The Effect of Covid-19 on E-commerce
The global spread of COVID-19 has brought much uncertainty. Industries continue to prepare and adapt to what has become the “new-normal”, and e-commerce is no exception.
The changes brought upon e-commerce so far show a continuous spike in customer spending, with over half of Americans saying they are shopping online more as a result of the outbreak.
Online Retail Spending is Up
As the nation resides in a state of quarantine, the majority of Americans say their retail spending has increased within the last 60 days. Among some of the reasons consumers say they’re spending more, many say not knowing if the product is accessible in-store, some say it’s a result of being at home more, and having more time to shop online.
Changing Retail Expectations
In light of store closures and impacted delivery times, retailers have had to make adjustments to their return policies in order to appeal to those looking to buy. In response to COVID-19, many agree that they have lowered their shipping expectations, saying they will place less emphasis on delivery speed moving forward. Consumers are now focused more on flexible return policies, with many customers expecting brands to provide free returns as a result.
Support for Small Businesses
COVID-19 has had a heavy impact on local and small businesses. However, in response to the crisis, there is a resurgence in support for small-to-medium retailers. Over half of consumers say they’re now more aware of local and independent brands they can support, while increasing their spending with those brands. The benefits of supporting small businesses extend far beyond the crisis itself, with the vast majority planning to support more local and independent brands in the future.
Now it is better than ever to rethink how your e-commerce business can evolve during this challenging time. While many industries are trying to survive, e-commerce has shown it is possible to thrive!