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Pandemic Effect: How Covid-19 Changed Ecommerce And Supply Chain Industry

Mar 23, 2020 | 4 Minutes Read

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Almost all aspects of life now have been affected by the spread of COVID-19, popularly known as Coronavirus. Starting with China, the virus is slowly taking over the world, changing the social, economic and political aspects.

The eCommerce and supply chain industry are not exempted from the effect of this virus. The effects ranging from both good and bad, it is definitely interesting how it is changing the global eCommerce market. 

Let’s take a look at all the ways Coronavirus is affecting the world of eCommerce and supply chain and how you can protect your eCommerce business and web development process from these effects. 

COVID-19: The Negative Impacts On eCommerce Till Now

The most impactful negative effect until now is on the supply chain industry. Most of the major eCommerce organizations depend on Chinese regions as their manufacturing hub. And ever since quarantine on those regions began, these online retailers are suffering the most, losing almost a month of stocks. 

corona virus symptoms

The online wearable market growth is going to slow down significantly this year, according to the experts. The 9.4% growth rate prediction is a significant drop from the 89% growth last year. For more than 75% eCommerce organizations, quarantine, and transport restrictions have posed some serious threats to their business operation. 

Despite the worldwide effect, more than 44% of organizations are completely unprepared to handle the effects of this supply chain disruption.

Companies now have to lower their expected rate of growth this year as more than half of organizations have trouble moving goods from China due to the widespread disease. 

However, the effect of Coronavirus on eCommerce is not all negative. While some industries related to eCommerce, such as big fashion brands, machines, and gadgets are suffering from this supply chain disruption, there are some types of eCommerce businesses and organizations that are thriving. 

COVID-19: The Positive Impacts On Ecommerce

Time of desperate needs always comes with some new innovative methods, and the eCommerce industry around the world is not. The methods that were considered to be optional or a waste of money until now are being considered as a lifesaver for multiple businesses. 

The eCommerce segment related to grocery delivery as healthcare supply is being boosted due to the widespread quarantine in various regions of China, Italy, and the USA, customers are avoiding going to stores and opting for online delivery of groceries and healthcare essentials such as medicines, sanitizers, etc. along with this, the older generation is now switching to online shopping to avoid going to stores since COVID-19 is more fatal to them.

In this time of panic, newer ways are being accepted and adopted by various business houses. Real estate firms are now using VR optimized website to sell more houses during the time of quarantine. Different companies are using various social channels such as Snapchat and Tiktoks to engage customers and drive more sales. 

COVID-19: How To Deal With Such Impacts?

The main reason why the eCommerce industry is so affected by the pandemic is that it never anticipated such a massive disease to sweep over the world, affecting every avenue of life like this. And as a result, the industry is going through such a decline without any ways of protecting itself.

There are still a few eCommerce industries that are doing a great job of surviving. These are the companies that either took on proper precautions at the right time. 

So, as an eCommerce startup, how are you going to be able to deal with such a massive and impactful incident? Whether we look at the recent scenario or think about the future possibility, what kind of precautions should you take to protect your eCommerce business? Well, here are a few suggestions for example. 

Diversification Of The Supply Chain Centers

Most of the eCommerce organizations are facing the supply chain crisis due to their centralized supply chain hub in China. If you are building your own eCommerce business, then make sure not to make the same mistake. Diversifying the supply chain centers in different locations will ensure that in the future, the supply of products to your customer is not hindered because of any kind of regional or global crisis. 

Web Development And Design For All Age Groups 

Since this crisis has shown some real changes in user behavior, having your eCommerce website designed for all kinds of age groups will give you a better chance at surviving. 

During the development process make sure to hire an eCommerce website development company that knows how to design and develop a website that is able to complete the requirements of the customers of all age groups. 

Ease Of Navigation On Your Website

Since at times of crisis like this buyers are going to resort to online shopping as a whole, having easy navigation throughout the website is going to be immensely helpful to them. 

Even in normal times, a website with easy navigation is loved by buyers. With intuitive navigation you can turn your buyers into repeat customers, therefore increasing sales and staying afloat even during the time of crisis. 

Robust Web Structure

As the number of site visitors increase, your website should be able to take on the increased traffic rates. Whether you choose to go with website development or eCommerce app development without a strong web structure and hosting plan, your eCommerce website would not be able to handle the increasing traffic. This will cause an immense loss in business revenue and reputation. So make sure that your website has a strong web structure to handle the increased traffic rates. 

Dealing with a pandemic such as this is not easy, and it is definitely not easy to deal with all the negative effects it is going to have on your business. But with the right process, attitude and innovative thinking, you can make sure that your business comes out of this economic crisis without any harm done to it. 


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