Can eCommerce Overcome The Strain Of COVID-19?:
While this is the only option for many retailers, e-commerce is under extreme pressure from the COVID-19 crisis. And as these boundaries become clear, there are also strategies to get around them.
The most worrying news about these restrictions comes when retailers realize how and why eCommerce orders have increased since stores began closing in late February. These estimates differed and could not distinguish between essential and non-essential retail. Listrak reported a 40% increase in e-commerce since the state of emergency was declared on March 12th. According to Quantum Metric, the increase began in February, with an annual increase of 108%. However, the average order value (AOV) decreased by 31%, indicating that buyers are buying impulsively.
“We attribute the growth to a lack of local physical supplies due to inventory and a general desire to limit in-store exposure,” said Vice President Tamara Gaffney. strategy for Quantum Metric, in a blog. “Surprisingly, the growth rate peaked in the week of February 17th and slowed down in the week of March 2nd.”
As consumers spend money on basic necessities such as groceries and toilet paper, supply chain issues hamper essential retail for both individual businesses and e-commerce businesses. ‘Why do we have so many deficiencies and why can’t the system address them? Because you have a perfect storm,” said Steven A. Melnyk, a professor of business administration at Michigan State University. Most companies predict when they will meet demand, but the volume consumers are looking for has recently become unattainable.
But what about non-essential goods? Non-essential sellers reduce sales on Amazon by 40 to 60 percent. And 42% of retailers are concerned about consumer confidence but disagree on the extent of the impact. Almost 60% think it will have an impact, 22% think the impact will be significant and 20% expect a limited impact.
Regardless of the differences reported, retailers need to expand their e-commerce capabilities, both in messaging and ordering. According to data from MediaRadar, e-commerce sites doubled their advertising spend in less than a month, from $4.8 million in the week of February 17th to $9.6 million in the week of March 9th. Advertising and/or promotions are essential, if possible within limited budgets.
GoodFirms surveyed over 100 of the top eCommerce experts to determine the most effective tactics for small-scale online stores. Respondents voted for four options for the best strategies: content marketing, PPC advertising, email marketing, and social media marketing.
About 82% said pay-per-click (PPC) advertising drives traffic to e-commerce. About 76% voted for content marketing, and digital marketing is the third most popular strategy. Another 46.62% consider email marketing to be very effective.
“As the coronavirus quarantine continues, there are a number of factors that could change the number of consumers who continue to shop online and the extent to which brands are willing to spend money on e-commerce advertising,” according to a report. By Digital Marketing Industry News. . “Consumers who are concerned about job security and the market downturn may hurt their spending and start to define their needs above needs and focus primarily on acquiring their needs as self-isolation continues. The potential. Supply chain problems can restrict advertising if they cannot guarantee delivery of their products.”