It has become evident to the world that the e-commerce industry is growing exponentially. Companies, big and small, are closing down their stores and dedicating all their resources to online shopping.
Some companies have decided to walk a different path when it comes to pivoting and figuring out how to remain relevant, productive, and in business—without straying too far from the organizations’ primary activity.
In a Time of Confusion—Businesses Create!
Inditex, one of Spain’s largest manufacturers, has decided to alter its business model for some of its brands, such as Zara. While sales dropped by 28% (from $33.5 billion to $24.2 billion), online visits reached 5.3 billion—a 50% increase from the previous year. The fact that 77% of sales came from online channels helped the clothing manufacturer decide to close 1,200 stores worldwide.
Room, a company that designs and fabricates office phone booths and meeting pods, found itself almost out of business after the pandemic struck. Its solution? Turn the phone booths into COVID-19 rapid testing units. The booths, made of recyclable materials and plexiglass, were easily assembled, transported, and most importantly, disinfected. This ingenious move by Room to expand its target audience into healthcare and effectively bring more business, allowed the company to stay afloat—all while helping the community combat the pandemic.
When this startup lost the majority of its business within a week, Keep Your City Smiling decided to launch a new business. The Seattle-based company, previously known as The Snap Bar, started selling gift boxes to remain in business, as well as to support small businesses that are trying to weather the COVID-19 storm.
The silver lining that emerged since the onset of the pandemic is the enthusiasm, willingness, and effort business owners are willing to contribute to maintain jobs, help the community, and continue serving.
UNCTAD acting Secretary-General, Isabelle Durant, noted that businesses and consumers that utilized the digital medium helped mitigate the economic downturn. Imagination does spark in dire situations, and we are still in the early stages of this inevitable digitalization.
Is Everyone Benefiting from the Digitalization of Business Transactions?
The other side of this digital coin, however, is not as developed. Many underdeveloped countries have not made use of these opportunities for a host of reasons.
The President of the UN General Assembly, Volkan Bozkir, advised that, “We need to recognize the challenges and take steps to support governments and citizens as they continue to embrace new ways of working.”
The issues that inflict these underdeveloped countries include an overreliance on funding, a lack of trust between consumers and online businesses, as well as the below-average digital skills among the population.
It is clear that countries that utilize the potential of e-commerce are better positioned to benefit from global markets for their goods and services. While those that fail to do so “risk falling behind even further”, Shamika N. Sirimanne, Director of the Division on Technology and Logistics of UNCTAD, reported.
It is true that leading digital platforms have benefited greatly from this change in attitude and purchase behaviour. But, that doesn’t mean that startups, small businesses, and self-employed entrepreneurs can’t benefit from today’s new method of conducting business.
A platform, called: The UNCTAD-led eTrade, served as a global helpdesk for developing countries.
The Netherlands, Germany, and Estonia funded this platform to shine light on the e-commerce realm. The initiative strives to provide information, resources, and general aid to entrepreneurs and businesses.
To raise awareness, mitigate risks, and hastily make use of the e-commerce opportunities, the platform identified ways that could help businesses in underdeveloped countries overcome the pandemic’s unyielding challenges.
The Bottom Line
The pandemic has forced the world to make drastic changes.
СOVID-19 has changed the way companies approach e-commerce. At first, it was a lucrative, side avenue to augment their revenue & profits. Now, it’s a vital channel that should be prioritized.
Well-established businesses managed to overcome this hurdle to stay in business. Many even decided to remain purely digital: conduct business solely through e-commerce platforms.
Businesses that found their products/services to become unimportant, had the brilliant idea of pivoting—awarding the consumer with value, all while helping to mitigate risks and ensure that the community and small businesses stay buoyant.
Underdeveloped countries are facing major challenges due to pressing issues within their society, such as poor digital awareness/skills, reliance on soon-to-be obsolete methods (cash)and the lack of trust between consumers and businesses.
Initiatives, countries, and industry leaders are keen on keeping up with the transformation. Through providing resources, information, and helpful platforms, everyone is hoping to further develop commerce’s new state.
