Category: eCommerce

It is rightly said that one must prepare for the worst and we are not sure that the pandemic which is hovering upon is the worst or something bigger is yet to come hence; a business plan is a must to survive even the toughest times.

Like the coronavirus outbreak, disasters can happen anytime, they are difficult to predict and have the potential to cause damage that may take years to recover too. Therefore, to sail through such situations, as a business owner, it is necessary to have a business continuity plan designed keeping in mind such disasters to keep your sales going and stay prepared for exceptionany kind of future risks and eCommerce business is no.

Also Read: Consumer Behaviour After COVID-19: Will eCommerce Demand Remain the Same?

With restrictions and lockdowns lifted and businesses resuming back to operation, now is the time to rethink about your business strategies and prepare for the worst, yes, something worse than the current pandemic can happen anytime and, there are some strategic steps you can take to recover business and revenue streams if anything happens about which we are going to elaborate. But first, let’s understand what a business continuity plan.

Business Continuity Plan

Unlike offline businesses, although eCommerce didn’t experience a complete fallout during the pandemic, it still needs a business plan to survive any kind of uncertain and challenging times. A business continuity plan is nothing but a framework which identifies potential external and internal threats that can threaten the company and outline protocols and procedures that ensure the continued functionality of the business  — or restore them as quickly as possible — in the event of a major disaster, whether it be Meteorological (tornados, hurricanes, flooding, wildfire), Geological (earthquake, tsunami, volcano, landslide), Biological (infestation, pandemic), or Human Factors (accidental, intentional).

Business continuity planning isn’t just an extra effort, it is, in fact, a must-have for all small, medium, and large-scale enterprises to act instantly, smartly, and efficiently in times of emergencies and minimize the negative impacts like financial loss, loss of consumer (and team member), confidence, and brand reputation etc. when any disaster strikes. A BCP covers all aspects of the business, including human resources, infrastructure, technology, contracts, and communication and hence is something you must not avoid if you want a safe future for your business. Now, let’s see what steps you can take to prepare for the uncertain future ahead.

1. Map out objectives and goals

To keep your eCommerce business running you need to rethink about everything from business functions, human resources, operations, public relations, to technologies since the COVID-19 infection has changed everything around us. Identify your goals and objectives as they will guide your risk assessment, the business continuity planning process, business impact analysis, and potential recovery strategies. Keep improvising and reviewing your plans according to the changing circumstances and have a backup plan ready to face any crisis.

2. Coordination is key

Running a multivendor eCommerce marketplace solution means you might be having employees working from home or warehouses, customer support team, stakeholders, vendors etc. with whom communication and coordination are crucial for your business to run smoothly. Therefore, you must leverage technology to stay connected and coordinate with all. Make use of online conferencing apps such as Zoom, Skype, and Slack, especially during the present situation, to ensure coordination and productivity is maintained.

3. Set up an emergency team

Too many cooks spoil the broth, you might have heard this proverb which means that instead of too many people getting involved in handling any emergency and creating chaos, establish a dedicated emergency team for your business. Assemble a few cross-functional managers or leaders, and train the necessary staff to keep things moving forward and make decisions when necessary.

4. Make a list of essential eCommerce business functions

As experienced during the lockdown, eCommerce platforms were temporarily restricted from selling any kind of non-essential items due to which online business of fashion, beauty products, etc. faced a tremendous loss. Therefore, it is important to contact marketplace solution provider to figure out how you can maintain the sale of essential services/functions in the event of an emergency. By essential we mean your:

Inventory management and supply continuity – as during a crisis people tend to buy and stock products hence your inventory must survive to serve them.

Order fulfilment and shipping deadlines – as meeting customer orders during any unfortunate event are not easy. There might be some issues like shipping delays which are out of your hand. But you can prepare an alternative option to keep up your delivery even during the crisis.

Ecommerce platform functionality – as people will rush to online shopping more when it becomes dangerous to go outside and hence; your online store must be able to function smoothly and should be updated as well. Like it must be able to handle heavy traffic, display out of stock products, have strong cybersecurity, etc.

Customer service – as customers are prone to panic during a crisis, and they may need you anytime to know about the products and delivery of their orders. Prepare your customer support team specifically to handle customers during such situations.

5. Be flexible in your strategy

Remember that when crisis strikes you may have to change your approach and adapt according to the circumstances and therefore you must design your strategies such that they are flexible. Like you may have to add up essential items for sale if needed during the emergencies, adapt to customer behaviour changes, deliver as per the situation of location, etc.

6. Innovate with time

You must innovate or deliver according to the scenario and demands. For example, if you are simply an online fashion store owner, you must include the sale of masks which are much needed in the present times. Likewise, whatever emergency arises, you must try to innovate or include products that are necessary for that particular crisis in order to help customers as well as for your business continuity.

7. Make your communication strong

Running a multi-vendor marketplace solution means you have customers, employees, suppliers, creditors & investors, and government and regulators to communicate with, which means during a crisis your communication with all has to be clear, transparent, and timely. So, invest in technologies or update your software so that your communication does not get affected during any unfortunate event.

Conclusion

Consider the COVID-19 pandemic as a lesson and take this time to make necessary changes, update your business operations in response to the shift in customer behaviour. In addition, compel features in your store that customer expect with the help of marketplace development companylike mobicommerceto keep your business standing and surviving during the hardships.

For any business to survive the competition, strategies are required to be applied timely, especially, when the time is turbulent like at present due to the COVID-19 situation. Strategies are a must and the sector of a multi-vendor eCommerce business that needs such strategies the most is – the supply chain management (SCM).

What is Supply Chain Management (SCM)? 

One of the most challenging divisions of a multi-vendor marketplace solution is its supply chain which is the handling of the entire production flow of a good or service — starting from the raw components, product development, sourcing, production, packaging and all the way to delivering the final product to the consumer and even collecting returns, including the information systems needed to coordinate these activities. It is a network of suppliers (“links” in the chain) created by the company to move the product along from the suppliers of raw materials to those organizations that deal directly with users in order to maximize customer value and achieve sustainable competitive advantage.

Why is it important? 

Supply chain management is an effective way to minimize cost, waste and time in the production cycle. It helps you keep your inventory in check and meet the needs of the demand-driven customers. With supply chain management; you can identify potential problems like shortage of products before the buyer gets disappointed, adjust prices according to the season and demand, and improve your delivery promise.

Now let’s understand the eight supply-chain strategies that will help your eCommerce business thrive in the current environment.

1. Plan your business based on demand-driven customers

Online business has scaled up during the lockdown period due to COVID-19, and hence there is no pause in the demands of customers in online stores. In fact, during the lockdown i.e. from March to May, many online retailers experienced disruption in the supply chain due to sudden surge in demands. Therefore, you got to structure your supply chain accordingly. Make use of powerful digital tools like Artificial intelligence technologies and internet of things (IoT) networks to act quickly and get real-time insights to meet the demand as soon as possible.

2. A resilient and agile supply chain is the key

How faster and better can you deliver is the only point of focus in today’s competitive world. Adaptability, speed, risk reduction, and sustainability, these are the key points companies today are paying attention to more than anything as customers have various options, and they don’t have to wait for you. Your supply chain got to have greater operational speed and flexibility in order to thrive in this new reality.

Adopt emerging technologies like cloud-based platforms to link your financial and materials-planning tasks to business-execution activities such as procurement, manufacturing, and inventory management, or methods like adopting more flexible sourcing and distribution strategies, including shifting to suppliers that are closer to home, engaging with customers in new – often virtual – ways, omnichannel ordering and fulfilment, etc. will help you sail through amid an ever-changing market landscape.

3. Innovate to grow

Customers look for variety in everything be it products or services, and if they are getting the same monotonous experience from your end, they will move on to others, therefore it is important to keep experimenting and innovating new practices also as per the current market. For example, Swiggy started delivering groceries and other essentials other than food delivering. Therefore, you can consult ecommerce solution provider who can help you in simplifying supply chain activities right from product procurement to product delivery.

4. Expand your fulfilment centre to lower shipping costs & delivery time

Faster delivery and lower shipping costs are what you and your customers desire; therefore, in order to achieve this common goal, a multi-FC strategy is the best approach. Expanding your facilities, inventory, staffing, and management will help you deliver to more customers nearby that area; quickly as well as at low shipping rates.

5. Scale up the number of picked orders per day

One of the most laborious tasks is order picking and delivering it accurately, and timely are keys to a successful eCommerce and customer experience. Improve your order cycle time, reduce replenishment trips and reduce put-away and picking time by slotting your order effectively. A fully automated order slotting method can provide high ROI, but not everyone can afford that. Try improving your storage capacity, opting for locations that are easier to pick from, separating similar products or SKUs that could be mis-picked etc., to increase your number of picked orders.

6. Optimize product design and management for supply, manufacturing, and sustainability

Considering product development and supply-chain planning as separate functions can be one of the major roadblocks in your order fulfilment. Merge design teams with supply-chain planners on a single (usually cloud-based) platform to speed up the process. Moreover, this kind of collaboration, as well as smart procurement practices such as supplier prequalification will help product developers source the right components upfront, based on factors such as parts availability, quality, and cost and will help you gain faster time to market, greater product revenue, and reduced scrap and rework expenses.

7. Embed sustainability 

There are environmental and social consequences behind every supply chain management process like carbon emissions of transportation networks, industrial waste from factories, ethics practised by suppliers, etc. Therefore, a sustainable supply chain practice is important in today’s time from guiding decisions ranging from product design and factory floor configuration to sourcing and logistics.

Some of the strategies to optimize supply chains for sustainability are:

• Developing long-term targets to bring down the company’s carbon footprint, energy usage, and improving recycling efforts.
• Deploying new technologies to ensure responsible environmental practices such as altering truck routes to reduce fuel consumption and carbon emissions.
• Applying a shared data model to provide end-to-end visibility and real-time insights.

In a nutshell

The competition is getting fiercer every day, and with people switching to online shopping more after the lockdown and due to the scare of the COVID-19, strategies are a must if you want to survive and keep going. Apply the above-mentioned strategies, and you can see a significant difference in yourb2b ecommerce software solutionsfor sure.

Do you buy cloth on the spot? No one does. We all check out its colour, design, fashion, and the most important – defects before making a purchase, then do you think people will buy from your online cloth store if it has defects?

By defected we mean running your online store on a cheap platform, lacking necessary features and having no quality photos or designs. You may wonder who runs an online store like that but guess what? Many startups do make this mistake in order to save a few bucks.

Starting an online clothing store may be your dream and just because it is your startup; doesn’t mean you find the cheapest way to do it as it will, in turn, cost you a lot. The common mistake that many startups make is – compromises. “It’s a startup and we are low on budget so, anything will do,” mindset is what made many entrepreneurs fail before they even begin. Never ever go for cheap ways to run an online store especially when the competition is cut-throat.

Remember, unlike offline shops, online stores cannot give a live experience of clothes while shopping and hence how you create your web store becomes very important as that experience will decide the fate of your business. Which is why the selection of platform for your online clothing store is the most crucial decision you must make if you wish to deliver an experience that your customers will genuinely love.

For an online clothing store to be successful, its platform must be highly customizable with advanced shipping and CRM integrations, have all necessary features and should come with merchandising capabilities. Additionally, it must offer a secure payment gateway and a straightforward returns and exchanges policy as well as an efficient back-end system for your convenience. Since the market is flooded with various platforms like Magento, Shopify, WooCommerce, Opencart, BigCommerce, Volusion, Stitch, 3dcart, WIX, and PrestaShop, it is quite normal to get confused and pick one that meets your requirements and budget. So, here’s a guide to picking the right eCommerce platform for your clothing store.

1.  Magento

When it comes to having a flexible and highly customizable platform, Magento is the name that appears the most and is the best. Many premium brands like Alternative Apparel, Paul Smith, and End Clothing are running on it as Magento serves everything that an online store requires to be successful.

It can handle significant traffic with ease and comes in various versions both; free and paid to suit different businesses like:

Magento Community Edition – a free, open-source platform, ideal for SMEs.

Magento Enterprise Edition – a paid version with advanced capabilities such as personal discounts, customer segmentation, and others, ideal for fashion giants. Some of the in-built features that Magento eCommerce platform offers you are:

• eCommerce SEO
• Mobile commerce
• Superb customer experience
• Multi-store management
• Persistent shopping cart
• Sleek and interactive template designs

 Also Read:Benefits of Building a Marketplace Using Magento

2. PrestaShop

A freemium, opensource eCommerce platform, currently used by 300,000 shops worldwide and is available in 60 different languages can work wonders for your online fashion store. It comes with a wide range of free and paid Prestashop Addons, extensions that you can integrate to improve the functionality of your PrestaShop store. Hire a prestashop mobile app builder if you want to unleash the complete power of it. PrestaShop gives you:

• More than three hundred built-in features
• Numerous integrations
• Wide collection of themes & modules
• Excellent support materials and documentation
• Strong user community

3. WooCommerce

An open-source e-commerce plugin of one of the famous content management system – WordPress, WooCommerce is not just successfully used by such brands as Poppy Barley, Thief and Bandit and Hackwith Design House etc., but over 3.8 million websites around the world are currently running on WooCommerce. By adding additional plugins and extensions you can make your PrestaShop even more capable for your online fashion store. With PrestaShop you get:

• A user-friendly back-end system
• The worldwide community of developers for the problem-solving
• Zero fees per sale
• Complete control over setting up, hosting, security, maintenance etc.

4. Shopify

One of the best eCommerce platforms for beginners, Shopify is simple to navigate and fast. Bead and Real, Baggu, Skinny Dip, Kylie Cosmetics, and Bootea are some of the brands that are doing great on Shopify. It comes in several additions to serve businesses of all sizes.

To customize Shopify, you don’t need any design skills. It loads faster and hence can easily help you gain a position in Google ranking. Some of the highlights of Shopify are:

• A comprehensive dashboard
• MailChimp integration
• Content, guides and 24/7 phone support
• 100+ free, fully responsive store themes
• Excellent shipping options
• Commendable SEO features

5. BigCommerce

Giving a tough competition to Shopify, BigCommerce is blooming and becoming the next favourite of entrepreneurs as it promises to serve as an excellent eCommerce platform. It has various pricing plans to choose from and comes with features like great analytics, hosting, amazing security, an in-person point of sale, social media selling capabilities, a considerable number of apps, and excellent design options. BigCommerce woos you with:

• A library of 80 free and paid themes
• Built-in shipping quotes, gift certificates, and product reviews and other components
• 24/7 Email or Chat support.
• Option to connect your shop with mega-marketplaces
• User-friendly admin panel
• 15-day free trial

Things to keep in mind while selecting a platform for your clothing brand

• Select your platform as per your target audience as the sole purpose of your store is to please them.
• Pay attention to your theme selection as it is the theme that does the job of attracting customers.
• Ensure the platform has customization options as you may have to customize shopping cart, checkout page, product detail page, and more according to your products.
• Lastly, check upon its integration capabilities. The platform must be able to integrate seamlessly with systems such as ERP, CRM, or others streamlines business processes and boosts productivity.

So, which is the Right eCommerce Platform for a Clothing Store? 

A definite answer cannot be given to this question as all the platforms are best in their own way and must be selected according to your business size, strategy and the number of products. All of the above is suitable for fashion eCommerce and hence focus on picking up the right magento development company who can build your online store in a way that it attracts and sells.

Does product return in eCommerce mean business failure? Well, not entirely as there is a scope you can turn it into an advantage by applying the right strategies.

What people mostly love about online shopping is that they get the products at their doorstep and they can check and verify and if something is not right, return and get a refund. Unlike in offline shopping, where if the product is faulty customers don’t buy at all, in online it is only when the product is received one can know whether it is proper or defective, therefore, customers today check out for the return and refund policy of an online store more than anything.

As per the survey of Comscore, 85% of customers would not return to a company with a difficult return process which is why retailers are ready to offer free and easy returns to attract customers. In fact, they deserve it because customers shop without having the benefit of touching, tyring-on or experiencing the product the way in-store shoppers would. Easy returns make shoppers buy more as it gives them the advantage of keeping it if everything is alright or return if not.

Although the returns are easy and beneficial for the customers, what does it mean to the retailers? Does it mean their business is a complete failure? Well, don’t lose hope as the eCommerce returns can, in fact, be an opportunity for competitive advantage. How? Let’s understand.

Returns are a critical element of the brand promise for some companies like for example Zappos – an online retailer of shoes and apparel, consider its one year, free-return shipping policy as a key to building customer loyalty. They actually encourage customers to buy two sizes of shoes so that the customers get one pair of a perfect fit. Even though their reverse logistics strategy is driving up return volumes and shipping costs; they are getting regular and more sales overall.

So, first of all, it is up to you to decide whether you want to deal with returns or not and if yes, then what you want to do with the returns as there is a whole lot process behind it. From collecting the return, evaluating and re-packaging, up to deciding whether to transfer it to a different DC or channel, return it to vendor or scrap based on its condition. Now, let’s move to understand some tips to flip your ecommerce returns into a competitive advantage.

1. Define your returns 

All returns are not the same. Your eCommerce might be selling a pin to an aeroplane, and you might not want to waste your time, money and resources behind the return of a pin. What we mean to say is determine for which products you will be offering returns as for a small product, the hassle behind return will cost you more than the value of the product.

2. Make returns easy & convenient

Your return policy must be clear and the process should be easy. Customers prefer the return to be picked up at the doorstep more than sending it all by themselves. Therefore, make it easy and convenient for customers to return the product than asking them to repack and send back to you.

3. Measure and manage returns 

It is very much important to measure your returns to manage them as well as to figure out the cost structure for returns. Think upon what per cent of returns can you salvage? What is the cost per unit handled in the returns process? What is the margin impact? What categories, vendors, customers, etc. have the largest volume of returns? etc., to mitigate the need for returns.

Try to eliminate the problems that are causing the return like provide proper fit information with a chart or diagram in the product description to avoid returns due to sizing. Add some high-quality images of the product with a clear-cut zoom option for customers to explore the product in detail before buying. Ask for customer feedback and reviews so that other customers can look up and buy based on their experience to avoid unnecessary returns. And the most important; deliver what you are showing as a majority of returns happen with a customer complaining that they received nothing like the product description or the displayed image.

4. Practice sustainability

Ensure your original shipping material is used for returns. Ask customers to return the product in the same package they received it as it will reduce the cost of resources used as well as reach back to you quickly.

5. Make navigation of the return process seamless

Customers use multiple platforms to shop and hence giving them a unified experience in all devices and platforms is necessary. Make navigation of the return process easier in both website and mobile app so that customers can opt for a return anytime from anywhere.

6. Consider free returns and other options

Of course, customers expect free returns but, every retailer cannot afford that, therefore; plan out your return policy or other ways like giving the refund but charging return shipping, or waving off return charges but asking them to drop the return at some store or a courier company.

7. Gather information and keep communication clear

First of all, be clear about your return policy and display whether the product is returnable or not as it happens; many of the customers’ shop and complain they had no idea it was non-returnable. Also, gather reason for return. You may add a small questionnaire to fill up what went wrong so that you can work on it. Moreover, keep them informed about when the return will be picked up and provide them with details about their refund so that they stay loyal and continue shopping from you.

Final thoughts

Running an eCommerce store is not a piece of cake. You need to apply strategies so as to survive the competition, and your returns that you think is causing you a downfall can actually be turned into something beneficial if done right. Simply, approach an experiencedeCommerce development company like Mobicommerce which is now in the limelight as one of the best eCommerce solution providers in the Middle Eastto get an effective store developed for you.

In earlier times, customers were there where your sales are, but today, the time has changed, and you have to be there where your customers are. Confusing? Let’s understand it better and deeper.

When the technology was not so much advanced, all you have to do was to open your offline store and customers approached you for shopping but now, you not only have to be there offline but also on multiple online platforms on which you can not even guess your customers are, therefore, multi-channel presence and retailing is today the key to survival.

Customers are becoming so tech-savvy that they now are very well aware of the range of options they have to shop before settling for anything that bumps into them. Therefore, for an online retail business to stay alive and running, retailers must think about multi-channel retailing right now. But, what exactly is multi-channel selling or retailing?

Multi-channel Selling

It is a good thing to start your selling journey with one platform like setting up a shop through a website or marketplace but, you don’t need to be loyal to just one platform – instead, you must spread your selling across multiple channels eventually if you really want to bubble up your sales.

Multichannel selling is simply the process of selling your products on more than one sales channel. You can put up your products for sale on various touchpoints like your website and shopping cart (e.g. Shopify, Magento and WooCommerce), online marketplaces (e.g. Amazon, eBay and Etsy), mobile marketplaces (e.g. Wish), social media (e.g. Facebook and Instagram), comparison websites (e.g. Google), and bricks and mortar (i.e. your high street store).

By introducing multichannel into your eCommerce business model means you can not only explore new channels and expand the company’s approach to marketing, but also provide multiple paths to purchase for your customers. In short, you can be where your customers are.

If you are sceptical about the need for multi-channel selling then look for yourself the stats that show the significance of multi-channel retailing:

• 66% of online shoppers prefer more than one channel for purchases.
• 74% enjoy shopping at large retailers, while 54% find eCommerce marketplaces the best for shopping, 44% choose web stores, and 36% reported shopping at category-specific online retailers.
• It was found that multi-channel shoppers have a 12% greater buying frequency compared to the traditional shoppers who rely only on a single channel.
• Tri-channel (retail, catalog, Internet) shoppers are more loyal customers than those who depend on just one or two channels for purchase.
• 73 percent of retailers agreed that selling across multiple channels is more significant and profitable to them while only 38 percent still stick to a single platform for selling.
• 76% of Prime Day shoppers visit other channels before purchasing from Amazon.

Now, the next thing that comes to mind, of course, will be the benefits. After all, everyone wants to ultimately know the advantages of it and hence here they are:

Advantages of multi-channel selling

Being where your customers’ shop – Allow your customers the freedom of choice in where they buy from you.

Increasing your touchpoints and thus customer base – Customers never buy from the first platform they met you. They explore, research, read reviews, compare etc. before buying and hence increasing your touchpoints means more customers.

Reaching new markets (global coverage) – Even though you start small, make sure you expand your business may be worldwide as it gives you the opportunity to learn about different markets and customers.

Staying ahead of the competition – The competition is fierce in the online market and to stay ahead, expanding your sales on multiple channels is the only way.

Reduce/Diversify risk – Business is unpredictable. Loss can happen anytime. Therefore, depending upon a single channel for sales and profit is risky. Selling on multiple channels will reduce that risk and keep your chances of winning open.

Create a unified experience- By creating a unified shopping and selling experience on multiple channels, you can achieve regular shoppers who keep coming back to you.

Expanding brand recognition and enhancing product visibility – Your presence on multiple channels means people will recognise you and your products more and will subconsciously trust and shop from you.

Why online retailers must start multi-selling? 

Remember that customers never stay at one platform. They keep on exploring and migrating to others in search of offers, convenience, urgency, etc. In fact, before deciding upon a product for purchase they like to visit a range of channels and hence, being present at multiple platforms has become a necessity. Also, on more the channels you are selling, the more is the chance of sales which means more revenue. In short, multichannel selling is the future. When your customers are becoming tech-savvy, you got to up your digital game if you don’t want to be left out.

How to get started? 

You need to follow simple steps to get started with multichannel selling.

Step 1: Fix upon a framework

Various famous frameworks like Magento, WooCommerce, PrestaShop, Opencart, etc. are available with excellent features that can work wonders if you are planning to multi-sell. You can either migrate your online store to any of these platforms or build your multi-channel business from scratch using Magento which is the best-suited platform for it.

Step 2: Select the desired platforms or marketplaces

Platform selection is one of the most important steps for multi-channel eCommerce while for marketplaces, consider the best and trending like Amazon, eBay, Walmart etc.

Step 3: Find a multivendor marketplace solution provider

After fixing upon what you need and how you will need someone to execute it efficiently. Approach an experienced marketplace development company who will help you with your multichannel eCommerce setup.

What to expect? 

With multichannel integration, you can achieve:

• Real-time integration between your online store and uppermost marketplaces in the world.
• Easy product listing on multiple marketplaces simultaneously.
• A single centralized and automated platform to monitor and manage the sales on multiple channels.
• Efficient inventory management
• Smooth order management
• One-click product uploads and deletes from your store to marketplaces in bulk.
• Cross-border business expansion

In a nutshell

Multichannel selling has undoubtedly become a necessity with customers exploring various platforms for shopping. Hence, you got to be there where your customers are in today’s time. If you don’t want to be a seller on a third-party platform, you can get your marketplace developed and get started with your multichannel selling easily by choosing the best platform like Magento which is perfect for multi-channel integration and whose experts you can find at none other than MobiCommerce.

COVID-19 has painted a completely new picture around the world. Nothing is like before, neither our lifestyle habits, economy, nor the consumer behaviour and their way of shopping. Let’s see the scenario of UAE and the current status of eCommerce there.

Digitalization in UAE

UAE or Emirates, with its 9.5 million inhabitants, occupies the second position in the Middle East in terms of the internet penetration rate, estimated at around 90%, one of the highest in the world. It even has the highest smartphone penetration in the world about 81%, and 82% of the total population are active mobile internet users which have led to the rise of online shopping. In fact, the UAE is becoming the fastest growing e-commerce market in the Middle East and North Africa (MENA) region because of the millennials, both local and expatriate who are among the most digitally connected and the most active online buyers in the world. All these stats speak of how UAE is digitally forward compared to other countries.

Ecommerce in UAE: Before and After the Emergence of COVID-19

eCommerce in UAE is growing exponentially ever since it set its foot in the MENA market. At present, e-commerce accounts for 4.2% of the retail revenue in the UAE but is expected to grow by an average of 23%2 by 2022. Amazon’s acquisition of Souq.com and the launch of Noon.com by Emaar Group in 2017 shows Emirates’ serious interest in eCommerce.

If you ask why eCommerce is soaring in Emirates then the reasons are many:

• High internet penetration
• Quick digital adoption by the Millenials
• A large number of tech-savvy Gen Z
• Improved infrastructure
• Successful adoption and support for e-payment platforms
• High investment potential
• Trust in eCommerce and digital payments
• High spending potential due to high per capita income
• Better warehousing facilities
• Increase in consumer demand for e-commerce services
• Market barrier easing
• Full support of government for entrepreneurial initiatives
• Ease of obtaining eCommerce license
• Increased convergence between online and offline channels

Today, with the emergence of COVID-19 around the world, there is no doubt how much the business sector has been affected. The brick and mortar retailers are finding it hard to survive but even many online retailers are suffering from its consequences too. Well, the UAE market is no different but eCommerce during the pandemic saw a sudden rise in the MENA region.

UAE – where the retail sector relies heavily on tourists, COVID-19 and global lockdown posed a grave danger of revenue generation for MENA due to restrictions of movement around the world. But the UAE government had no plans to give up and encouraged eCommerce full-fledged amidst the pandemic. The highest number of business licences about 196 were issued to the e-commerce retail business sector in the UAE itself during May 2020 alone which made the UAE more successful than 30 other economies during the COVID crisis. Moreover, the eCommerce platform saw a 20 % month-on-month jump in shipments delivered from March up till now, and about 300% of the rise in consumer demand was recorded in the first five months of 2020. Overall, there was a rise of 49% in online shopping during the coronavirus outbreak and the need for an eCommerce development company UAE increased suddenly with the offline retailers jumping to online platforms to survive the pandemic.

Also Read: Why Middle East Entrepreneurs Must Make Their Appearance in the eCommerce Market?

Who all are eyeing the UAE eCommerce?

COVID-19 and the implications of the lockdowns have not just fast-tracked the adoption of eCommerce by UAE residents but, have also triggered various brands and entrepreneurs to invest in the UAE market, like how Amazon launched its AWS Data Center in Bahrain as part of its market expansion and CarrefourNow, traditionally a single play supermarket who successfully developed a strong omnichannel e-commerce platform challenging those regional players. Other than that, some of the major e-commerce players in the UAE right now are Careem Eats (previously Uber Eats), Namshi, Mumzworld, eBay, Awok etc.

The changing consumer behaviour in the UAE

The UAE consumers are big spenders and are extremely loyal to their favourite brands. They happily spend around 30% of their salary, or £1,450 a month, on luxury goods. Also, as per the stats, the female Emirati citizens spend 43% of their income on fashion and beauty products. Their luxury mindset also has high expectations from an online business like – excellent customer experience, personalised service, exclusive rewards and benefits etc. Moreover, the UAE has the most multi-culture residents across the Gulf countries as only 19% of the population is Emirati and the rest are the immigrants from different corners of the world. Hence, eCommerce acceptance happened largely and quickly in the UAE.

Earlier, shopping malls dominated the retail landscape because they were an all-in-one package – global products, entertainment, a social experience, and – just as important – air conditioning. Today, due to coronavirus, since it has become necessary to avoid socializing and crowded places, the Middle East consumers are taking a pivotal shift to eCommerce than shopping offline. The searches for “groceries”, “online courses”, “telecommuting” and “Ikea” were seen a sudden surge than luxury products during the lockdown which shows more and more millennials are preferring online shopping and therefore for anyone thinking about starting an eCommerce in the UAE right now can prove to be a good decision.

Don’t miss: The adaptation and evolution of e-commerce in the Middle East during the COVID-19 period

Conclusion

eCommerce is still at a growing stage in the UAE as the residents are habituated to offline shopping, but, due to the outbreak of coronavirus, the scenario has changed. eCommerce sales witnessed a sudden surge in between March and May during which applications for eCommerce licence too increased like never before. Therefore, if you planning to step into the UAE market with your eCommerce solution, the first thing you need to do is to approach an ecommerce development company in Dubai who can help you develop your solution with features that support the localization of the Middle East region like multilingual functionality, RTL functionalities, multi-currency feature, elastic search, inventory management, etc.

eCommerce growth is breaking records worldwide, and Saudi Arabia too, is getting hold of it slowly and steadily. So, will the online retailing be the new normal for Saudis? What are the latest trends and opportunities as an e-commerce retailer of Saudi Arabia must keep watch? Let’s peekaboo.

The Kingdom of Saudi Arabia

Known to be the third-largest in terms of population in the Middle East after Iran and Iraq, Saudi Arabia is home to about 34 million inhabitants. It also holds the second-largest position in terms of the internet user population having a penetration rate of 73.5%, which is expected to hit 91.2% by 2024. It even tops in terms of smartphone penetration rate that is 65.2% right now. Saudi has about 84% of the country covered by urbanized people who have good access to super-fast internet connections. Moreover, a majority of its population are rich, young, and tech-savvy that makes it the most eligible market for e-Commerce offering a huge potential for industry players.

Ranked among the top 20 richest countries by spending power, Saudi is pretty soon going to become an eCommerce hub not just because of its people’s high-spending potential but also due to its government’s going all out to improve digital payments, streamline licensing, and activation of affordable e-commerce enablers. Till now, modernization was the main reason for eCommerce growth in Saudi, but today, with the COVID-19 pandemic that forced us all to stay home, eCommerce witnessed a sudden boom as online shopping appears to be safe rather than going out for shopping risking lives.

Saudis and the eCommerce

Online shopping was not so popular among Saudis until last few years when it began to gain momentum. In fact, just a few years back only the Kingdom of Saudi Arabia (KSA) started to experience a steady shift from offline shopping to online shopping. In spite of being the largest among the GCC countries, KSA’s eCommerce penetration in 2017 was just 1.4% but times are changing, and now it has exceeded 32% and is expected to cross 9 billion USD by 2025.

Although growing at a slow pace compared to the global average (12.5% as opposed to 24.8% worldwide), eCommerce in Saudi is predicted to grab the position of top e-commerce market in the Middle East from the United Arab Emirates. If we take a look at the eCommerce segments then, fashion products lead online sales in Saudi Arabia until Corona arrived, as today, online grocery sales are riding high not just in Saudi Arabia but the entire world.

After fashion products which stood at US$ 1.91 billion in 2017, comes the electronics & media which amounted to US$ 1.85 billion in the same year, followed by furniture & appliances due to the growing number of real estate development. As soon as the government lifted the ban on the use of beauty products, online sales of personal care products sky-rocketed. Other than that, online purchase of games, consoles, music, film, event tickets and travel services doubled in the past few years taking online sales in Saudi to a whole new level.

By payment methods, Saudis depended on Cash on Delivery only (comprising between 69% and 85% of online orders according to various estimates) due to fear of cyber frauds. However, the situation has changed. Now cards and e-wallets such as PayPal, Amazon Payments, Google Wallet, Apple Pay, Mada Pay, STC Pay, and BayanPay are taking over accounting for 24% of all purchases.

By eCommerce marketplace, Amazon, eBay were the rulers in Saudi Arabia due to people’s craze of shopping foreign products. Now, 65% of all online purchases are made from websites based in Gulf Cooperation Council countries like Noon.com, based in the UAE but owned 50% by Saudi Arabia Public Investment Fund, Haraj.com.sa – an online auction website, Waadi.com, and others.

Don’t miss: The adaptation and evolution of e-commerce in the Middle East during the COVID-19 period

Trends to Watch Out in Saudi Arabia

Saudi online shoppers are frequent buyers. According to the Saudi Communications and Information Technology Commission, about 23% of e-commerce customers shopped online at least once every two weeks, while only 3% buy less frequently than every six months. Also, the smartphone leads among devices for online shopping in Saudi Arabia. This indicates that Mobile Commerce will soon become the hottest trend in Saudi Arabia by looking at the pace with which mobile shopping is happening right now.

Many local offline retailers experienced a great loss during the pandemic which has pushed the need for eCommerce solution provider in Saudi Arabia to get their online portal developed. Therefore, the trend of setting up online stores is going to spice up further in the coming days due to cut-throat competition.

Opportunities for Retailers

From brick and mortar to click and mortar

Saudi Arabia offline retail is the strongest but now with many local retailers opting for online presence. Omnichannel commerce has a good scope.

Also Read: Why Middle East Entrepreneurs Must Make Their Appearance in the eCommerce Market?

New and wide customer reach

Since eCommerce in Saudi Arabia is still at its growing stage, it is the best time for those planning to tap into its eCommerce market as not only the government is welcoming and issuing licenses for it but also the demand from Saudis for online groceries and appliances are increasing day-by-day.

Social commerce

Saudis were found to spend on an average of 2 hours 55 minutes per day on social media. There are nearly 19 million social media users having a Facebook account followed by Instagram, Snapchat, etc. While 88% of the total – 21.2 million people use WhatsApp. Therefore, Saudi retailers must not miss the chance of social commerce and make use of these platforms for advertising and promotional activities as between one-third and one-half of online shoppers in Saudi Arabia make purchases from social media sites, according to a survey from early 2017 cited by yStats.com.

The economic recovery post-pandemic

We all very well know how the world economy has affected due to the COVID-19 infection. For Saudis, the two major operations oil export and offline retail business which make the most of the economy came to halt during the lockdown, causing a disruption in the economy. Hence, now is the time for investing in the Saudi eCommerce market.

Wrapping up 

Ecommerce in Saudi Arabia is growing at an impressive rate due to the rise of digital payments, improved logistics, high internet penetration, etc. The Saudis are open to new markets and with the government allowing the eCommerce sector, the time is ripe for those eyeing in it now. The future of eCommerce is Saudi is only going to rise further and hence you better approach an eCommerce app development company in Saudi Arabia like MobiCommerce – who is gaining popularity in the entire Middle East for its eCommerce solutions, to get your online presence developed for Saudi market as soon as possible.

eCommerce is all about buyers and sellers, what a manufacturer has to do with it? If you too are a manufacturer having the same thought then guess what, eCommerce is for you too, and you must invest in it.

eCommerce is like launching your business on the big screen, but whether investing in it will make it a blockbuster or a flop show, is the fear that stops many from getting into it. Ever since eCommerce made its entrance, online business has become a sensation, giving the brick and mortar retail owners a tough time. Everything is available online and which is why it is high time for physical store owners to open up their online presence. But, is it really all about online retailers and customers? No, eCommerce is today much more than just digital retail. Actually, manufactures can see an increase in their sales with a properly designed eCommerce model. So, let’s take a look at the reasons why manufacturers must think of eCommerce investment right now.

eCommerce for Manufacturers

Manufacturers have a wrong notion that eCommerce is beneficial only for B2C selling, while the point they are missing is that in B2B and B2C, one thing is common and i.e. buyer, therefore, engaging in an eCommerce model will give them the following benefits.

1. Direct selling

Manufacturers should not miss an excellent chance to connect directly with their buyers as it can give them a good and complete control over the customer relationship. Doing so will help you kill two birds with one stone – first, it will widen your customer base and second, you can enforce MSRP (Manufacturer Suggested Retail Price — also known as “sticker” price) as you seem fit. By having direct access to customers, manufacturers can also gain faster and direct feedback from them and improve their product offerings and services accordingly.

2. Brand awareness

Nothing can beat the marketing you can get via an eCommerce platform. Half of the marketing of your business is done when you open up an online store as more and more customers will come to know about it. Thus, as your brand awareness increases, your visibility will increase too, taking your business higher in Google search ranking as well.

3. Lower operating costs

One of the best parts about getting started with an eCommerce store is great cost savings, how? Well, it takes half the expense required to set up a physical store and maintain it well than developing a fully-featured eCommerce solution. Moreover, manufacturers can customize their eCommerce solution such that their sales and inventory management between their online and bricks-and-mortar operations can be carried out effortlessly and systematically.

4. Improved and smooth business operations

Manufactures can make use of digital and innovative ways to meet the needs of customers than the traditional ways which take time. By all means, an eCommerce store can help them in becoming efficient in their customer service, marketing, and sales, in reaching out to a wide customer base, in managing sales and orders, in cost savings, in problem-solving etc.

Now, let us take a look at some tips and tactics that can help improve your eCommerce sales

1. Create an engaging online presence

Remember online shopping is on the rise and customers expect an online platform that loads fast, provides the great user experience, is secure and navigates smoothly, etc., therefore, instead of settling for something cheap, choose a professional to design and develop your eCommerce store.

Select an eCommerce platform that can work well for your manufacturing business. Get it developed from scratch or customize it with all important functionalities. Choose/ design a store theme that works for manufacturers. Add product listings and include product descriptions with images to create SEO value and help customers to make decisions.

Try to make your eCommerce site as attractive as possible but also don’t go overboard. Keep it well-balanced with high-quality photos, videos, blog posts, or articles to educate buyers about you, your products and services.

“Don’t miss: Grow your B2B sells by accommodating wholesale eCommerce Platform”

2. Invest in technology

Technologies keep changing hence it is necessary for you to change with time to keep up with the competition. Update your eCommerce site as and when needed, make use of software that can work wonders for your online business, conduct security check regularly and if you have enough budget and want to seek the attention of your customers just like that, try implementing latest technologies like Augmented Reality, Virtual Reality, Chatbot etc.

Recommended blog: Voice Search trends in E-commerce – A next big thing in Industry

3. Include personalisation 

Personalization is what customers want today in everything and you can make use of it in many ways to keep them engaged. Provide personalized catalogs, content, notifications, etc. for the buyers to feel valued and make their shopping experience even more enjoyable so that they keep coming back to you.

4. Improve product search and product configuration 

As a manufacturer, the most important thing on your eCommerce site should be an easy product search feature. Your customers must be able to find spare or replacement parts, tools, or accessories to go with their purchases without any headache or confusing navigation. Related products recommendation or a list of parts or accessories must be visible to them while browsing a particular product. Also, include apps and customizations to allow your buyers to configure products online. If they can add or remove items based on their requirement, budget etc., they will love you more.

In a nutshell 

Online shopping is now a household thing. It is slowly becoming a habit and hence having an online presence has become a necessity if you want to survive the competition. It is not that eCommerce is only for retailers and customers, everyone can benefit from it and so as a manufacturer if you want to attract audiences and serve them well, its high time you get an eCommerce store developed for your business. Therefore, without wasting any furthermore time, get in touch with the now known to be the best eCommerce solution provider in UAE, Saudi Arabia, Kuwait, Oman, Yemen, Bahrain, Qatar – MobiCommerce for your one-stop solution.

Data breaches have since time immemorial been an online merchant’s worst nightmare. Enterprises have lost millions of dollars due to rising data breaches. This post will provide you with seven of the most effective methods to prevent data breaches.

It is quite affordable for anyone who would want to own and secure ecommerce websites. Data breaches have been known to cripple large organizations. They are so bad that chances of getting back on your toes are negligible. Read through:

1. Conducting regular audits on security stature

These audits reveal so much. They show the state of preparedness in the unfortunate event you suffer a data breach. They also show if you are complying with the government protocols in preventing these attacks for online businesses or organizations.

Additionally, these audits help you revisit your security and log monitoring setups. They also seek to find out if you have network security mechanisms ready. Such may include firewalls.

There is so much that these security audits help unearth, and you cannot afford not to carry them out because they will assess the level of preparedness in case you suffer an attack.

2. Train your staff on safe cyberspace practices

There are so many laws about cyber security. They are both international and those at the national level. Your employees need to be conversant with all of these so they can effectively prevent a data breach.

Your employees are at the forefront of the war against cyber theft. They are your frontline soldiers, so you should equip them with the relevant skills. Some of the things you need to train them on is:

• How to curate unique passwords on their user accounts
• Importance of reporting suspicious online activity
• How to maintain a sound document system

3. Have an SSL certificate

Having an SSL certificate is a must-have for ecommerce sites if you want to get a good search engine ranking. They give you a list of merits if you use them to encrypt your websites. In recent times, most search engines have started marking websites without these certificates as unsafe. They tell visitors not to visit those pages, and this can spell disaster if you are an ecommerce store depending on your website.

If you wish to secure unlimited sub domains, then wildcard SSL certificate is best among all. Most ecommerce sites have multiple sub domains. This single certificate enough to secure your site and all its sub domains. . This means you save more.

4. Have in place an asset inventory

Knowing what software and hardware are at your networks’ disposal and keeping tabs on each of them is the first step in preventing a cyber-attack. Further, you need to assess each of them and discover the weakest point in preventing any attack.

This will provide you with a better understanding of the state of preparedness your security system has. You also need to set up categories and ratings around the threats that your assets may encounter.

This will help you get a clearer picture of your weak points.

5. Limit access to sensitive data

It is always wise to limit the people who have access to the valuable data you own. The fewer people have clearance, the better for you. It is because you do not know who is on your side. After all, what is the use of a mailroom employee gaining access to important accounting information?

This is necessary if you want to reduce the pool of people who view a document and reduce the chances of an employee clicking on a malicious link. It is just common sense.

6. Carry out updates on software

Carrying out updates is a simple task that often does not require much expertise. However, many people tend to overlook the importance of updates. They contain the latest version of every function, including the security aspect of the software.

Hackers will look for the weakest point to breach your website, and they might find a loophole in an old version of anti-virus software you are using.

Microsoft has recently unveiled a new program called Baseline Security Analyzer. It runs scans on all software you are using and tells you which one to update.

7. Ensure all third-party vendors comply

Many companies outsource merchandise from third parties. They are often a weak security link, and they can prove to be disastrous if not properly managed. You must curate a protocol for all third parties to comply with, failure to which there will be consequences. If the third parties must access your sensitive data, make sure they maintain a certain level of transparency while conducting their business.

Wrapping up

An SSL certificate will save you the trouble of having to go through a data breach. The chances of getting through one successfully are quite slim. You should also remember to limit the number of people getting access to your valuable data. This is a good tip. Your employees are your frontline soldiers; they either make you or break you. Give training on cyber security awareness.

Only technical measure are not enough. Taking the support of eCommerce Development Company who has the avid active back-end and front-end support developers with profound expertise in dealing with various security aspects of any online storefront irrespective of the multiple ecommerce platforms can also help to cope up with eCommerce security threat.

Tap yourself on the back if you are planning to start/expand your eCommerce business in the Middle East because the time is ripe and you can reap sweet profits out of it.

eCommerce in the Middle East is slowly flourishing like a creeper. Inspired by the eCommerce hubs like the United States or European markets, the Middle East and North Africa (MENA) has started to embrace eCommerce and the growth is clearly visible from the stats.

Back in 2016, where about 90% of online purchases were made from foreign businesses, today, the e-commerce in the Gulf States alone is estimated at around $20 billion and may reach $48.8 billion in 2021. eCommerce is opening the doors of opportunity to countless entrepreneurs who are now into selling everything from shoes and clothing to mobile phones and home appliances in MENA.

Also read: The adaptation and evolution of e-commerce in the Middle East during the COVID-19 period

Why to Sell in the Middle East?

The Middle East has one of the youngest populations in the world and it is the youth who make the most of the online shoppers. With almost all major countries in the Middle East – Egypt, Iraq, Lebanon, Morocco, Oman, Tunisia, Jordan, Algeria, and Saudi Arabia, having more than 28% of the population aged between 15 and 29, eCommerce has the benefit of high spending youth consumers due to high per capita income as and smartphone usage.

Apart from high internet and social media penetration, another favourable thing that makes the Middle East eligible for eCommerce is the support of the government who is putting every effort to make the Emirate more attractive for e-commerce companies. In fact, the government have started many initiatives like CommerCity, located right next to the Dubai airport, which is a $735 million project that’s dedicated to eCommerce, and Dubai Internet City, which is aiming for expansion. In short, when the government and citizens are welcoming the online businesses, eCommerce in the Middle East is the step you must take without any further ado.

What to Sell in the Middle East?

When it comes to selling, you cannot just open up any business and expect it to be a success. Even if it’s an eCommerce you are starting, it should be done keeping a few factors in mind like what products or services you want to offer to consumers? What do the consumers need? Where all you want to serve? Will the demand for your products stay for a long time or will it be short-lived? Is the logistics available? Does the target audience have the potential to spend? As all such questions decide the future of an eCommerce store. Now, let’s take a look at what’s hot in eCommerce right now that have a good scope in the Middle East now.

Middle Eastern Gulf Countries fall under the top 34 wealthiest nations in the world with Qatar known to be the wealthiest country in the world having a GDP of $116,799 per person. Middle Eastern consumers love spending on luxury products. With the majority of the population be the youth and a significant number of women in the UAE who prefer to shop online, eCommerce business is bound to prosper in the Middle East.

Considering the consumer behaviour in the Middle East, the top e-commerce business ideas for 2020 are:

1. Fashion/Jewellery Products
2. Smart Home Products & Accessories
3. AR/VR Headsets, Apps & Accessories
4. Vape Hardware, Flavours & Liquids
5. Online Learning Platforms

How to Sell in the Middle East?

• To get started with an online business in the Middle East, you need to first know about the laws and regulations of the nation and comply with it.
• Next, get into the market research. Is there a demand for your product? Hows the competition for the same?
• After deciding upon your business, find a secure supplier to meet your customer’s demands both now and in the future.
• Next, decide upon whom you want to sell? Do you want to sell directly to a niche community or go global?
• Then comes narrowing down a few details about your products like where will you store them? How will you distribute them?
• After that comes the most crucial part, approaching an eCommerce development company in the Middle East who can develop your eCommerce solution such that you can carry your business without any hiccups.
• Once you have answers to all of the above, consider setting up your trade license so as to legally operate and conduct business in the region.
• Got the license? What about payment? How are you going to collect money from your sales? Open a commercial bank/merchant account and arrange an online payment gateway.
• Last but not least, start marketing. It is important to market your e-commerce business by setting up social media accounts, organising photography, PR, trade samples, focus groups, advertising, testimonials etc. to grab the attention.

How’s the Future?

Although not quickly and effectively like foreign countries, MENA is slowly entering the third phase of digital adoption. With highest levels of the Internet, smartphone and social media penetrations, MENA consumers are getting ready for eCommerce. They have started searching for products and offers online and are taking high interest during key seasonal shopping events.

Over the past couple of years, the growth trajectory of eCommerce in MENA has seen a sudden surge which is going to keep gaining momentum due to people and the government of the Middle East encouraging eCommerce business whole-heartedly. Moreover, with the expansion of the middle class, the growing role of women in the workforce, improvements in logistics, and access to online products in Tier 2 and Tier 3 cities, the e-commerce market in the Middle East is expected to grow 3.5 times by 2022, achieving a total market size of $28.5 billion and a penetration rate of 7% of total retail sales without a doubt.

Wrapping up

Yes, eCommerce in MENA is still at the development stage, hence; there are a few challenges that can hinder your eCommerce growth but if taken care, there’s nothing to be worried about. For example, make sure you have secure payment gateway options as about 62% of MENA consumers still prefer cash on delivery fearing online fraud. Next is the long shipping and delivery times in the Middle East. To keep going, is it important to cooperate with local suppliers for fast and smooth logistics. Lastly, is the language localization, meaning, you need to have a clean and readable site in both Arabic and English languages to reach every corner of the Middle East.

In short, if you are eyeing the Middle East market for your eCommerce business, then don’t scratch your head any further, the time is right, the scope is good and when Mobicommerce – known to be the best eCommerce solution provider in the Middle East is there, just jump in, your eCommerce venture will rise and shine.

Coronavirus, the name we have been hearing since the start of the year 2020 till today has turned our lives upside down bringing downfall in every manner be it the health, social life, economy, or livelihood of all. But, amidst the lockdown and restrictions, one thing that outshined and turned into a rescuer was the eCommerce business. Unfortunately, the impact of Coronavirus was so strong that even eCommerce underwent some disruptions which we are going to discuss today.

E-commerce has been seeing new entrants, constant growth since the start and has amounted to worldwide sales over 3.50 trillion US dollars alone in 2019.  But, with the emergence of Novel Coronavirus in 2020, the booming e-Commerce industry was put to test with disruptions in the supply chain and changing consumer behaviour.  However, despite all these challenges, e-commerce sales are rising but with a twist. Only a specific section of the e-Commerce market is in demand whereas others are seeing the downhill. Why so? Let’s peek into the details.

The year 2020 has been great for industries like pharma and eCommerce but it has been challenging for other industries like fashion, tourism, automobile, electronics, etc. which have seen layoffs, pay cuts and even closures of their retail stores. The account of the sales percentage of the pharma industry is more than the combined sales of all other industries put together.

Sales figures of E-Commerce giant Amazon which delivers A to Z products to the customers’ doorstep is expected to reach $416.48 billion which is about $12 billion more than the pre-COVID estimates. At the same time, the travel industry saw a whopping 35 percent crash in the estimated sales of 2020.

So, what does e-Commerce have in store for the future? We have tried to map the impact of the COVID-19 pandemic on e-commerce from all angles in this article for your understanding.

The Good Effects on eCommerce 

Sale of hygiene products spiced up

The sale of hygiene products like masks, sanitizers, gloves, etc. have never seen a demand before like now which almost every eCommerce businesses have started selling them in their store. The COVID-19 scare has got people so much that people are looking for hygiene products more than anything else, in fact, some are even bulk buying them for the future.

Sudden surge for daily essentials and medicines

The need to avoid crowded stores has made people turn to online shopping for their daily essentials. Due to the fear of lockdown, panic-buying, and other restrictions, groceries are being highly stocked up fearing scarcity while medicines are being ordered in bulk amounts. Shoppers are spending more than usual on these items as they don’t want to run short of any supplies if at all lockdowns in their cities get extended. Other than groceries and medicines, household disinfectant products, perishable food items and home entertainment products like books, videos and board games also witnessed a huge demand.

Walmart is going to introduce Walmart+ as a competition to Amazon prime with yearly subscription plans that will give members great discounts, free deliveries and early access to promotional deals.

Recommended Blog: COVID-19 Effects: Time to Switch to Grocery eCommerce from Offline Grocery Business?

Fitness freaks go shopping spree

Gyms, swimming pools and other fitness centres are still shut in most of the countries as the possible scare of coronavirus widespread is keeping fitness conscious people at home but it is not stopping them from working out at home. The online sale of fitness equipment has shot up during the lockdown periods.

French sporting goods retailer Decathlon has seen a 220% growth on cycles, yoga mats, dumbbell kits and push-up bars. Nike saw an abrupt demand for its sneakers and other fitness accessories on its digital platform in the first and second quarter of 2020.  Although they have laid off many employees and shut many stores across the world due to government restrictions, they are now planning to invest in technology to better understand and target customers online and improve the online user experiences on their website.

The Bad Effects on eCommerce

Disruptions in supply chain and covering up losses

A lot of dependency for global trade was built on China over the years for being the primary producer of the supply chain for various industries. Small components of electronic items like mobile phones, TV, refrigerators and many other products were vastly imported from China and then assembled in the home country. With the operations of the manufacturing units in Wuhan coming to halt for nearly 2 quarters and China’s increasing political tensions with other countries, the world is facing a major scarcity in the supply chain.

Initially, brands gave huge discounts to continue customer traffic to their website but situations now have changed. In order to cover up the losses made during the first quarter; brands are increasing the prices of products to unreasonably high levels.  These factors are leading to less demand for non-essential items in the market.

Unpredictable consumer behaviour

COVID-19 pandemic has made consumers cautious. With the future being so foggy and the hope for a vaccine being uncertain, consumers are hesitant to spend anything more than essentials. Surprisingly, the definition of essentials has changed overnight with the onset of COVID-19 virus. According to a UK based market research firm, Kantar, sales of hand sanitisers saw an increase of more than 250 percent as compared to last year. Who would have thought that a product like a hand sanitiser would be the biggest selling item online?

McKinsey & Company have reported that due to falling in incomes, consumers are sticking to only essentials while the sale of fashion and apparels which was on the top game till last year has taken a backseat on consumer’s shopping list. This is because consumers aren’t very optimistic about their country’s dripping economy and its recovery.  There has been a shift from extravagant shopping to mindful shopping in consumers.

Product Safety concerns, deceptive practices, and cybersecurity concerns.

Most people are preferring shopping online as compared to visiting retail stores during the pandemic. However, safety protocols while delivering the product still is a major concern for many cautious consumers. People fear that the virus can enter their house through parcels as it has been exchanged by many hands before it reaches their doorstep and the delivery person has also visited many houses before he comes to theirs.

Cybercrimes have increased with scammers feasting on people’s vulnerability through fake emails and apps which gives them full access to the phone’s camera, location and photos. Such deceptive malpractices refrain people from using online payment portals as they don’t want to lose their hard-earned money during such uncertain times.

Promising Days Ahead for E-Commerce

eCommerce sure was a knight in the shining armour during the pandemic and hence, the popularity of eCommerce is only going to increase further in the coming days. Since it will take much longer for people to switch back to offline shopping, there are some moves eCommerce business owners can apply to keep going now and in the future ahead without any drop in sales, like remaining in constant touch with your customers by sending them Push Notifications, SMS, and emails reminding them how much you care for them, getting regular updates from your suppliers, getting a mobile commerce app solution developed to reach out to a wide number of customers, implementing contactless delivery, etc.

Final Thoughts

Companies that display resilience during testing times are the ones which survive. The threat is for those brands who don’t adapt quickly. Darwin’s theory of adaptation has always proven itself to be true when humankind is faced by unprecedented scenarios, where responding to change is the only option to survive.

Companies are closing their stores and investing money on mobile commerce app solutions to make shopping a delightful adventure for the customers which so far was just a basic app without a WOW experience.

So, if you are ready to give your retail store the much-required shift to go online and don’t want to be out of the race or are looking for a makeover of your age-old app then seek none but the best mcommerce app builder in town – MobiCommerce.