OneWorldExpress
Ecommerce is by no means a new phenomenon.
It has been growing in prominence throughout the past decade due to a variety of factors, from Britons’ improved access to the internet to the declining importance of physical retail outlets. However, COVID-19 has catalysed the growth of eCommerce businesses.
With social distancing measures preventing individuals visiting bricks and mortar outlets to make their purchases, many have turned to online shopping.
Consequently, we have seen an eCommerce boom.
Adapting to demand
The figures speak for themselves; the OECD estimate that eCommerce represented a 31.3% share in retail expenditure in the UK in the first two quarters of 2020 – a significant rise from just 17.3% in the first quarter of 2018.
Clearly, consumers and businesses alike have become heavily reliant on eCommerce throughout the pandemic. And consequently, businesses which failed to facilitate online trading risk falling behind.
Take, for example, the fashion industry. The ONS reported that the sector’s November 2020 sales within retail shops had fallen by almost one third (30.5%) when compared to February’s levels. To compare, online fashion sales have gone from strength to strength; online sales in November 2019 accounted for 18.2% of fashion sales – by the following November, its share had risen to 39.3%.
Such data signifies that eCommerce businesses have, particularly throughout the pandemic, tapped into consumer and businesses’ desire for convenience. After all, in the context of a national lockdown, the fact that a business or consumer’s needs can be met without having to leave their home will be highly valued.
However, this begs the question, will online trading remain as prominent, even as the UK begins to emerge from lockdown?
The future of eCommerce
It certainly seems that online trading is here to stay.
That said, eCommerce businesses also have their drawbacks. And these could hinder the growth of said business, if not properly addressed.
For example, many people still see the value of bricks and mortar retailers, as well as face-to-face trading. To recycle the example of the fashion industry, a clothing manufacturer would be unlikely to purchase a new type of material in bulk, before visiting a factory to examine the quality of the material, first-hand. Ecommerce businesses may struggle to match guarantees of such quality control.
Further, some eCommerce organisations fall short of offering clientele efficient and transparent courier solutions. For example, consumers and businesses will expect certain businesses to offer them certain securities when it comes to damaged goods. They will expect the returns process to be simple and transparent – failure to offer this could damage the reputation of eCommerce businesses.
To counteract this issue, it would be beneficial for these organisations to consult a logistics expert, to ensure they have the correct processes in place. For example, our team of experts at One World Express can offer a thorough audit of an eCommerce business, make the appropriate recommendations – be it different tracking software or courier options – to enhance its logistics services.
It is clear eCommerce is thriving and will likely do so even after the UK’s post-COVID recovery. However, such businesses must continue to review and improve its customer service and logistics strategy. Otherwise, the success of this booming sector could plateau.
