As we all know, Coronavirus has been spreading like wildfire in the whole world. The Coronavirus, also known as COVID-19, was first reported in Wuhan, China, on Dec. 31. Since then, it spread to the whole of China and then to other countries as well. There are more than 95,000 confirmed cases of the Coronavirus globally, and the death toll has reached up to 3,000 in 45+ countries.
As we know, the virus is not just restricted to China only. It has become a global issue now. It is affecting the supply chain and disrupting global markets, producers, and retailers. Both the small as well as large scale businesses are concerned about the economic effect and impact of the outbreak.
The outbreak has affected many countries in Asia, such as Cambodia, Myanmar, the Philippines, and Vietnam, which have trade ties with China. China accounts for nearly 6-90% of exports in these countries. This has resulted in an economic slowdown.
Are there significant negative impacts on eCommerce businesses?
Businesses like Mastercard, Microsoft, Apple, and United Airlines highlighted how the virus is affecting customer behavior and businesses globally. Many Chinese brands, such as Oppo, Xiaomi, Lenovo, and Huawei, are expected to see production delays.
However, not all the industries are struggling due to the Corona outbreak; not all the businesses are facing the negative impact of the virus. Some industries are benefiting from the Coronavirus outbreak. Some industries, like the online retailing, online gaming industry, and social networking services, are the ones that might benefit from Coronavirus.
How is the impact of Coronavirus on eCommerce businesses? Is it Positive or negative?
With the Coronavirus outbreak of Corona, the majority of the retailers in China have shut down their stores and shops and have shifted their focus towards eCommerce. Chinese eCommerce giant JD.com has created 35,000 new jobs so that people can work even from their homes work due to the restrictions put into workplaces.
Since the outbreak happened in China, it created a boon for the eCommerce industry as shoppers can be at their homes and still order goods online. Sales of fresh food on JD.com jumped from 215% to almost 15,000 tons during the outbreak.
Apart from that, the outbreak also has proved to be beneficial for online sales of provisional supplies because, at times like this, shoppers care the most about keeping their families safe from a viral outbreak. The brands are benefitting from Coronavirus, also including online brands selling immune-boosting products.
With the outbreak of Coronavirus, there is increasing pressure on an eCommerce business. As sales from physical stores are declining with shops being closed or open just for a shorter period, the demand for online products has increased unbelievably. As the demand is increasing, the supply of the products is limited.
How to manage the impact on your eCommerce business?
There are some steps you can take to limit the impact of the virus spreading in your business. Here are some steps that can help you-
Manage the relation with supplier
Keeping a good relationship with your supplier in such times helps to keep you informed and limits the unexpected risks. Strengthen your relationship with them in such a hard time.
Manage your sales run rate
You have to manage your sales run rate. You have to check which run rate you can manage so that you don’t run out of stock. Since there is an increasing demand, make sure you don’t run out of inventory.
Support team FAQ
You need to prepare your customer support team for the questions that the customers ask. You should answer their questions and doubts like shipment delays, the safety of opening the packaging, etc.
Many experts have recommended that retailers doing business in China need to figure out their supply chains and put more emphasis on eCommerce until the Coronavirus outbreak ends.
As we know how there are many negative impacts of Coronavirus on eCommerce businesses around the globe, but the impact of Coronavirus on eCommerce business is positive. It is like a boon for eCommerce business as people are buying more products online. Many eCommerce jobs have been generated in China as a result of the closing down of retail shops.
Due to the increasing demand, it becomes a little difficult for eCommerce owners to meet the demand of the people. In difficult times like this, eCommerce is helping people in buying necessities online.
Until and unless the Coronavirus outbreak ends, the eCommerce business seems like the best option in China. Being an eCommerce agency, you should continue to monitor the situation to bring awareness among people and provide the customers with necessary items.
We all wish the Coronavirus outbreak ends asap in the world, and everything comes back to normal. Till then, we hope all you stay safe and healthy in whatever part of the world you are.