E-commerce had reached a new era since the Covid-19 started. As the lockdown and social distancing have become the norm of society, businesses and consumers went digital in large numbers. Total global retail sales increased from 16% to 19% in 2020. The situation is changing faster. People demand safe buying through eliminate gathering. Therefore the necessity of e-commerce is a must.
Buying online is safe or not on this Covid-19?
As per expert opinion virus can live from three hours to three days depending on the surface material. Still, the study continues regarding it so the number may change. It’s less likely that COVID-19 will survive on the packed item due to the slow delivery system and shipping conditions.
Therefore the risk of spread is very low through products or packaging that have been in shipment for few days and didn’t mix with contamination after packaging.
Covid-19: User type & shopping behavior
Different age, economic groups people are involving in online shopping during this Covid. The group of people can be segmented into four types as per research data. Although most people are careful about this pandemic young generations are changing purchase behavior. Besides the old generation are not used to with this shopping habit. Furthermore, some of them are adjusting to it.
1. Close to the poverty line
Among all groups of people, these groups are struggling with their economic condition. Therefore they are eliminating, decreasing while purchasing goods. Except for necessary items they don’t spend money on product buying. As per economic conditions, they earn slightly better than poor people.
- Prefer a low-cost product rather than an expensive brand product.
- Unnecessary expenses & treats stop when it’s possible
2. Middle Class
The number of eCommerce consumers is the highest in this segment. They tend to have hope about the long term but uncertainty about the short term and proceed further. Usual behavior is as follows:
- Minimize expense a bit in all areas
- Consider good deals while buying essentials products
- In case of major purchases, those postponed where possible, prefer repair in lue of replacing with the new one
- Reduct purchasing expendable goods, sacrifice extra features when buying low-ownership costs.
Only the top 5 percent earning group people are in this group. They don’t have any headaches regarding their financial condition. In fact, they feel secure to cope up with the current situation & upcoming economic crisis.
- The essential purchase continues as it is
- Luxury treat product buy in a selective way
- Postponable item still continuing to buy but negotiate for the valuable one
- Most of the goods aren’t expendable among the elite, only they reduce the noticeable expense
4. Live Today
Generally, young generation & people of the city are in this group who don’t think of cost-saving. The main behavior tends to be:
- Purchase favorite brands of essentials and continue favorite treat as before
- Wait for a good deal in postpone product
- Customary purchase is not expendable to this group perhaps they are not going to buy new types of product
Change in eCommerce tools & service market
The current trend among retailers without eCommerce is moving to SaaS eCommerce platform. The shifting process takes highest two to four weeks at this subscription-based eCommerce model. Furthermore, retailers with existing eCommerce are investing in logistics to enhance their capabilities.
To increase sales faster companies also investing in eCommerce marketplace integration including product management systems, and logistic systems.
To manage supply chain challenges and get maximum ROI within online consumers various companies start its own marketplace.
Therefore the current leading platforms & tools are:
- SaaS eCommerce platforms
- SaaS PIM platforms
- Marketplace Integration tools
In all other cases there we will see more changes. In fact, various retailers will decrease IT investment temporarily to grow in the long term. Meanwhile, all eCommerce will try to minimize cost by leaving out intermediaries.
Moreover, a few of the general technology may take place throughout the eCommerce platform. For instance:
- 3D:(AR , VR), virtual sampling, virtual shows, streaming product
- AI: Security, logistics, bots
- Digitalisation of B2B
- Automated marketing: Offer management, CRM, communication
Due to new changes and scope introducing new technology such as AR & VR will increase customer engagement and result in generating sales.
Altering category revenue at e-commerce
As soon as people start to avoid gathering, brick-and-mortar stores with online present increase their sales than before. For instance, JD.com, quadruple its sales within the same time span the previous year.
Grocery eCommerce reach a huge spike in the second week of March. In the meantime, other types of eCommerce demand were increasing a bit but not as grocery. Whereas medical, baby products, cleaning food, and beverage was at the top after grocery.
Changing of local and global circumstances impact on changing of categories to be bought. Health and safety product was purchased faster than it can be restocked.
People who were supposed to be on long-term quarantine consumed shelf-stable goods in large numbers. Apparel and fashion item sales have been down since people are spending money on essentials items.
eCommerce growth in Bangladesh During COVID-19
Currently, there are 2500 eCommerce websites in Bangladesh that are selling products worth over $2 billion. In terms of global eCommerce revenue ranking, it’s in 46th position as per the news report. Furthermore, 300,000+ stores also operating from Facebook according to the Industrial Development Leasing Company of Bangladesh Limited. At the initial stage of the crisis, eCommerce lost its revenue but various online-based financial services boost up these businesses.
In fact, sales increase more than 70% from July to September in 2020, the amount of revenue in the online platform was $708.46 million. Definitely, the grocery and essentials items category was the main contributor same as global eCommerce.
Let’s say, chaldal.com is one of the most popular eCommerce in this segment. The number of orders increases more than six-time from 2,500 to 16,000 compared to March 2020. Meanwhile, checkout size increase by 3 times from $15 to $45, and medicine orders increase by 7 times.
Ecommerce customers in Bangladesh are from different locations but most of them are from the city areas. Almost 80% of the user are from Dhaka, Chittagong, Gazipur, Sylhet, Narayanganj. Nearly 85% of the user ages are between 18-34 which indicate the young consumer is the potential customer.
Various eCommerce introduces a new type of category & changes business model. Such as ajkerdeal.com or priyoshop.com added grocery & essential item segments which type of item was not sold before. Besides, pharmacy shops & other businesses also started selling their product online.
Key eCommerce Strategy
Along with other eCommerce essentials, the strategy also changes. To adapt to new challenges following eCommerce strategy should be taken during this pandemic.
- Personalized customer experience with live chat, phone call, SMS, & email.
- Fulfill commitment by delivering products on time.
- Resolve all problems of your customer & make them understand that we are here to hear you.
- Increase Brand Engagement
Which eCommerce model is best for you?
The answer depends on various aspects. For instance, your targeted customers, products, seller type, advantage on budget, etc. If you have a physical shop or a brand that you want to transform into an eCommerce store then a single vendor will be the best option for you. You will be the only seller of your store.
For example, apple is a renowned brand selling its product on its official website apple.com.
Besides if you would like to build a marketplace where multiple sellers will sell their product on the basis of commission and customers will purchase products then quykshop multi-vendor is recommended for you. There are various benefits like stable product price, product variety, fewer supply disruptions, no direct interaction with the customer, high-profit margin. Among all the eCommerce platform types multi-vendor is the most popular model.
Like Amazon, aliexpress, daraz, Walmart are renowned multi-vendor marketplaces.
On the other hand, an existing brand with a single vendor eCommerce website that wants to expand the business through manage multiple stores from a single store storefront then multi-vendor is the right choice. This is because it will allow you to reach out to certain geographic areas and high conversion on-target marketing.
Just as in particular shwapna a super shop selling their product on its multi-store website.
Spikes in eCommerce sales are visible strongly. Numerous businesses digitalized their physical store and join at eCommerce industry. Hence it is the right time to grab the opportunity and take a stronger position with quykshop eCommerce solution.