COVID-19 has had massive implications on Australian public health and economy. As of September 9, 2020, Australia has registered 26,374 cases of the virus, as well as entering its first recession in 29 years. Businesses are closing at an unprecedented rate and this is just one of the great tragedies that the pandemic has imposed upon the country. But there is a bright side to all this mayhem, and it comes in the form of businesses making the digital switch to increase their profits.
Many businesses made the decision to go online upon the realisation that people are now wary of cash transactions, others were forced to due to lockdown. Australia is already tipped to become Asia-Pacific’s first cashless society by 2026 and so many business owners have seized this opportunity to go completely digital.
So, how are Ecommerce businesses making a profitable solution out of a dire situation?
image source: theage.com.au
Turning tragedy into takings
COVID-19 presented millions of Australians with an opportunity to work from home, with many people choosing to open up their own Ecommerce store as a means to supplement their income. Ecommerce businesses are in the best position to make profit during the pandemic. After all, at some point of the year, if not currently, most brick-and-mortar stores have been forced to close their doors. With millions of Australians working from home without the opportunity to enjoy the usual comforts of existence, they have turned to Ecommerce businesses to buy their goods. In fact, Australian Ecommerce revenue is expected to hold an annual growth rate of 5.8 per cent from 2020-2024, meaning shoppers are set to continue buying from their laptops, tablets and smartphones as opposed to brick-and-mortar stores.
One only has to look to Amazon’s success in this period to highlight the amazing opportunity Ecommerce stores have throughout the pandemic. In the quarter ending June 30, Amazon Web Services’ revenue climbed 29%, close to a US$43 billion run rate. It’s not just global tech giants that are seeing increased digital sales throughout the pandemic, with Australian companies also realising dramatic sales increases during lockdown.
COVID-19 has been disastrous for the Australian economy, but it has provided a unique opportunity for businesses to hone their Ecommerce potential and redirect their focus.
An integrated digital solution is imperative
Businesses without well-developed digital management have struggled to make the online switch during the pandemic. Even Australia’s major supermarket retailers struggled to keep up with the demand in online orders, forcing some of them to temporarily cancel their online ordering system.
A holistic approach to digital marketing has become imperative to business success. With more businesses making the digital transition than ever before, the demand and competition is increased. A business owner who forgoes an efficient online strategy may struggle to keep up as Ecommerce continues to grow in the coming years. 87 per cent of buyers start their product search online, furthering the notion that 2020 onwards will be the time to enhance your digital marketing solution and fully integrate your digital strategy.
A future in Ecommerce
COVID-19 has already shown us the importance of having an online presence, but what does the future behold for businesses making the online switch? Consumers have become more confident in shopping online, despite the pandemic occasionally slowing fulfillment rates. People are becoming more comfortable with the idea of purchasing a product online and having to return it if necessary. After all, they are not necessarily able to return the item to abrick-and-mortar store, so online shopping/delivery is, for many, the only viable option.
Ecommerce stores are adapting to meet this demand, too, with many businesses making their websites something of a digital brick-and-mortar store, a place where you can have a proper buying experience, with more streamlined buying processes taking away the need to endlessly search for the one product.
Even businesses with a limited marketing budget are able to enter the market through savvy digital practices and careful marketing.
COVID-19 has created enormous confusion in the economy. Markets are unstable and brick-and-mortar stores, both locally and globally, are being forced to rethink their sales strategy. With Ecommerce platforms like Amazon leading the charge in global profit for 2020, it is easy to see why a business should quickly consider making the digital switch. What’s more, it is unclear as to when physical shopping, free of social distancing measures and consistent health regulations, will once again become commonplace.
The most viable option for businesses at this current time is to make the Ecommerce transition.