According to the consulting and research firm Technomic, 52% of consumers are avoiding crowds. 32% are leaving their house less often because of coronavirus. The stock market too has become increasingly volatile. We already know from our last blog on COVID-19 that the pressure has been piling up on the eCommerce brands to meet the increasing demands. On top of that, reaching to the potential audience with limited workers is as difficult as it gets. Not only have the deliveries have been delayed, but also have many productions stopped, creating clashes and losses for companies.
Amazon has sped up the production and delivery of medical and household items, putting a stop on all the other (new) FBA orders and shipments. Shopify has also issued that buyers may face problems when it comes to aspects like drop shipping and low sales. The problem isn’t limited up to China anymore.
With half the world shut-down and quarantined, COVID-19 has affected every business globally. While consumers are spending on essentials like groceries and, of course, toilet paper, sellers of nonessential goods have seen their sales drop by 40% to 60% on Amazon lately, as shoppers limit discretionary spending. Other problems like customer wariness, inventory shortage, and supply chain issues are just the beginning.
There is no doubt that the recovery process will start, and soon. But before it does, websites will need to enforce strict rules that the people can follow. While some brands are trying to capitalize on changes in the market and take advantage of customers’ fears, experts urge e-commerce businesses to avoid such tactics. Amazon and eBay have already warned the sellers about the same and eliminated over 1 lakh sellers.
As more and more people are staying home, there is a notable increase in people using the internet. By making your products as virtually available as you can, you can increase its consumption.
Until then, stay safe, stay home, and take care of each other.