Social-distancing measures and lockdown have completely changed the way we shop. While many businesses have struggled and had to adapt their business models to cope with being unbale to facilitate face to face transactions, others have either set up, or put backing behind an ecommerce platform.
The buying habits that have been changing are unlikely to suddenly shift back to what they once were, even after rules are relaxed and the world returns to a more normal state. Because of this, now is the time to bet on ecommerce, and not as a temporary measure, but for good. Its future influence will be far greater than it has ever been before, and the potential growth it could bring your business makes it a worthwhile investment.
The Ecommerce Boom
While marketers have been pushing the potential in the growth of ecommerce for years, in reality, it has always been in the minority of retail sales as a collective. Globally, Statista reports that ecommerce made up just 14.1 percent of volume. So if only 14.1% of purchases are in ecommerce, what is all the fuss about?
The large-scale closing down of the physical shop economy, even temporarily, has dramatically altered the picture of what retail is now.
Retailers with a strong ecommerce platform in place have seen their in-store sales replaced or enhanced by digital purchases, meaning retailers that haven’t got an ecommerce platform are not only missing out but may lose permanent custom when physical retailers reopen to a full capacity.
The Irreversible Change of Ecommerce
While some believe that these shifts are only temporary, consumer polling indicates that this shift to ecommerce might be here to stay. Buyers enjoy the convenience of online shopping, especially within the younger generation, with many will still be reluctant to return to old shopping habits even after restrictions are removed.
While the reasons why someone prefers digital shopping may vary from person to person, the end result is the same- revenue and conversions for ecommerce sites. Retailers that do not have an ecommerce system in place could lose significant revenue in the years to come as buyer habits become increasingly digitally focused.
The Rise of Social
As more brands shift to a digital-first strategy in an effort to weather the storm, online acquisition channels are thriving, with total messaging increased on Facebook by 50 percent in countries experiencing significant coronavirus issues.
It’s not all good news, though, as the social media giant is expected to lose money from industries that are affected dramatically, such as travel companies who are pulling back on their advertising budgets. However, this is creating opportunities for other brands to step into the same advertising space and market their products or services to a broader online audience.
History shows, however, that continuing to advertise during a recession can have really big results.
In the late 1920s, Kellogg and Post were in tight competition for dominance in the breakfast market. Then, the Great Depression hit. Post then did what many companies in affected industries are doing now: It reduced expenses and cut back on advertising. But Kellogg doubled its advertising budget, moved aggressively and dominantly into radio advertising, and heavily pushed its new product, Rice Krispies. By 1933, even as the economy faltered and fell Kellogg’s profits had risen almost 30 percent, and it had become what it remains today: the industry’s dominant cereal provider around the world.
In the modern-day industry, a similar equivalent to entering the radio space would be a company investing in SEO (Search Engine Optimisation). SEO is a fantastic part of marketing in the ecommerce space and is often an essential investment. Many try to do their own SEO for ecommerce sites such as Shopify. “Learning the basics can help you see some basic organic results, but investing in experts who can undertake keyword research and suggest the best bespoke strategy for your site will generate some great results in organic searches around your products” says Michael Ryan, CEO of MR SEO, an SEO agency in Essex.
Strong marketing on digital platforms will allow entrepreneurs to reach audiences where they are currently spending their time, and stand out and thrive during a time of less competition.
How Recession Can Fuel Opportunity
As lockdown measures were put in place, many businesses turned to the furlough scheme to survive. For others, even this wasn’t enough and they were forced to make redundancies. With an unemployment of 4.9% according to a BBC study, there could be a positive outlook to take from it.
While this certainly paints a depressing picture, it is also worth considering how the extra time — and the lack of other commitments — are creating new opportunities for entrepreneurial-focused workers. This meant many people who had a secondary business or hobby now had the opportunity to put full focus into it.
Whether the result of opportunity or necessity, the increased entrepreneurial spark will lead to disruptive businesses that might never have existed previously.
Savvy entrepreneurs are examining the opportunities and market openings that are emerging. If they understand the importance and emergence of ecommerce, we can expect to see many more digitally focused businesses in the future. This, in time, could generate a major market disruption and change of course in the next few years.
Preparing for a Digitally Prioritised Future
While ecommerce entrepreneurs haven’t been entirely immune from the pandemic and lockdown rules that followed, the overall impact has clearly accelerated our transition away from a physical retail space. By making an active investment in ecommerce now, you will be better positioned to achieve successful market results in the future, so a solid ecommerce platform, specifically optimised with SEO, whether that be by yourself or an agency, is a worthwhile investment.
