Yes, the world is in shock and global economy faces a massive disruption. Some even say markets are free falling. Yet, digital commerce and online spending face a significant increase.
Recent data indicates that people order more goods and services online.
That’s a different side of the #stayathome challenge we now face. Let’s dig deeper to shed a light on how e-commerce platforms and online marketplaces will completely substitute our average shopping spree at the local mall.
Business Will Endure
First of all, good new. Just today US President’s Administration agreed on a 2 trln stimulus package to help small and middle business as well as large layers of population. Shortly after stock prices went about 10% up according to The Wall Street Journal. This help package will help reduce the damage and prevent rise of unemployment rate. Overall, it will reduce the stress brought by coronavirus.
And this is great for the population as a whole. A lot of dangers are still on the horizon but the prospects allow optimism. Digital markets and e-commerce certainly will continue to become even a greater part of our lives, ending physical perhaps once and for all, who know?
Alternative to Live Shopping
We may be at home but we continue to spend. Most digital on-demand services like Uber, Amazon, and DoorDash. Like many other digital alternative to live daily experience, this year’s shopping will consist mostly of scrolling. But chances to catch a virus this way as compared to a usual stroll in the mall are close to zero.
The best way to act for different manufacturers and service providers is to target clients exclusively digitally from now on. That is to be done, emphasizing convenient delivery options, comfortable purchase process, and friendly user interface. Also, of course, one of the most powerful advantages of e-commerce – users can make orders 24/7.
The forecast is that major brands will try to compensate in digital selling what they are going to lost in physical stores and service ventures.
E-commerce products do not require additional logistics. They are delivered from the storages right into the hands of clients. Thus, no transportation is required from the storage to the store. At the same time clients do not gather in crowds in malls and supermarkets which is not option due to quarantine.
It is common knowledge that online shopping is much cheaper than live shopping. I once bought a sweater 25% cheaper online than the same sweater cost in the physical store of this shop. Producers do not pay for rent and hire less personnel. You can even find a myriad of 1-person store of anything and everything on Instagram or elsewhere. The point is that with less expensive price tags online stores have been decidedly win competition over live stores in the recent years.
I emphasize that the time of crisis if always a time of opportunity.
With stores closed for whoever knows how long, maybe even till summer, e-commerce and online shopping will definitely see even a bigger increase in upward metrics.
People’s habit to spend need regular stimulation. Even though we don’t go out much for now, we still may not be able to stand against the craving to buy a new pair of sneakers or the latest set of headphones. This is a very common consumer’s weakness but also one of the little pleasure in life many of the people celebrate.
Since the world economy faces a globl challenge that is Coronavirus Pandemic, many business ventures and whole industries are on quarantine stand-by, awaiting further notice. Human matters, therefore, move to the web. Many of the corporations, including Google, switched all of their internal processes to remote work. Remember tech boom that followed the 2008 crisis? Well, one more reason to look for niche possibilities now and act quickly.
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