It’s no secret that the global pandemic caused by coronavirus COVID-19 has impacted the world on many different levels. Most businesses, regardless of industry, have been forced to adjust to the new normal, including moving employees and operations to work-from-home. And most states, if they haven’t already, will soon result in closing all non-essential businesses, including retailers’ brick-and-mortar stores. While this time can be stressful and scary, there is also some hope on the horizon as we lean into this new Digital Age.
Just because people are limited from directly purchasing products in stores, it does not mean that the demand for those products has decreased. Even with Amazon’s recent announcement about pausing shipments for non-essential goods (which you can read more about in our last blog), there has been an increase in sales for products in various industries. Most obviously, items that fall into ‘essential’ categories for virus protection such as groceries, pharmaceuticals, paper-goods, and health and safety supplies, have seen a significant surge in sales. According to Adobe data, the purchase patterns for these categories have seen increases ranging from 59% to a whopping 817% since the start of the year. While ‘panic-buying’ is trending right now, so that people feel secure and stocked up during these unprecedented times, we will see online shopping increase in the upcoming weeks for other verticals as well as people try to make the most of this new normal.
According to a Gartner, Inc. survey of 800 global human resources (HR) executives, about 88% of organizations so far have encouraged employees to work from home. The ability for major corporations to be able to adapt to an entirely new work set-up in a short amount of time has been nothing short of impressive. Digital communication tools such as Slack and Zoom have allowed companies to create a smooth and collaborative operation even while physically separated. This information has played into the idea that working-from-home may become a more standardized practice across the globe, long after this virus is around.
Before any of this in our fast-paced world, it seemed impossible that physical disconnect and home confinement can still foster productivity, collaboration, and community; however, that has swiftly proven to be our new daily normal. While there are many unknowns still to how this will all play out, we should shift our mindsets to celebrate and embrace our ability to adapt and succeed, no matter the conditions, thanks to technology.
With everyone being forced to stay at home, digital purchase power is stronger now than ever before. According to Adobe, eCommerce is up 25%, and the companies that have invested in digital transformation are benefitting from this stay-at-home time. This includes many verticals, including restaurants, retailers, and even at-home workout equipment. It has been shown that consumers are also getting better deals online than in stores as well during this time. Adobe stated, “Consumers continue to get more for the dollars they spend online. The digital purchasing power of consumers is up 3% year-over-year and has increased 20% since 2014, with $1.00 buying today what it would have taken $1.20 to buy in 2014. Over that same time, a dollar spent buying a similar set of goods offline lost value, with $1.00 in 2020 buying what would have only cost 88 cents in 2014.”
With all of this being said, as scary and confusing that this time may be, we can find hope in the benefits that this Digital Era is providing us. Companies are able to maintain business as usual even while everyone is working from home, and most purchases are simply being transferred from in-store to online. This time has shown us what digital can do for us and emphasizes the importance of it in our lives.
While some companies may be struggling to navigate these unprecedented times, as eCommerce experts, Amazzia is here to help! We have an organized process in place that will allow our brands to make it through the tough times efficiently. If you feel under pressure during this uncertain time, please feel free to reach out to our Partner Development Team at Amazzia and we will find a solution to help you continue to grow your business.