The coronavirus pandemic has required people all across the globe to change their daily habits. Right now, our daily life is drastically different, but even when we start to overcome this virus our lives are not going to immediately return to the way they were before. 

Due to social distancing requirements consumers have turned to eCommerce more than ever before. Some of these changes are because of specific goods people need right now, but some consumer behaviors are likely to last. 

Read on to find out what changes you can expect in consumer buying habits, market growth, and what this means for your eCommerce business. 

Changes to Expect in Consumer Buying Habits During and After Coronavirus 

COVID-19 has caused more people than ever to turn to eCommerce for supplies to make it through quarantines. Right now is the biggest opportunity in history for eCommerce. Now is the time to invest and be online with your business or get your business online quickly. Let’s examine eCommerce growth and what that could mean for your business. 

Growth Across Many Industries 

Many categories in the eCommerce space are experiencing exponential growth right now. Some of these categories are predictable. According to Stackline, disposable gloves have a 670% increase in sales over last year. Cough and cold experienced a 535% increase. Among the top 100 fastest growing eCommerce categories are 33 different categories of groceries. 

Also according to Stackline, some other categories that have seen major growth are bread machines — up 652%, weight training — up 307%, and computer monitors — up 172%. According to Glimpse, a website that tracks every topic across the Internet, there have been traffic spikes in searches for unexpected items like ukulele with a 57% increase, inflatable pools with a 235% increase, and sidewalk chalk with a whopping 4200% increase. 

These seemingly random categories have increased because people are spending more time at home and need entertainment options for themselves and their children, in addition to “essentials”. As we begin to shift back to life in public, social distancing will likely stick around for a while. Should people shift to avoiding crowds and spending more time at home, there is much room for growth in eCommerce in unexpected places.  

What Do Grocery Trends Forecast About Overall Consumer Behavior Shifts? 

If people get used to the convenience of buying groceries online a handful of times, chances of them just doing that moving forward are higher.

The U.S. Chamber of Commerce predicts these shifts in consumer behavior will stick. “Those first-time online grocery buyers have a high probability of converting to that way of shopping permanently.” 

According to a survey in Supermarket News 43% of respondents said they were extremely likely or very likely to continue using a specific grocery service after the pandemic dissipates or ends. 

Also, 30% of respondents who haven’t bought any groceries online during the past month said they’re extremely or very likely to do so via delivery or pickup in the next three months if the health emergency continues. 

The kicker is: all signs point to shifts in consumer habits reaching beyond groceries. Retail experts Lynn Gonsior and Bill Chidley at Chain Store Age predict, “Social distancing will drive more consumers to digital platforms. People who never once used a service like BOPIS, DoorDash, etc. will adopt new behaviors during this pandemic. And guess what — they’ll probably keep using them long after it’s over too.” 

Note: BOPIS refers to “Buy Online, Pick Up in Store” — learn more here 

Consumers are Forming New Habits 

It takes on average 66 days to form a new habit according to a study published in the European Journal of Social Psychology. 

Social distancing measures in the U.S. have been largely in place in the U.S. since the beginning of March, 2020. President Trump declared a National State of Emergency on March 13, 2020. Federal guidance currently says distancing measures may end at the end of April, but could extend to May. 

Consumers have had and will have ample time to form new habits as we continue with social distancing measures for the foreseeable future. 

Further reading: Here’s the research article about how habits are formed 

Markets Growing Now and in the Future  

Many markets are experiencing growth during the pandemic that will likely last moving forward. While some categories are expected, other surprising markets are starting to boom as they adapt to the eCommerce world. Let’s look at which markets are surging, what their growth strategies are, and how to apply those strategies to other markets. 

Surging Markets and Their Growth Strategies

Three obvious markets that are growing right now are food, pharmaceuticals, and healthcare. Many of these businesses relied on brick and mortar models prior to coronavirus. They had to adapt quickly to serve their customers during the crisis. Here are some strategies they employed. 

• Food – Brick and mortar restaurants and grocery stores are becoming delivery hubs and integrating technology to get their product out to customers. Many are using third-party app-based services to get their products into customers’ hands. Other food businesses are offering curbside, contactless pickup options. 
• Pharmaceuticals – An industry that largely relies on in-person sales is making the transition to a virtual workspace to support the doctors offices and patients they serve. Brick and mortar pharmacies are offering home delivery to adapt to the changing needs of their patients. 
• Healthcare – To free up hospitals for COVID-19 patients and avoid spreading the disease further, routine doctor’s appointments are being conducted through telehealth services.

Applying Growth Strategies to Other Markets

Other traditionally brick and mortar businesses can use similar strategies to adapt to life in a pandemic and post-pandemic marketplace. Here are some examples. 

• Move brick and mortar products to the eCommerce space – Retail businesses can adapt their business model to offer products shipped to customers, delivered, or offer contactless pickup from their retail location.
• Leverage technology to make service-based business virtual – For example, a real estate agent could offer virtual tours, and online seminars teaching people about different types of loans.
• Pivot your service-based business to include products that you can sell online – These can be physical products or digital downloads that can help your customers. For example, a hair stylist could market haircare through eCommerce and sell products to existing customers while reaching new customers in the online space. A music teacher could create an e-course or offer virtual live lessons. 

Examples of Other Industries Experiencing Online Growth (That May Last)

Other unexpected industries continue to grow in the eCommerce space, we are seeing shifts that may last well beyond this pandemic.

• Pet care – Pet owners are turning to eCommerce to get the supplies they need. Cat food is number 36 on Stackline’s top 100 list of industries gaining online sales, with a 162% increase over last year. Dog food is number 40 on the same list, with an increase of 159% over last year. Cat litter is number 53 with a 125% increase. Training pads and trays follow at number 54 with a 125% increase in sales. Bird food and treats are number 87 with a 91% increase in sales. 
• Art supplies – With children out of school and adults with more free time on their hands, many are looking for a creative outlet. Art paint is number 73 on Stackline’s top 100 list of industries gaining online sales with an increase of 104%.Toy clay and dough is number 85 with a 95% increase. 
• Beauty – As more people turn to inexpensive DIY options for beauty care they gain the skills to handle these services themselves, leaving potential for these purchases to continue. Hair coloring is at number 63 on Stackline’s top 100 list with a 115% increase in sales. Nail care is at number 71 with a 108% increase in sales. Skin care is at number 79 with a 99% increase in sales. 

Where to Focus your eCommerce Efforts Right Now

Coronavirus is impacting how eCommerce businesses are pivoting to effectively engage with their customers, marketing their products right now, and will change the landscape in the future. Understanding how this health crisis can affect your business will help you react and refocus your efforts. 

Now is time to increase your efforts if you want to grow your eCommerce business. Here are some ways you can adapt your strategy to set yourself up for success now and in the future. 

Provide Direction 

Many people feel lost right now, so as a brand if you can provide content that makes your customers feel like they have some kind of direction, they will naturally be drawn to any products attached to that. Whether it’s a recipe that draws them to grocery items, or a guide to an at-home day date that draws them to a gaming console, wine, or a board game – get creative with ways to help people, and lead them to subsequently use your products during this difficult time. 

Refocus Your Ad Spend Budget

Since President Trump declared the National Emergency on March 13, eCommerce sales are up 40%, according to Listrak. Businesses in the eCommerce space have responded by doubling their ad spend from February. MediaRadar reports that eCommerce ad spend was up from $4.8 million the week of February 17 to $9.6 million the week of March 9. 

As people are spending more time at home watching streaming services, reading and watching news, and playing video games, you can shift ad spend to those platforms. 

We’ve seen an increase in ad spend for mission-based marketing, cause-related marketing, and brand equity messaging.

• Mission-based marketing is an approach where you promote your core mission as the focus of your marketing communications.
• Cause-related marketing is when you partner with a nonprofit to promote their cause.
• Brand equity messaging helps shape people’s perception of your brand. 

In a survey conducted by IAB, “42% planned to increase spending on mission-based marketing, 41% on cause-related marketing, and 37% on brand equity messaging.”

Be sensitive to the crisis at hand. You want to be of service rather than just pushing sales. You can grow your brand while helping people gain access to everyday items and niche products alike that they need OR want, with the right messaging. 

eCommerce Sales Increases and What it Means for Your Business

What do increased eCommerce sales mean for your business? That will largely depend on the amount of work you put in right now to optimize your business for a post-pandemic world. 

Businesses Experiencing Growth Right Now

eCommerce sales are increasing by major verticals. Essential products were an obvious place we expected to see growth, but plenty of non-essential categories and markets have seen growth as well. Among these non-essential products are: 

• Video games
• Toys and hobbies
• Health and fitness
• Beauty and cosmetics
• Housewares
• Home improvement
• Apparel and accessories 

How New Routines Affect Growth

New daily routines will lead to natural growth for industries that may have once been considered non-essential. People are spending more time at home which leads to growth in the areas mentioned above. If you’re in one of these spaces, your business may naturally flourish. For example, in apparel and accessories, wireless bra sales have gone up 40 percent during this pandemic. 

When you’re in an industry that relies on person-to-person services, how do you shift your business model or message to become relevant again once consumer confidence is restored? Start messaging now to position yourself for post-coronavirus social norms and new consumer habits. For example, offering social distancing compliant pickup may be an option for your business moving forward. Get creative and put yourself in your customers’ shoes. Think about what they will need in our new world.

Have a restaurant, coffee shop or cafe? Check out Pineapple Pickup, our new product to help restaurants streamline curbside pickup orders. 

Invest in Your Website’s Backend Systems

Now is the time to invest in backend systems to automate how you keep track of internal processes that affect the customer experience, like your inventory. This pandemic has uncovered many weaknesses in both supply chain as well as antiquated systems and their hindrance on effective communication with customers. 

It’s also time to invest in automated communication and tracking for your customers. Williams-Sonoma did a study that showed customers checked on the status of a package a minimum of four times before it’s delivered. With even more added urgency during this time, customers are anxious to know exactly where their shipment is and when it will arrive. 

The effect of coronavirus is suspected to force retailers who previously resisted at least some eCommerce line of their business, to move that way. This crisis has shown the danger of being a solely brick and mortar business in our ever evolving digital world.

What Does Coronavirus Mean if You’re Already in the eCommerce Space? 

While it may feel like the world is on pause, resist the temptation to hit pause on growing your business. Now is the time to double down your efforts to lay the groundwork for your business during this time of uncertainty and in the future.

Increased Competition 

Now is the time to step up your game, from the usability of your site and automated systems to the quality of content and communication. Right now, at the height of uncertainty, you may not experience increased competition because people are not investing in new stores or sites. However, that is temporary and will change. To be ready to ride the wave of a boom, you need to think about your strategy and plan at the bottom of the curve, which is now. 

If you want to position your business to advance, this is the time to be doing the work internally and anticipate what consumers will want and expect in this new post-corona world. Increased competition is not immediate, but it’s right around the corner. We couldn’t agree more with marketer and SEO expert Neil Patel, “What I’ve learned from going through two crashes (the dotcom crash in 2000 and the real estate crash in 2008) is that the best time to double down is when others are not.”

What Can You Do to Remain Competitive? 

Making improvements now can give you a competitive edge during the coronavirus crisis and in the future. Learn what you can do to improve your site, infrastructure, backend systems, and customer experience.

Communication 

As a brand, the communication you put out to stay relevant can certainly impact your sales. Here’s some guidance moving forward. 

• Review all your messaging to make sure it’s relevant and sensitive. 
• Shift your ads to be helpful and educational instead of overly promotional.
• Be flexible in your plans and monitor the news to adapt to changing conditions. Things can change massively in a short time. Be in the know so you can adapt and pivot if you need to. 

Customer Experience

Better inventory management and shipping tracking capabilities can sometimes be expensive to implement. In a world where consumers are going to shift a lot more of their commerce activity online (also with the impending roll out of 5G) — you need to stand out in a good way, and user experience and convenience are huge factors.

Improve Digital Supply Chains

This crisis has exposed problems in the supply chain and can be used as a learning opportunity. For decades we have been focused on optimizing the supply chain to minimize costs, reduce inventories, and drive up asset utilization. But running extremely lean does not give any buffer or flexibility to absorb disruptions. This pandemic has revealed that many companies were unaware of the vulnerability of their supply chain during a global crisis.  

How can you improve moving forward? According to the supply chain experts at Deloitte, “Leveraging advanced technologies such as the Internet of Things, artificial intelligence, robotics, and 5G, DSNs are designed to anticipate and meet future challenges. Whether it is a ‘black swan’ event like COVID-19, trade war, act of war or terrorism, regulatory change, labor dispute, sudden spikes in demand, or supplier bankruptcy, organizations that deploy DSNs will be ready to deal with the unexpected.” 

Note: Learn more about DSNs here and here. 

Implement AR and VR

New technologies like Augmented Reality (AR) and Virtual Reality (VR) are other investments that can improve your customer experience and position you for growth. 

Virtual reality can give your customers a more brick and mortar shopping experience from the convenience of their homes. Virtual reality recreates products that exist in the real world digitally. For example, many car companies offer virtual reality tours of their car interiors so you can get an idea of what everything looks like without going into a showroom.

Augmented reality superimposes a layer of information on top of your screen. For example, if you are selling home decor, you could have an augmented reality application that would superimpose images of your products on real time images of their homes to see how they would look. 

We Want to Help You 

With the uncertainty in our world and our economy, it can be hard to look ahead. Some days it’s tough to put one foot in front of the other. We will make it through this crisis together and come out stronger on the other side. 

If you’re looking to virtualize some or all of your business to adapt to new consumer behaviors, we can help you set up a brand new eCommerce store or bring one you already have up to par with the current landscape. Our senior Magento, Shopify, and custom web app developers are ready and able to help you make the digital transformation necessary for your business to thrive in a post-coronavirus marketplace.

If you’re already in the eCommerce space, we can help you make improvements to your sites infrastructure and backend systems so that you can remain competitive. A surge in any industry will mean more competition, so if you want to maintain or grow market share you need to be ahead of the curve. We’re here for you!