.
2. Remote Working:
To mitigate risk and build on cost savings, companies have adopted the remote working model. Media and technology have become a crucial part of our lives. People have become more active on social media. Numerous needs are required to be fulfilled and quality of life is to be increased. Due to the busy schedules, while working from home, home delivery of all sorts of products is at the forefront. Social media campaigns have led to creating awareness in this regard.
Category- Based Demand has arisen out of this shift as buying patterns of the consumers has become more cautious. The below are some of the examples:
- Buying wellness & healthcare products
- Buying preventive health products such as masks and sanitizers
- Piling on pantry items
- Buying in bulk quantities
Thus, we can observe that the trend in the rise of e-commerce is going only to go upwards from here. Consumers have become comfortable in understanding how this industry functions and it has only proved to be beneficial in terms of fulfilling their needs anytime and anywhere.