COVID 19 AND E-COMMERCE – CRISES CAUSING DIGITAL TRANSFORMATION

Coronavirus has affected not only the physical health of people worldwide but has also significantly impacted business and the economy worldwide. Experts reveal that the pandemic has rapidly increased e-commerce growth to another cluster of speed. It has impacted e-commerce to such an extent, taking four to six years to come to this level. This ongoing pandemic has affected the retail sector of the market the most. With the trend and safety measures introduced by the government, that is, Work from Home and Social Distancing, people have started using and trusting the market, which is just a click away. It has become the "new normal" in today's era.

E-commerce has started becoming friendly and needful for both the customers and the businesses. Now, people have started shopping online, and businesses have started investing online even more than before. The brands that tend to maintain a safe distance from e-commerce face a big loss in their market value. So, every brand and association is now majorly focussed on their online advertisement and are preparing their business for e-commerce to survive.

A shift of businesses and customers towards e-commerce for survival

The Covid-19 have introduced a different definition of new-normal to the market. With the measures like social distancing and acts like lockdown, the economies of the globe have drenched to another level. It has influenced the market to shift their business from retails (offline) to the online sector. E-commerce now is being welcomed by the customers and adopted by traditional businesses and brands. Various industrial sectors such as on-demand delivery providers related to timely and fresh production, online education, social engagement networks from gaming to OTT networks, e-pharmacies, online consultations have found their turning point to a different way of up-gradation. Businesses in these mentioned segments have survived and noticed triple-digit growth, with millions of new potential customers onboarding their webpages to cope with this pandemic and crisis in the last couple of months.  

Advantages for Customers Buying' Online': - 

1.Lower Prices: 

It could be very easy to manage an online store rather than an outlet and a shop in the retail market. It is feasible and affordable for brands to manage their online stores when compared to offline stores. Online stores also require less staff as products can describe themselves and display their USPs themselves on the brand's webpage. It leads to less cost coverage for the brand to sell their products online, opening up huge discounts and offers for the customers. If the investment is less, then obviously the brand would prefer to give more discounts to customers, to attract them and make them their permanent clients. It is the reason how e-commerce business owners can afford to pass operational cost savings on to consumers, saving their overall margin. 

Mostly, brands are direct competitors on online platforms. Therefore, there are more chances of less pricing products and services for the customers, as businesses want more customers and clients to trust and purchase from their website.

2.Convenient and approachable:  

Offline or retail stores have a fixed tenure of the day to serve their customers. Few stores have a specific time for product exchange and refund terms. In case of emergencies, sometimes, customers have to rush from one place to another for their products or service demands but fail to fulfil their requirements due to inconvenience in time and lack of instant comparison from one platform to another. However, when it comes to online marketing, customers can read about services, browse products, compare services, and place orders whenever they wish. In that sense, online shopping is very convenient and gives consumers more control over their demands and expectations. 

3.Huge variety of choices and options: 

Customers always need options and choices before purchasing any product for themselves. When it comes to the local markets or retail shops, the options and choices of services and products are limited. Brands fail to deliver everything under one roof due to a lack of investment calibre and less customer interest. Some small shops cannot afford to keep every product that the customer demands in their small shed or roof. However, the online market provides a huge pace of options for the customers, where businesses need less investment and become a showroom of more choices.

Advantages of e-commerce for brands and businesses 

1. Data and Information of audience and target customer

Customer data and information is a major factor for the long-term benefit of any brand or business. It is a goldmine for the brand and businesses to boost their growth. Online platforms give you access to your potential audience and targeted customers for reviewing their demands and needs, getting feedback, and understanding their pace of shopping. It is also helpful to connect with the audience easily and contact them for special offers and discounts. Not only do online consumers submit their name, email address, and phone number when signing in or registering on a website, but they also give an overview of the consumer behaviour and demographic information, available through Google Analytics, that can benefit online retailers optimize the consumer path and market more effectively and efficiently.

2. Increased audience base

Following online business or e-commerce sites makes geographical boundaries less important and insignificant. You could increase your business by delivering your products online to the customers, or even websites of other brands, all around the globe. It doesn't specify you to a particular location, state, or even a country. 

3. Always available

Your business never sleeps, even if you are offline. If you are working on online portals, you are available 24/7 for the entire year to serve your audience worldwide. This opportunity is an overwhelming sign for your business and brand as this could open up your way to serve and stay connected with your customers for the maximum period. They can request you for your services or products, even at midnight. Even though your customer support may be sleeping or unavailable, automation makes sure that the rest of the sales process is always working properly and is active, and consumers can buy at any time and any day (including holidays).

Challenges and Opportunities - for E-Commerce in Pandemic

·       Transformation in consumers' choices and preferences.

It is observed that everyone now has changed their preferences and choices for purchasing and buying things. All around the globe, consumers are following social distancing, and lockdown remains to continue in many nations to date. Adopting these measures, people avoid going to a crowded retailer market and have started preferring the online market. This change in consumer preferences and choices has led to a drastic change in the business and economy of almost every nation. Most of the retail stores settle down to remain close, post lockdown also. That's due to various reasons, including social distancing measures, lockdown in a pandemic, and changing consumer preferences. Customers have realized that the online market has become a big boon with the coming of AI and chatbots and has become a safer and more sanitized option.

Moreover, this pandemic has become a good scope for the online market as it has resulted in a more permanent shift to online retailing over brick-and-mortar retail. During the lockdown, due to lack of money flow and economic outbreak, and with the brighter and higher scope of online brand up-gradation, many brands have announced store closures, and consumers are more attracted and satisfied with e-commerce experiences.

·       Everyone started going Online… no age limit set to become digitally active

This pandemic has been very beneficial in developing nations and their population technically. Gone are those days when millennials or youth used e-commerce for business. The crises have encouraged everyone to go online and explore without any age limit or criteria. In India, it is significantly observed that people have started using online payment platforms, UPI for payments instead of cash withdrawal, to digitalize themselves and protect themselves from coronavirus. People from all age groups have accepted online culture and digitalization very well and are happy with their experience.

·       Safety concerns

It is both a challenge and an e-commerce opportunity. It solely depends on how careful your brand is regarding the safety and hygiene of your products and services. Many customers do not prefer online deliveries because they do not try the brand and feel like their packaging or manufacturing could carry coronavirus. So, they try not to order anything from the online brand or association to ensure their health and safety. However, online brands and businesses try to focus on these safety concerns and rectify their hygiene and sanitization process to attract the audience and help them continue their purchase from their market. It could be a good option to put the details of the safety measures on your websites to make your customers aware of the precautions you and your brand is taking to provide your products and services to the customers and the prevention you are taking to save your customers from coronavirus. 

Conclusion

It is a fact that Covid 19 has shut down many businesses and brands all over the globe. But when it comes to e-commerce, the pandemic is a boom to the market. The pandemic has raised e-commerce to such an extent, which nothing else could have done, in a minimum of 4-5 years.

It could be predicted that once everything is settled back to normal, few consumers and audience may come back to their old habits of preferring the retail market, however many who have found attraction, safety, and satisfaction with their online experiences will remain to the online culture of e-commerce with their daily consumption. It could be clearly said that – Covid 19 has been a changing point for digital transformation across ecosystems.