New challenges in e-commerce management
Posted: Wed Dec 04, 2024 9:00 am
In recent months, global markets and consumer behavior have evolved more rapidly and dramatically than in the past decade as a result of the global Covid-19 pandemic.
A few weeks ago, we explained the different phases that consumers had gone through during lockdown and how they were gradually starting to reactivate their purchases, as a result of the “new normal”. Despite this, we do not act as buyers in the same way as we did before.
According to Technomic , 52% of consumers worldwide are avoiding crowds and 32% are leaving their homes less frequently due to the coronavirus. Adobe Analytics, in a study on how Covid is affecting online shopping, reveals that consumers are more likely to buy and stock up on non-perishable food items and demand for these products has increased by almost 69%.
What does all this data mean? That most global markets were forced to alter all their online marketing operations and strategies , and this creates new challenges for brands that sell online in e-commerce or marketplaces.
New challenges in logistics and supplies
According to the latest data from various marketplaces and platforms such as Google, markets are experiencing an increase in traffic, demand and conversions, accelerated by the shift in trends from online shopping to physical purchasing at the point of sale.
This increase, together with restrictions on the movement of goods, services and people, has generated great pressure in the logistics sector and all brands that sell online are struggling to deliver their products on time and restock.
On average, deliveries on e-commerce platforms have been delayed by between 7 and 14 days (although things are gradually returning to normal, delays still occur). This has not only happened to small retailers, for example, but the giant Amazon has also experienced tensions in its chain, which have led to delays in shipments (something unusual in this marketplace) and lack of availability of non-essential products.
In addition, online demand is added to the offline demand that already exists, and this creates some problems in replenishing suppliers.
Online shoppers also expect the immediacy that the medium provides and the shopping experience can be negative for them, as their needs are not met in time.
This is why many markets, as a result of the pandemic, are re-evaluating their local inventory levels, with new plans to expand their stock and have sufficient physician phone number list product availability, in the event of new global disruptions as a result of the confinement and closure of countries.
Generating new opportunities from stock shortages
We have already seen that “non-existence” is something that many brands will have to deal with and that this can generate a negative or frustrating experience for customers.
Within this difficult situation, there are some lines in which we can work to counteract this bad experience, for example taking advantage of the demand for it through the implementation of a zero search landing page (product not available), which contains recommendations for lack of stock.
We are aware that today, as we have seen, the unavailability of many product categories is a frequent problem, but we must not allow users to leave empty-handed, so we can take advantage of that product page to recommend similar products or what other users have bought. This will help us improve the customer experience in the face of the frustration of not finding what they are looking for and can boost our sales.
If we cannot display these related products for each out-of-stock product, because our e-commerce is not programmed to do so or the new functionality would have to be developed and there is no time, we can ask the customer to leave us their contact information so that we can notify them as soon as the product is available again.
These notifications can be a good strategy to retain and build customer loyalty by keeping them updated about the product or product category they have shown interest in.
Changes in consumer behavior
It is clear that consumer behaviour is changing. Measures such as social distancing and fear of contagion are increasing demand for e-commerce and also the usual way of shopping.
In our study of consumer behaviour during the lockdown period , we already saw how, despite not being able to go outside, online consumption continued and we reduced our activity little, especially in electronics, decoration, health and sports, beyond food, which was the sector that grew the most since the state of alarm was declared.
Graphic image of consumer purchasing behavior
In recent months, a unique situation has occurred in which we have seen very low CPLs (costs per lead) and a huge growth in attracting traffic and visits to different websites, which has allowed many brands to earn more with a very low investment.
The problem now is that despite this increase in demand, brands have to be aware that the situation is normalizing and this implies that competition is coming back into play and we must prepare some strategies to attract customers to our platforms and be different to become the chosen option. Some recommendations that we could carry out:
Encourage planned purchases
A challenge that many marketplaces and e-commerce sites have had to face (and that continues to be present) is processing new order volumes.
Normally, e-commerce sites have a constant flow of orders and have analyzed the peaks of increased demand. However, the pandemic has changed everything and has eliminated the seasonality of many products and the concentration of demand in specific seasons.
Given this, we can introduce time slot availability in our e-commerce and encourage users to plan their purchases based on these slots. This will allow us to ensure the fluidity of orders, while offering a realistic and frustration-free experience for our customers.
For example, our client Consum, whom we helped design the user experience on the website , does so masterfully in its “planner” section.
Graphic image of the consumer recipe planner and the management of its ecommerce
It helps the user to create their weekly menu and carry out their shopping with foresight and in advance.
Another example from outside Spain is found in Walmart supermarkets, which during this time have allowed people to reserve a time slot for shopping.
This can help us ensure a smooth delivery process for the user and, in the case of supermarkets, avoid panic buying that can lead to stock-outs and limited supply.
Adapting product categories to today's reality
The best way to improve the customer experience is to put ourselves in the customer's shoes and to do so, we must understand that the current situation is because life and activity in homes has increased significantly, despite the gradual lifting of restrictions.
Confinement has caused consumers to change their habits and discover new and different forms of leisure and entertainment at home. Understanding this can help us promote different product categories at certain times and help us empathize with the audience.
For example, PORCELANOSA Group's Lifestyle magazine has taken advantage of the opportunity to propose different activities within the home and connect with its buyer personas through their interests, such as architecture and interior design.
In this way, we carried out the initiative to make users' stay in their homes more enjoyable, with live broadcasts by renowned architects and interior designers in which different trends were discussed.
A few weeks ago, we explained the different phases that consumers had gone through during lockdown and how they were gradually starting to reactivate their purchases, as a result of the “new normal”. Despite this, we do not act as buyers in the same way as we did before.
According to Technomic , 52% of consumers worldwide are avoiding crowds and 32% are leaving their homes less frequently due to the coronavirus. Adobe Analytics, in a study on how Covid is affecting online shopping, reveals that consumers are more likely to buy and stock up on non-perishable food items and demand for these products has increased by almost 69%.
What does all this data mean? That most global markets were forced to alter all their online marketing operations and strategies , and this creates new challenges for brands that sell online in e-commerce or marketplaces.
New challenges in logistics and supplies
According to the latest data from various marketplaces and platforms such as Google, markets are experiencing an increase in traffic, demand and conversions, accelerated by the shift in trends from online shopping to physical purchasing at the point of sale.
This increase, together with restrictions on the movement of goods, services and people, has generated great pressure in the logistics sector and all brands that sell online are struggling to deliver their products on time and restock.
On average, deliveries on e-commerce platforms have been delayed by between 7 and 14 days (although things are gradually returning to normal, delays still occur). This has not only happened to small retailers, for example, but the giant Amazon has also experienced tensions in its chain, which have led to delays in shipments (something unusual in this marketplace) and lack of availability of non-essential products.
In addition, online demand is added to the offline demand that already exists, and this creates some problems in replenishing suppliers.
Online shoppers also expect the immediacy that the medium provides and the shopping experience can be negative for them, as their needs are not met in time.
This is why many markets, as a result of the pandemic, are re-evaluating their local inventory levels, with new plans to expand their stock and have sufficient physician phone number list product availability, in the event of new global disruptions as a result of the confinement and closure of countries.
Generating new opportunities from stock shortages
We have already seen that “non-existence” is something that many brands will have to deal with and that this can generate a negative or frustrating experience for customers.
Within this difficult situation, there are some lines in which we can work to counteract this bad experience, for example taking advantage of the demand for it through the implementation of a zero search landing page (product not available), which contains recommendations for lack of stock.
We are aware that today, as we have seen, the unavailability of many product categories is a frequent problem, but we must not allow users to leave empty-handed, so we can take advantage of that product page to recommend similar products or what other users have bought. This will help us improve the customer experience in the face of the frustration of not finding what they are looking for and can boost our sales.
If we cannot display these related products for each out-of-stock product, because our e-commerce is not programmed to do so or the new functionality would have to be developed and there is no time, we can ask the customer to leave us their contact information so that we can notify them as soon as the product is available again.
These notifications can be a good strategy to retain and build customer loyalty by keeping them updated about the product or product category they have shown interest in.
Changes in consumer behavior
It is clear that consumer behaviour is changing. Measures such as social distancing and fear of contagion are increasing demand for e-commerce and also the usual way of shopping.
In our study of consumer behaviour during the lockdown period , we already saw how, despite not being able to go outside, online consumption continued and we reduced our activity little, especially in electronics, decoration, health and sports, beyond food, which was the sector that grew the most since the state of alarm was declared.
Graphic image of consumer purchasing behavior
In recent months, a unique situation has occurred in which we have seen very low CPLs (costs per lead) and a huge growth in attracting traffic and visits to different websites, which has allowed many brands to earn more with a very low investment.
The problem now is that despite this increase in demand, brands have to be aware that the situation is normalizing and this implies that competition is coming back into play and we must prepare some strategies to attract customers to our platforms and be different to become the chosen option. Some recommendations that we could carry out:
Encourage planned purchases
A challenge that many marketplaces and e-commerce sites have had to face (and that continues to be present) is processing new order volumes.
Normally, e-commerce sites have a constant flow of orders and have analyzed the peaks of increased demand. However, the pandemic has changed everything and has eliminated the seasonality of many products and the concentration of demand in specific seasons.
Given this, we can introduce time slot availability in our e-commerce and encourage users to plan their purchases based on these slots. This will allow us to ensure the fluidity of orders, while offering a realistic and frustration-free experience for our customers.
For example, our client Consum, whom we helped design the user experience on the website , does so masterfully in its “planner” section.
Graphic image of the consumer recipe planner and the management of its ecommerce
It helps the user to create their weekly menu and carry out their shopping with foresight and in advance.
Another example from outside Spain is found in Walmart supermarkets, which during this time have allowed people to reserve a time slot for shopping.
This can help us ensure a smooth delivery process for the user and, in the case of supermarkets, avoid panic buying that can lead to stock-outs and limited supply.
Adapting product categories to today's reality
The best way to improve the customer experience is to put ourselves in the customer's shoes and to do so, we must understand that the current situation is because life and activity in homes has increased significantly, despite the gradual lifting of restrictions.
Confinement has caused consumers to change their habits and discover new and different forms of leisure and entertainment at home. Understanding this can help us promote different product categories at certain times and help us empathize with the audience.
For example, PORCELANOSA Group's Lifestyle magazine has taken advantage of the opportunity to propose different activities within the home and connect with its buyer personas through their interests, such as architecture and interior design.
In this way, we carried out the initiative to make users' stay in their homes more enjoyable, with live broadcasts by renowned architects and interior designers in which different trends were discussed.