As the coronavirus continues to gain traction in Europe and the rest of the world, there have been signs of changing consumer behavior. Self-quarantines and growing consumer worry about public exposure is providing opportunities for the e-commerce business to thrive over the next few months. As consumers turn to digital options as a means to bypass physical shopping environments, the change in behavior will certainly impact longer-term behaviour. As we well know, consumer behavior is influenced by technological advancements, but also by environmental, economic and sociological factors and all three of these are evident with COVID-19.
In 2020, e-commerce is expected to represent 12% of total retail sales, however, a change in consumer behavior in the first quarter of this year due to the coronavirus is sure to impact the future quarters for 2020 and have a profound impact on holiday sales. As the consumer’s confidence with online shopping grows and technology is more intuitive creating a better UX and a more engaged customer, the digital side of retail business´s must be developed at a faster rate than previous projections.
“If we come to a point where we must avoid stores or other public places, it could boost e-commerce, especially for CPG and those purchases we can’t postpone by a few weeks. That would of course have a big impact on digital marketers who could compete for the purchases of consumers who are not frequent online shoppers.” – Frederick Vallaeys, from Optmyzr
“What I see as short-to-mid range impacts (1 – 4 months) for e-commerce specifically — we’re already starting to see it across major marketplaces like Amazon — is a massive increase in online orders as people avoid person-to-person contact of in-store retail. Not only for disinfectant and cleaning supplies but for all goods and services: grocery delivery, everyday item delivery, etc. The long-term effect of this massive increase in online orders, in my opinion, will create stress on the logistics system that will cause both marketplaces and DTCs to renege on 1 and 2-day deliveries, and could potentially grind the system to a temporary halt as delivery windows stretch back out to pre-Prime days of 5 to 7-day windows.” – Tony Verre, from The Integer Group
We at Sizebay believe that brands should also start thinking about how they can leverage their marketing to address issues caused by COVID-19, such as store closures and creating a better customer service and e-commerce experience is crucial during times like this.
With online sales growing it is even more important to act on recurring problems, preventing them from multiplying due to increased sales. For example, logistical costs (and delivery time) will certainly be affected and an extra effort must be made to reduce these cost points that can generate even more logistical costs. Sizebay´s virtual fitting room is a service that helps consumers choose the right size for their body type and individual taste. This has a tremendous impact on reducing exchanges and returns and, consequently, on logistics costs.
We are 100% operational!
Our teams are already working in order to respect all procedures indicated by government entities where we are located. In the United States, Portugal and Mexico, the entire team is working remotely and in Brazil we are reinforcing guidance and care with the transportation of our employees to keep them protected from contamination.
We are happy to inform you that despite these adjustments our Sales, Engineering, Product and Customer Success teams in all countries in which we operate are working at full capacity, that is, we do not expect delays in your calls and queries, as with monitoring and delivery of our new resources.
Our environment is also being constantly monitored due to the increased demand for visits to our customers’ businesses. With the restrictions imposed on mobility and social contact, the demand for online stores has been growing daily.