How has COVID-19 helped retailers grow online and Avoid Bankruptcy

COVID-19: A Pandemic that changed the world

Just two years back from now, everything was going right on track, and we did not even imagine in our wildest dreams that one pandemic will change everything in the coming year. I am sure not even a single one of us saw this one coming but during the pandemic nobody expected that there would be a positive sign as well retailers would grow business. However, it happened and alter the whole world completely, once and for all.

I don’t think it’s too early to predict that the COVID-19 global pandemic will be one of the year’s defining events, with ramifications that will continue well into the decade. 

The scenario is constantly shifting. The number of persons deemed safe to congregate in one location has decreased from thousands to hundreds to ten. Many restaurants, bars, movie theatres, and gyms are closing in major cities. Meanwhile, many office workers are confronting new obstacles as they transition to full-time remote employment.

Impact of COVID-19 on the eCommerce industry

This new pandemic, Coronavirus, has produced a lot of economic disturbances, which are evident in eCommerce. In most sectors and industries, lower values and more market volatility are regular occurrences. However, in a time when many sectors are faltering, there are opportunities for others to thrive. ECommerce is one area of the industry that is assisting economies in staying afloat.

The pandemic of the Coronavirus has pushed eCommerce to the forefront of retail. COVID-19 has impacted every industry, for better or worse, and introduced a lot of ecommerce trends. So far, e-commerce is doing quite well during the Coronavirus. Customers who cannot visit a physical store can shop online instead. But, as is typically the case, nothing is as straightforward as it appears.

The pandemic also served as a reminder of the value of digital transformation. Retailers with a good eCommerce strategy are more flexible than their traditional rivals, giving them a higher chance of surviving supply chain shocks.

Let’s take a look at a few of the opportunities and challenges that COVID-19 has created for eCommerce retailers:

Opportunities for eCommerce retailers during COVID-19

• To avoid shopping in public locations, consumers have turned to the internet. Home delivery services and brands like Amazon are growing in popularity. The internet departments of major stores are the biggest winners.
  
• Consumers who bought things online during the holidays continued to do so after the holidays were over. This shows that buyers may repeat the same purchase procedure in the future, even after the Coronavirus pandemic has passed.
  
• There is less competition for advertisers who are still devoted to launching ads, as seen in some parts of China. However, these companies are currently running out-of-date advertisements that aren’t relevant to the issue. If the campaigns are tailored to the present social climate, they have a better chance of succeeding.

Challenges for Ecommerce Retailers in COVID-19

As the saying goes, with opportunity comes challenges. Taking a careful look at some of the possible challenges may help eCommerce to mitigate the expected recession. Some examples of potential issues are:

• If the economy falters or enters recession, supply chain difficulties such as product shortages and potentially decreased customer demand might stifle e-commerce growth.
• Providing people with handy shopping options such as pick-up, drive-up, and same-day delivery.
• The increased number of online orders puts a strain on businesses’ ability to fulfill them. This strain is becoming too great for some organizations, threatening to upend their e-commerce operations.

Panic Buying in COVID-19

Before digging in further on how panic buying has taken a boom, let’s first discuss what panic buying is and how to grow business during it.

Panic buying is a mass purchase that occurs just before or after a disaster, regardless of whether the event is actual or predicted. It frequently occurs in the aftermath of extreme weather events, such as heavy snowfall or hurricanes.

People began storing up supplies as word of COVID-19 spread, and the World Health Organization proclaimed it a pandemic. They purchased medical goods such as hand sanitizer and masks and home necessities such as toilet paper and bread. Soon, physical and online retailers were straining to keep up with demand, and supply price gouging became commonplace.

Humans react to crises in a variety of ways. When confronted with an unclear, dangerous situation over which we have no control, we tend to do everything we can to feel in control.

According to CNBC, consumer psychologist Paul Marsden of the University of the Arts London said, “Panic buying may be regarded as playing to our three primary psychology requirements.”

These are autonomy (or the want to feel in control of one’s activities), relatedness (the desire to feel as though one is contributing to the well-being of one’s family), and competence (the need to think like intelligent shoppers making the correct choice).

These psychological considerations are the same reasons why “retail therapy” is used to deal with various personal issues; however, there are additional layers during a pandemic to grow business.

Moreover, panic buying has given a great opportunity for retailers to move from single-channel retailing to omnichannel retailing.

Conclusion

Many e-commerce retailers grow business as a result of the Coronavirus. We’ve noticed a rise in concerns about people and businesses who are financially vulnerable. The pandemic is affecting all aspects of life and business, from loss of profit to jobs.

Nonetheless, some businesses appear to be well-positioned to profit from the outbreak’s changes in consumer behavior. Instead of panicking, perhaps this is the opportunity for companies to adjust their focus. There are still opportunities accessible; all that is required is for them to be identified and utilized.

Proactive retailers will learn from others and embrace digitization by switching to an omnichannel approach when limits on the Covid-19 epidemic are eased. More frequent supply chain disruptions, along with rising customer demands and market competitiveness, leave them with no other option.

Nevertheless, COVID-19 has shaped the e-commerce industry and the minds of retailers operating in the industry. We are clueless about how long this pandemic is going to stay with us. Still, it left an impact on all of us, changed consumer behavior, and installed a permanent boom in online shopping and the eCommerce industry.