COVID-19 has made an indelible mark in the history of humanity in a short span of time that the World Health Organization (WHO) in a short span of time after the World declared it as a pandemic. The impact globally and governments were forced to employ safety measures such as social distancing and lockdowns to restrict movement to prevent further spreading of the virus. This heavily affected various businesses with many forced to halt operations and even close shops for good.
Not all businesses are dealing with the same effects as different sectors are going through different changes, with others seemingly being put into the limelight, such as e-commerce.
The e-commerce industry is one of the sectors that have mostly adapted itself to this current business climate. Because of the restrictions placed in different parts of the world that have people staying put at home for their safety, shifts in people’s way of life have caused a sudden change of focus to e-commerce. It has become even more popular and is now a major player in society.
This article will discuss how the COVID-19 pandemic is changing e-commerce and what these changes mean for us in the near future.
Disruptions with the supply chain
Since travel restrictions in place and people are encouraged to stay indoors, the disruption in the supply chain is bound to happen. Which is why customers are experiencing changes in their expected delivery time and shipping fees.
Some logistics companies have temporarily closed down while others cannot enter certain locations due to lockdown measures. This may result in a lot of unsatisfied customers that may last even after restrictions are lifted, which is never a good sign for e-commerce businesses. Customer satisfaction will make or break this industry and being in this situation is certainly bad for business.
Thus, most e-commerce businesses will be looking to address supply chain disruptions through different means such as finding other suppliers and logistics partners or expanding distribution channels through purchasing another warehouse facility in strategic locations. As a commercial real estate company that provides consulting services, we see this as an opportunity to showcase our brokerage so we can help e-commerce companies who are going through any disruptions with their supply chain.
Changes in the purchasing behavior of consumer
Another catalyst for the change that COVID-19 brought upon the e-commerce industry is the sudden change in the purchasing behavior of consumers. With the majority of the world frequently going online, shopping habits have drastically changed.
More and more people are dependent on shopping online because of fear of going to public shopping places and contracting the coronavirus. This is where groceries that sell online will thrive. Consumers are now going for the buy online, pick-up in the store option when it comes to purchasing essentials because they see it as the more convenient option during these times.
This trend is seen to be sustained even when the “new normal” is implemented. Customers will be relying on e-commerce to make themselves feel safer from the threats to their health.
The COVID-19 pandemic placed e-commerce at the forefront of this business climate for a reason, it’s because it can adapt to the current circumstances. E-commerce will be an integral part of helping the economy get back on its feet.
If you’re an e-commerce business owner looking to expand to another location to provide better service, let us help you. Contact us here.