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The COVID-19 pandemic situation is affecting all the business over the world. Businesses need to face a lot of new challenges like the eCommerce, online shopping. Everyone stays home and reduce going out. The income of businesses in the physical store will decrease because they may shut their door, but the income of ecommerce and online shop will increase as the people are isolating themselves at home and shopping online. Let us explore about the impact on ecommerce and the online shopping behaviour in COVID-19 pandemic situation.
Also let us explore about how the companies face the potential problem on ecommerce and how they can react the effect.
First of all, what is the meaning of ecommerce? Ecommerce is abbreviation of electronic commerce, it is an activity that business selling their products or customers buying thing on the internet.
Ecommerce use some technologies like mobile network, internet marketing, online business deal process and the data collecting system etc.
According to the PYMNTS’ 2020 Remote Payments Study, there are 72.1 percent people using their mobile phone for the shopping in the world. Ecommerce and online shopping are changing the world and the user’s shopping behavior. The 19 percent of increase in mid-April in U.S. retailers’ online year-over-year (YoY) revenue growth is the evidence as the in January the YoY is 49 percent. There is a report on The Drum shows that there is a predicted growth by17.7%in the ecommerce advertising spend, 22.2% growth in the social media spending and a predict of
As technological advancement, it is very convenience that a person can buy anything they want on the internet. Before the COVID-19, people would like to go to physical store for the essential thing. During the COVID-19, everyone wants to keep safe from the others. They go out less for the activities or meetings. Things are different now, they all go online shopping. Isolation can help to reduce the spread of the crisis, but many people think it is hard to go back to shopping habit before. It is because they are worried about getting infection. Morning Consult study (the survey has interview 2,200 adults in U.S.) found out that “24% of consumers said they would not feel comfortable shopping in a mall for more than six months, 16% said they would feel comfortable in the next three months”. People are willing to buy necessary and the thing they like on the internet after the outbreak stabilized.
Shopping behaviour is changing from bucket shopping to online shopping now when all the citizens are being lockdown at home. A survey shows that men and women are different shopping behaviour while women are worried about the influence of the COVID-19 and men can be affected by the COVID-19. There is one-third of the men respondents have reported that the COVID-19 pandemic situation are affecting their spending on the products and 25 percent of women respondents said the same too. The survey also found out that men respondents have more experience in buy products online and get it in store than women respondents.
The any size of online shop and ecommerce are getting benefit in the shopping behavior from the customers. They can supply the increasing demands of the products and the services, but there is also some potential problem that they may face.
The protection of customers is one of the potential problems that companies may face. There are many fake and not safe online shop are selling some unsafe masks and hand sanitizers to the customers while the COVID-19 pandemic. Some sellers cooperate with those manufacturers and retailers for seeking benefits in the demand of the necessary thing for stay away from COVID-19.
The supply chain is very important now. Companies need deliver the product or goods safely, securely and quickly to the customers or those have the risk of the spread and who are work in the front of the hospital. Companies also need to protect their employees and the safety of the workers of the supply chain while they are meeting the requirement. The products delivery is also the potential issue that related to the supply chain. People are willing to stay home and buy thing they need online. The increasing number of the demand of products need to be delivery. These activities affecting and changing the logistics chain due to the COVID-19 pandemic. It brings some delivery companies challenge, if they need to deliver some products from one country to another country, they need to confirm their products are health and safe to deliver.
There will be high delay on the delivery of the products. There is a survey shows that due to the COVID-19, the order volume in ecommerce has increased 50 percent compared to 2019. The many supply chains have shut down due to crisis, the retailers need a day for fulfilling the order (small product). The huge one cannot be made out a day or just a serval day, it need more time and this will cause a bigger delay of the delivery.
The man force decrease will affect the selling of the companies. Man force is one of the important elements in a company. Company needs employee for collect data from customers, serve customers or even check the sales of the company. Due to the global crisis, many firms (not only small or median firms) are cutting out many human forces. This action of those firms makes a lot of unemployed. Without those employees the company may have a hard time to get over the crisis. Those business will get severely disrupted by the huge pressure made by the global crisis.
To protect their employees from the global crisis, many companies decided to have a home office. As the implementation of home office, the office in company will be left unattended and there will have other obstacles in home office. All children are suspended now, they are staying at home for keeping them from the crisis. Their parents need to take care of them, but they also have their own work to do. These may cause a potential issue due to the global crisis that companies may face.
The response to COVID-19 effects on business to customer commerce of the companies COVID-19 is affecting al the businesses in the world every single day. Companies
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