The COVID-19 pandemic has forced many small businesses to close their doors and people had to work from home and shop online. But for eCommerce businesses, this became an opportunity to thrive as the pandemic has led to a surge in sales. In the United States, online retail sales grew by 16% in the first quarter of 2020 compared to the same period last year. but, the growth of eCommerce is not limited to the United States. Worldwide, online retail sales are expected to grow by 20% this year.
What Is Driving The Growth Of ECommerce?
There are many factors that have contributed to the growth of eCommerce over the years. Some of these include the proliferation of smart devices, faster internet speeds, increasing consumer trust in online transactions, and rising costs for traditional retail businesses. However, one of the most significant drivers of eCommerce growth has been the COVID-19 pandemic.
The pandemic could also create a new generation of consumers who were raised in the digital age. This means they are comfortable shopping online, navigating various channels to make purchases, and sharing product experiences on their social media networks. In addition to this trend towards digital consumption, the pandemic has also led to a surge in online spending as consumers shift their spending from brick-and-mortar stores to online retailers.
What Impact Has COVID-19 Had On ECommerce Businesses?
The COVID-19 pandemic has had a mixed impact on eCommerce businesses. While some businesses have seen an increase in sales, others have seen a decline. One of the primary reasons for this is that eCommerce businesses are catering to different types of consumers during COVID-19.
The first group consists of customers who were already shopping online prior to the pandemic and continue doing so because they find it convenient and economical compared with brick-and-mortar stores. The second group consists of customers who are new to online shopping and find it easier than visiting physical stores because they do not have to travel, wait in lines, or carry items home.
What Can ECommerce Businesses Do To Increase Sales?
To capture the increased spending by existing and new COVID-19 consumers during pandemic times, eCommerce businesses should consider the following:
– Increase their marketing efforts, including online advertising and social media campaigns
– Offer discounts and promotions to drive traffic to their websites and apps
– Improve the user experience on their websites and apps to make it easier for customers to find what they are looking for and make purchases
– Expand their product offerings to include items that are in high demand due to the pandemic, such as face masks, hand sanitizer, and food
– Increase their fulfillment capacity to meet the increased demand for their products
The COVID-19 pandemic has created opportunities and challenges for eCommerce businesses. By understanding the factors that have contributed to the growth of eCommerce, including the pandemic itself, businesses can position themselves to increase their sales during this period.
There are several factors driving the growth of eCommerce. One factor is that people can now shop from home. This eliminates the need to go to a physical store, which can be dangerous during a pandemic. Another factor is that people can now buy items from around the world. This gives them access to a wider selection of products than they would find in their local stores. A third factor is that online retailers are offering discounts and promotions. This has led to a surge in online shopping.