How will eCommerce change after the coronavirus crisis? Main challenges (2)
Miguel Nicolás
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Let´s carry on with the analysis of the new outlook of electronic commerce. Keep reading you also wonder how eCommerce will change after the coronavirus crisis.
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As we already performed a quite detailed analysis in the post that started the series (you can read it here), we will not stop in the context as much as in certain specific changes that are already beginning to be detected after the coronavirus crisis.We hope that when you finish reading this article we will have managed to give you some guidelines to define your action plan.
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5 examples of how eCommerce will change after coronavirus
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I have chosen these 5 challenges that are the most representative of the new reality and that, to a greater or lesser extent, will affect the vast majority of markets and eCommerce niches.
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#1 – Market fragmentation
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If there is a clear effect that the coronavirus will bring with, it is the fact that many professionals and businesses will find themselves in the need to reinvent themselves so as not to be left out.This will affect from companies that were pure players in retail - they did not have an online store - to others that will emerge natively at the prospect of finding a new means of generating income.No matter the origin, the incontrovertible reality is that most of the niches are going to be full with more competition: the price per click will rise in SEM campaigns, there will be more fighting on social networks and SEO to gain the customer service and, ultimately, it will become more important than ever to gain a representative market share.
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TIP PRO: Make yourself strong in your niche. You have to find a way to create entry barriers for new competitors. Take advantage of your knowledge of the market and use authority and demonstrable experience as one of the keys to your business case.
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#2 – New niches
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The change has been so important that it has redistributed the relevance of the different sectors. Products that in certain countries had a marginal market share have suddenly become a priority.A clear example is that of masks in Spain. Their use was practically exclusive in the healthcare sector, but now they have become a necessity for the general population.
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I do not mean that you necessarily have to start selling masks because, although the demand is big, so is the competition. Even so, it is worth investigating those niches that are best reacting to the new situation and starting from them to find alternatives.
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PRO TIP: It is time to use long tail to find auxiliary or related products. No masks, but ... children's masks? Reusable face masks? Customizable masks? Pet sanitizers? Disinfectant gels for chemical allergies?
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#3 – Sales, better online
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This has been a subject that has triggered much controversy. Many countries´ governments have even considered banning sales in physical stores to avoid problems due to mass meetings in limited spaces. Este ha sido un tema que ha desatado mucha polémica.If the Internet has always been characterized by being associated with the best price and, as we have previously mentioned, it allows us to better adjust margins, at these times when social distance is an additional concern for clients and authorities, it is a good idea to reserve seasonal offers for this channel.
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#4 – Omni-channel and on-off synergies
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The title of this section is very cool, but what it means is something easier.We need to make all the assets of the company work in a coordinated way, supporting and complementing each other. Omnichannel needs to be implemented even in SMEs because, to be honest, we cannot disregard any conversion help.
The idea is to enhance the virtues of both physical stores and online stores to cover all aspects and needs, and allay fears in customers. -
TIP PRO: Offer cross promotions to stimulate both channels according to the needs of each one. It is a good way to manage traffic and turnover.An example: surely showrooming (visiting off stores and buying online) suffers a lot, but you can use the website to arrange visits to the store by appointment to advise and make purchases online at the moment. Something similar to what the fashion firm Bonobos does.
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#5 – The new health measures
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How will eCommerce change the way of buying online after the coronavirus? The fact of buying itself changes a little, but there are some operational and logistical aspects that will be affected by the new health impositions.Many companies of all kinds have established contactless deliveries since the beginning of the COVID-19 crisis so that customers and couriers are exposed to the bare minimum, but fear of contagion is one of the strongest brakes we are going to face from now on.
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We must take all preventive measures, but that is not enough. Just as we incorporate the origin of the products into the advantages of our store, whether they are eco-friendly or we offer free shipping ... health policy is going to be one of the new purchase motivations.
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TIP PRO: Use transparency more than ever. Show your warehouse to your workers, the processes that are carried out to sanitize, delivery and return policies ... adapt your business and then make it visible.
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If I had to answer in a nutshell how eCommerce will change after the coronavirus crisis, I would say that the challenge is to be more secure, more specific and more efficient.
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And what about you, how do you think COVID is going to change electronic commerce? Any notice?
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Images | Unsplash.