How Does COVID-19 Completely Change the Field of E-Commerce?
COVID-19 is undoubtedly the most defining event of 2020. Since January, it has changed almost everything in people's lives, from daily routines and habits to even the language we use. We started to hear friends saying that even if everything is back to normal, they would be sceptical about overseas travel again. Or began to hear parents and grandparents raving about the easiness of getting their veggies online. If these are not the signs of changing habits, nothing is.
Given that the COVID-19 situation is rapidly changing worldwide, it doesn't seem like its effects will pass quickly. On the contrary, they seem to have long-lasting implications on the way people live and make decisions. Those changing habits accelerated the expansion of e-commerce and forced sector players to be more top of their game than ever. Here, we gather some of the most crucial changes in the e-commerce business for you to comply with them to serve your customers better and exist longer in the market.
Change in the Market Dynamics
Do you know that Alibaba launched its online marketplace for consumers amid the SARS crisis in 2003? It looks like what is happening in the market now is no different than this, considering more firms are moving toward e-commerce to get their piece of the pie.
The increasing number of players in the market inevitably will end up with the intensified competition. Therefore, either you are a long-standing or a new player in the market, you should focus more on loyalty programs, subscription models, and promotions to ensure that you retain your new customers and don't lose your existing ones to the competitors.
Change in Demographics
There has been a significant change in the age groups of online shoppers all around the world. Elderly consumers going online have resulted in spikes in online sales, especially in countries like China and Turkey, where the elderly population engages less with technology than countries like Switzerland and Germany.
On the other hand, regardless of the magnitude of the increase, the COVID-19 crisis indeed adds a new and growing customer segment for companies to serve in the future.
Change in Demand
The pandemic not only cause changes in the dynamics and demographics of the market but also in consumer behaviors and buying choices. The pandemic's necessities and psychological effects lead more people to purchase health and safety products, shelf-stable goods, and food and beverage, as Nielsen called 'pandemic pantries'.
On the contrary, people have been less likely to spend money on luxury goods and experiences during this uncertain time. Considering the companies selling groceries, food and beverages increase in revenues more than expected, it is crucial to judge this changing demand in the market for your online marketplace.