In recent weeks, traditional retail has taken a massive hit due to the COVID-19 state of emergency. However, one sector has experienced significant growth: e-commerce—online commerce and online stores.
E-commerce is the essential evolution if we want to keep our businesses afloat during these challenging times.
Restaurants have adapted quickly, now accepting online orders.
Hardware stores are also keeping up, offering customers the option to shop online.
The food sector delivers groceries straight to our doors, with online payment.
Do you notice the pattern?
E-commerce in the Age of COVID-19
What is e-commerce?
Let’s start with the basics.
E-commerce = online store = electronic commerce.
E-commerce or electronic commerce is a system for buying and selling products and services using the internet as the medium of exchange between parties.
In other words, with e-commerce you can sell products or services online, regardless of government-imposed lockdowns or global pandemics.
This system allows you to manage payments and collections electronically.
What are the advantages of turning your business into an e-commerce?
Having an online presence is crucial for your business to exist, but sometimes that alone isn’t enough.
COVID-19 has been a wake-up call for many small business owners, SMEs, and large companies alike, as they’ve seen their operations restricted by the state of emergency. For some, this has opened up new business opportunities.
Being able to trade online opens the door to an entirely new business dimension.
The main advantages of e-commerce include:
- Launching an e-commerce means expanding the market you compete in.
- Increased sales opportunities.
- A new revenue stream for your business.
- Your online store has no opening hours—your business is open 24/7, 365 days a year.
- Access to a much larger market. With e-commerce, you can reach international customers.
- Lower administrative costs.
- Improved communication with customers.
- Ability to segment advertising campaigns related to e-commerce.
- Provide more information about your e-commerce products.
- Better inventory control.
- Track which e-commerce products sell best and which don’t, helping you optimize profitability, restocking, or replacement.
- Increased product sales.
What are the drawbacks of turning your business into an e-commerce?
With great power comes great responsibility, so here are some challenges you might face if you want to launch an e-commerce:
- It requires an initial investment, especially for the e-commerce development and design.
- You’ll need to dedicate time to managing your online store.
Bottom line
When you weigh the pros and cons, the answer is clear.
Making the leap to e-commerce is all about advantages.
If you can handle the initial investment, moving to e-commerce is a win. All you need is business vision.
This way, you’ll be prepared to face the challenges of the COVID-19 emergency—and whatever comes next.
Do you own or manage a restaurant? We have extensive experience building exceptional websites for this sector. Click here for expert advice on boosting your online presence. We’ll review your current website and provide a tailored action plan for improvement.
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The future of e-commerce
The outlook for e-commerce is not just positive—it’s outstanding.
E-commerce is expected to grow in Spain faster than anywhere else in Europe. Projections put retail growth at 12.5%, representing a market volume of €31.73 billion.
With many sectors frozen for two months and ongoing uncertainty about a potential resurgence of the pandemic at the end of 2020 and start of 2021, the smartest move is to get proactive and embrace e-commerce.
Moreover, forecasts predict continued growth, reaching €40.12 billion by 2023.
Keys to a successful e-commerce
In many ways, an online store is just like a physical shop.
There are several factors to consider if you want your e-commerce to succeed:
- Turn the COVID-19 crisis into a business opportunity.
- A successful e-commerce needs a results-driven design.
- Keep it simple—make shopping easy for your customers.
- Offer flexible payment options.
- Build a solid website structure.
- Provide plenty of information.
- Responsive, mobile-friendly design.
- Focus on user experience.
- Provide plenty of information.
- Be transparent.
- Communicate clearly.
- Strong SEO and SEM strategies.
- Include all essential information.
- Be transparent.
- Optimize for search engines.
- Use clear calls to action.
- Deliver excellent customer service—before and after the sale.
- Stay up to date with trends and technology.
- Adopt an omnichannel marketing approach.
Check out our article on the top e-commerce sites right now.
Which businesses can benefit from e-commerce?
Almost any commercial sector can benefit by going online.
Fashion e-commerce, gift e-commerce, and accessories e-commerce are the areas where online stores and e-commerce have gained the most traction since their inception.
The state of emergency and the forced closure of many businesses for health reasons make it essential to consider e-commerce as both an alternative and a primary source of income.
As people become more comfortable with online payments and security measures, trust in e-commerce platforms continues to grow, encouraging more users to shop online.
Beyond the main sectors, e-commerce has also gained momentum in art e-commerce and online furniture sales.
In recent weeks, there’s been a surge in businesses making the leap to online commerce. The reason is clear: COVID-19 movement restrictions have exposed the vulnerabilities of traditional brick-and-mortar businesses.
We like to earn money—and spend it—so that energy has simply shifted to the channels that are open and available.
Online tech stores and food e-commerce have seen their sales multiply, to the point where they’ve had to hire extra staff to handle the increased workload.
On top of that, other sectors, such as logistics and delivery, have been overwhelmed by the new demand.
What now?
One of the longstanding challenges for e-commerce has been public distrust, but the current state of emergency has, in effect, forced users to change their shopping habits—almost like a winning marketing strategy.
Hundreds of thousands of business owners have been forced to close their doors. The COVID-19 emergency left them with no choice.
Now it’s time to evolve and develop a sales strategy that runs alongside your traditional business—e-commerce is the best solution.
This has created the perfect environment for millions of users who were previously hesitant to shop online to become the target audience for your online sales strategy.
We’ll see how the situation develops and what the new “normal” looks like, but for now, we predict:
- Online sales will grow exponentially
- Traditional retailers will need to embrace this new form of electronic commerce
- Some businesses will resist change—and that could mean the end for them
- Competition will be fierce
- The range of options will be endless
Do you own or manage a restaurant? We have extensive experience building exceptional websites for this sector. Click here for expert advice on boosting your online presence. We’ll review your current website and provide a tailored action plan for improvement.
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Conclusion:
The takeaway is simple: if your business can sell online, you should make the move to e-commerce. If you don’t, your competitors will.
The first to make the leap will be the pioneer, but if you don’t join in, you’ll miss out on your share of the market.
Since budget is often a concern when launching an e-commerce, the best thing you can do is look into digital transformation grants.
Chambers of commerce are a key resource for freelancers and entrepreneurs. There’s one in every city—reach out and get informed.
You can also visit the Ministry of Industry, Trade and Tourism website. In the business support section, you’ll find a variety of programs that may be of interest.