The coronavirus pandemic has had a serious impact on every type of business. The global economy is contracting and consumers in general are trying to save money and spend less.
Despite all that, the eCommerce sector is booming. Figures from the Office for National Statistics show online sales accounted for roughly 28% of all spending in October, compared with 19% in October last year[1]. What’s more, research provider Springboard, which monitors UK retail footfall, says visits to shopping destinations were down by 58% across the UK by 3pm on Black Friday compared with last year[2].
But coronavirus has brought challenges to online sellers as well as opportunities. eCommerce businesses have had to cope with an overall drop in consumer spending, keep up with sudden shifts in demand, and manage inventory, supply chains, and deliveries in the face of lockdowns and movement restrictions that can vary from week to week.
Fortunately, tech has stepped up to help online retailers to respond quickly to changing conditions. Here are some of the tech solutions that kept eCommerce afloat during the coronavirus pandemic.
Payment solutions
Cross-border payment platforms like Payoneer helped online sellers secure international online sales, instead of being limited to transactions in a single country or region. Different areas of the world were hit by lockdowns at different times, which meant that demand for online sales rose and fell in different areas at different times.
Secure multi-currency payment transfers also gives online sellers greater freedom to find suppliers and logistics providers in different regions. If one area locks down and their regular supplier can’t fulfil their order, sellers can try elsewhere instead of having to wait for local restrictions to end.
Logistics management
Consumers who are stuck at home because of lockdowns or the need to shelter rely heavily on online stores. They rely on eCommerce sellers to deliver vital supplies and medication on time, and if they can’t trust one merchant, they’ll go elsewhere to find one that they can.
Logistics tools, together with IoT sensors and tracking devices, help online sellers to follow the progress of their stock and trace last mile delivery more accurately. They can also make sure that fragile or perishable items are handled carefully and arrive intact and in good condition.
Online retailers can then give their customers greater transparency into deliveries, giving them confidence that their order is on its way.
Inventory management and order handling
eCommerce businesses in every category needed to upgrade their inventory management and order handling capabilities. No one wants their system to be overwhelmed by too many people placing orders at the same time.
Equally, it’s important to for businesses to keep themselves well stocked with high-demand items so that they don’t run out at the wrong moment. AI-based inventory management tools notify when stock starts to run low and can automatically place new purchase orders when stock reaches a certain level.
Demand prediction
Although eCommerce in general saw an uptick in demand, there have been huge fluctuations in different categories. For example, interest in luxury goods dropped dramatically while home exercise equipment soared. People panic-bought household staples like toilet paper, but only for a short period of time. Online sellers had to keep on top of rapid changes in demand in order to succeed.
Advanced analytics tools help online sellers forecast the next new trend before it breaks. With better demand prediction, online sellers can avoid overstocking on the wrong products and respond swiftly to demand for new items.
Supply chain organisation
Online sellers had grown used to relying on “just in time” shipments from global suppliers, but coronavirus made that impractical. As the coronavirus moved from country to country, it caused serious disruption to supply chains. With fewer flights, it was harder to send products by air, and local shutdowns often closed ports and created a backlog for shipping.
Better visibility into the entire supply chain means that eCommerce business owners can make supply chains more resilient and diversified. They can identify weak links and strengthen them before items get stranded in an overseas port for weeks. Dropshipping platforms also help online retailers quickly find alternative, geographically closer suppliers for sought-after products.
DIY eCommerce platforms
A large number of small businesses pivoted to sell their products and services online when coronavirus hit. Intuitive, user-friendly DIY website platforms like Shopify, Wix, and WordPress with simple plugins and addons helped SMB owners to move online quickly. For example, many farmers started selling produce using online to offline and curbside pickup sales.
New tech helped online sellers make the most of coronavirus opportunities
Coronavirus has helped boost sales and revenue for eCommerce businesses, but it has also produced a number of new challenges. eCommerce technologies for logistics, demand prediction, cross-border payment solutions, supply chains, order handling, and inventory management help online sellers to seize the new opportunities and overcome the difficulties to increase profits and improve their bottom line.
[1] See: https://www.ft.com/content/94b00a94-3de2-4b92-baec-a2c2ed31bbe9
[2] See: https://www.theguardian.com/business/2020/nov/27/big-fall-in-black-friday-uk-retail-sales-despite-online-spending-boom