How Did COVID Impacted Online Businesses?
The COVID crisis continues to keep the world in suspense. Although the spread of the virus has been curbed for the time being, there has recently been an increase of infections.
More consumers were shopping online for the first time in new sections, especially groceries and housewares. Even during the initial time of the pandemic, online retailers who sell masks and canned food recorded sales increases due to the virus. In the long term, however, many online businesses fear that the pandemic will have a bad impact on their income in 2021 and on all online retail.
Most Of The Online Businesses Are Affected
Almost 60% of online retailers are already expecting or recording losses in their daily business due to the COVID crisis. 20% of online retailers have not yet formed an opinion to assess the risk posed for online trading. But one thing is certain for most retailers: consumer confidence from Chinese products are currently severely disrupted and 80% of all online businesses even expect the crisis to worsen. Consumer confidence is often used as a measure of how consumers view the financial situation. Even if many online businesses fear that they may experience a drop in sales due to the current pandemic, the number of parcels sent in USA and Europe is showing positive growth.
All online businesses, whether small or large, had and in some cases still have to struggle with the impact of factory closures in Asia. Smaller online businesses in particular are hit hard by interrupted supply chains. While large online retailers usually have enough cash in reserve to quickly search for newer deliveries and sources of supply, a smaller business is powerless if the delivery fails.
What Changes Do Online Businesses Have To Adjust?
What changes do online businesses have to be prepared for? A very good question that probably every online retailer is currently asking.
Changes in customer service- Customers ask the retailers whether the IT materials pose a risk of virus. Trust in Chinese products are currently massively disrupted. People meet less for celebrations and birthdays. 80% fewer orders than usual. Customers leave the workshop faster or postpone appointments to next Spring. Each shipping provider can take different measures. Be aware of delivery restrictions currently in place in some countries and rely on flexibility in the shipping variants and providers you offer so that you can switch between them at any time in an emergency. It is also then highly advisable to use the facilities management certification (ISO 41001) if you have large premises as this helps a great deal in assuming third parties that you have good facilities management in place.