In the wake of the COVID-19 pandemic, many businesses are left with an uncertain future. Many brick and mortar businesses have closed their doors indefinitely (some will reopen, others not so lucky), and retailers are looking to ecommerce to secure their brand a future.
The fate of ecommerce has a lot to do with the regulations in your country, some are able to continue with business as usual whereas some do not fall under ‘essential services’ and cannot sell, or fulfill orders due to being unable to make use of courier services. However, ecommerce stores are most likely in a safer footing for the current and immediate future climate - provided they can still use this time to convert sales or grow their business in some way.
While there has been an increase in offline stores going online, existing ecommerce stores are intensifying their efforts to turn inventory into cash while they still can. Some are using lockdown time in inventive and productive ways to set themselves up to their advantage for when things are back to business as usual. Wherever you are in these turbulent times, there are some strategies you can use to make the best of things - which includes what you need to do right now and what you can use your downtime for to your advantage.
Depending on where you are in the world you may have certain restrictions that will affect your ability to fulfill orders. However, if you are still able to make sales with the intention to ship as soon as those restrictions are lifted, then communicate this to your customers in big bold letters on your website and via email. If you can still run business as usual you need to tell your customers exactly that on all your platforms, because they will assume you are closed like most other businesses.
Be honest with your customers and compassionate to what they too are going through, this isn’t the time to ‘cash in’ on this pandemic as an opportunity for business (think how tacky a ‘Coronavirus’ sale would sound or a #COVID19 voucher code!) but for many of us it is our bread and butter and so necessary that business goes on. That’s not to say that your products or services won’t make a profound difference to your customers’ lives. Communicate to your customers how your products or services can be useful to them during this time, eg. how buying your (for example) stationery catalogue will enable them to run their business from home, keep their children entertained, allow creative expression for boredom busting, or even play an important role in homeschooling, etc.
If your current business model does not work in the current climate, consider pivoting your business in such a way that it can thrive online. If you previously only had a physical store, bring your retail online (many brands are offering this service for free and now is a good time to do it).
Consider offering subscription services either monthly or prepaying 3 - 6 months upfront. You will then have some cash to operate on and your customers can relax in knowing they will be getting their product/service in the coming months regardless of their cash flow. You can even offer ‘buy now, ship later’ options for customers who still want to shop now but are happy to wait until restrictions have lifted.
Diversify your product range, if you previously only sold physical products, consider adding some digital products eg. if you sold books before, consider adding eBooks to your catalogue.
If you’re concerned about the investment in pivoting your business model, consider how uncertain the future is and how waiting out the pandemic could mean running your business dry. There is a lot of help out there - we’ve compiled a list of brands currently offering help to the ecommerce industry either for free or at huge discounts.
A lot of brands make the mistake of cutting back on their marketing efforts, when they should be redoubling them. Marketing is where your leads are being generated, so it would not make sense to cut costs such as online advertising.
Many advertisers are pulling out which means that ad prices are going down, so now is actually the time to be increasing your Google Ad and Facebook ad spend.This will help keep the customers coming in, and hopefully the conversions ticking over. The only marketing channels you might need to pull are experimental marginal channels that aren’t driving leads or pushing revenue.
Invest some time in going over your expenditures, grouping your nice-to-haves (expense) and your ‘necessaries’ (investment). Reviewing these and cutting out unnecessary expenditure will ensure that you don’t burn through savings too quickly.
Your investments will have a demonstrable ROI (return on investment). These will include your online ad expenditure, email marketing (such as abandoned cart recovery), and content marketing. These serve to build your business by directly driving revenue.
You might consider cutting out some of your SAAS (software as a service) subscriptions that were convenient to have and which you can suspend while you are cutting costs but pick up later. These might include Music licensing software, full stock image database access, etc. which you can get away with by only purchasing what you need when you need it rather than all-access subscriptions.
Now is a good time to get to know your customers. Reach out to them on social media as a leader in your space to offer compassion and any advice that you can offer; social media engagement rates have never been this high. Your compassion and authenticity now will be remembered long after the pandemic has passed, and it will become part of the personality of your brand.
Now that you have all of that in place it is time to use your extra time to improve your Operations. A lot of us are finding ourselves with a lot more time on our hands than before, and while we are all dealing with the anxiety and fear of the unknown, keeping busy helps to feel in control - not to mention putting us in better stead for when things are a bit more normal again.
While you’re working from home or piloting the ship alone, there are still some things that you can do for your online store that will help improve your Operations and put you in better stead for the coming months, here’s a quick checklist:
All these improvements will result in a site that loads faster, is more efficient at converting leads into sales, and attracts more organic leads via search engines. This will not only benefit you now, but it will put you in better stead for months to come - and perhaps change the way you approach operations on your website forever, for the better.