The COVID-19 pandemic has had many impacts on businesses and especially e-commerce stores. And depending on the industry, the effects have been vast.
But the vastness varies, especially when e-commerce stores come into the picture. Some of the consequences are appealing, but others are not so friendly.
The impact of COVID-19 on eCommerce
The outbreak came with movement restriction, social distance protocols, and the work-from-home model. These saw the stores work to upscale their operations for profit purposes, while the conventional ones started adjusting to see how they could fit in.
But what was the actual impact of the pandemic on these online sites?
There was both an increase and decrease in sales
The primary benefit e-commerce stores enjoyed was increased sales due to individuals staying at home.
Many locked up at home turned to the stores for their daily supplies. From vegetables to pastries to cereals and drinks, every purchase moved online.
This led to an increase in the ecommerce payment systems used. In return, the stores replenished their stocks and sent money to another merchant.
However, some online stores did not enjoy more sales. These included travel-related stores and other service-providing ventures.
There were travel restrictions which meant many people stayed indoors, denying these businesses a share of the dollars.
Nevertheless, some became innovative, introduced virtual travel and other services, and reaped massively.
Decrease in customer loyalty
One of the effects witnessed due to the COVID-19 pandemic was a quick adjustment of lifestyles.
Individuals began realising alternatives to their usual brand. The options arose due to constrained incomes and lack of the preferred brand due to delayed logistics and deliveries.
As such, stores sold more of other brands, while people began using different products to the detriment of the more prominent and established brands.
There has been spread of e-commerce services
Ecommerce became widespread during the COVID-19 pandemic. Everyone was busy online making orders and inquiring how long the order would take.
The spread of the stores was due to restricted movements and travel, and the only way to get your supplies were these sites.
Thus, individuals had no option but to embrace it and catapulted online shopping to greater heights that could have taken many years to achieve.
Furthermore, the small businesses established e-commerce segments to prevent them from staying out of business for too long.
Interruptions in shipping, supply, and logistics
There is no doubt many consumers have turned to online shopping. The increase has led to an increased demand for shipping, supply, and logistic services.
Many online stores cannot handle the high volumes and have had to grapple with their supply chain to ensure products reach customers as agreed.
The effects of all these are interruptions, delays, cancelled orders, and a strained relationship with clients, spiralling to reduced sales.
The effects of the pandemic on online sites have mainly been positive. However, the stores need to develop a plan to ensure the gains realized are not lost going forward, as online shopping is the new purchasing model.