E-commerce and Covid-19: Challenges, Solutions, and Opportunities

31 October 2021

Discover tips on how to prepare your business to start or expand e-commerce sales during this Covid-19 pandemic period.

Changes in demand, high demand for certain items, supply chain disruptions, changes in customer behavior, physical store closures: as the Covid-19 pandemic evolves and social isolation persists, logistics managers face increasing challenges.

To cope with all the transformations, the vast majority are heavily investing in e-commerce. Those who have worked only with retail are looking for ways to adapt to online sales to sustain their business. Conversely, companies that already had this channel are directing all their energies to strengthen it and win over the customer. The truth is that a change is underway, establishing a “new normal” that must remain post-pandemic. And those who prepare well now can reap good results.

To help you rethink your business and structure the necessary changes, we will address the impacts of Covid-19 on e-commerce, as well as solutions and opportunities. Check it out below:

From Physical Commerce to E-commerce

Although some physical stores may be open by adopting safety measures, the rapid growth of e-commerce has shown that now is a good time to establish online sales or even to encourage it, in the case of companies that already conduct such sales. After all, the customer must have the option to purchase, and if they want to avoid physical contact, it is fair that they can choose to receive the product at home. This is what the vast majority have opted for.

Therefore, if you are already working with sales in physical and online stores, it is important to communicate to all your customers that your e-commerce is active and operational, especially those more accustomed to visiting the physical establishment. This also applies to potential customers.

If you have on-the-road sales representatives, use them at this time to contact customers, helping them shop online, explaining how to create an account, navigate the site, and place orders. Also, take advantage of your social network pages to advertise e-commerce sales, share step-by-step guides, and details on how deliveries are made. The more information customers have, the better.

The Customers

One of the biggest mistakes a company can make at this time is forgetting its loyal customers. Many companies are already aware of this and offer a range of additional services, such as discounts, free delivery, gifts, etc. It is important to keep in mind that your company needs to support customers, and this is where creativity comes into play to define smart and innovative strategies.

And your company can help not only the specific group of customers but society as a whole. Ambev produces hand sanitizer, Fiat repairs ventilators, Heineken has launched a campaign to encourage bars, and many others are taking action. The pursuit of social responsibility can generate even more empathy with consumers.

Remember: whatever step you take, keep your customers updated with personalized messages in your online store or via email or app messages. Many companies have made stock levels visible and informed customers if there is a possibility of delays in shipping and restocking. All this brings the company closer to its customers because where there is transparency, there is also trust!

Quality Online Service

As more and more consumers turn to e-commerce due to the coronavirus pandemic, having just an online store is not enough. It is necessary to ensure that the e-commerce site meets the needs of all types of customers. This means a convenient, reliable, and comprehensive online store that convinces customers to buy from that company rather than turning to the competition.

In this sense, it is important to ask yourself: what do my customers expect from my online store?

In general, your online sales platform must:

– Offer relevant information: it is essential to share accurate, complete, and real-time product information at the stock level, in addition to tracking delivery.

– Have optimized features: the sales site must allow its customers to quickly complete an order, track orders, and manage returns.

– Handle complex orders: the online store must have the right structure to process complex orders, including those based on complex pricing and discount structures.

– Avoid ordering errors: product information, prices, and stock levels must be accurately displayed in the online store 24/7. And customers must have access to order history and account data to avoid errors.

Simplified Return Processes and Reverse Logistics Management

Since most sales have occurred online and with customers avoiding face-to-face contact, returns become part of the routine. Clothing stores, for example, must be ready to manage it without stress for their warehouses and also without stress for their customers.

Ideally, customers can be allowed to make returns through the online store and track the progress. This will not only be more convenient for your customers but will also prevent excessive calls and emails to your service teams.

And, most importantly, your distribution center must be ready to handle reverse logistics, treating returned goods the same way as an item received from the supplier. With the help of the WMS system, this process can be managed simply and decisively.

Expanding Online Sales into New Regions and Markets

If you already have an online store, now is a good time to think about expanding sales into new regions and markets. This can be done both to ensure revenue and to support customers.

Initially, you can start selling online in regions where you have a physical presence but no online presence. You can use your physical store as a mini distribution center or collection point, for example.

If you work with B2B (Business to Business) companies and sales are difficult, there is also the possibility of opening a D2C (Direct to Consumer) or B2C (Business to Consumer) e-commerce site. This can help you bypass any supply chain disruptions or even find new sources of income.

Adapting the Warehouse to E-commerce or Omnichannel

Finally, a very important tip: take care of logistics! If you intend to migrate from physical sales to e-commerce or if you intend to sell in both channels, you need to prepare your distribution center. Order fulfillment for a point of sale (usually closed box) is different from that done directly to the customer (fractional), therefore different picking methods are used. In e-commerce, speed in order processing and assertiveness in picking are crucial, as they directly impact consumer satisfaction. Another point that must be prioritized is reverse logistics, which is quite common in e-commerce and must be effectively managed so that the company does not incur losses.

Additionally, to sell effectively online, your inventory management system must be integrated with ERP and the sales and courier system, so that the site always offers updated inventory information at the moment the consumer places the order, and also to allow delivery tracking.

A warehouse serving e-commerce sales also needs efficient replenishment of picking lines, strategies to avoid excessive movements in the DC, solutions to direct products (noble items in privileged areas), and strict quality controls, for example. Therefore, meeting these requirements manually can be time-consuming and leave room for errors. Therefore, the most recommended is to use a WMS system, which automates and standardizes processes in the DC and has specific solutions to ensure efficiency in order fulfillment and deliveries.

It is worth adding that, with the WMS, the manager has access to real-time operation information (Sight Management), being alerted in case of delays and failures, which allows for quick corrections without impacting the customer. With the notable increase in competition in e-commerce sales, it is essential to have well-executed and flawless processes, ensuring excellence in customer service. Another advantage provided by the system is cost reduction, which can be directed towards pricing and, consequently, be another competitive advantage for the company.