Despite the unceasing efforts of health experts and the massive preparation of world governments, Coronavirus has still managed to bring the world to a near-standstill. The COVID-19 pandemic did not just threaten the life and well-being of the populace, but ultimately ravaged the multi-faceted global economic enterprise.
For financial institutions, commercial companies, entrepreneurs, and business owners alike, COVID-19 has had a huge impact on the global economy, as well as the obvious health consequences. Global stock markets fell as countries, states, and cities implemented a lockdown on their areas of responsibility.
The points we will be discussing in the succeeding paragraphs will focus more on the impact of COVID-19 on the retail and eCommerce industry. We will also be sharing the observation of our Seller Snap team concerning the response of particular stakeholders during the global crisis.
How COVID-19 Impacted the Retail Sector
Along with the manufacturing, tourism, and transportation industry, the retail industry is among one of the highly affected sectors during the pandemic. Malls, shopping centers, and retail outlets had to reduce their operating hours or even totally stop their operation amidst the pandemic.
It is not only the companies and business owners that felt the impact of the pandemic. Even consumers have been affected, which has led to changed shopping behavior.
The purchasing habits of retail consumers changed at unprecedented speed. We have observed that a portion of the traditional channel through which goods and services are ordered has been diverted towards the eCommerce industry.
The Surge of eCommerce
As a result of the measures taken by local authorities to stop the spread of the Coronavirus, lockdowns, quarantine, and social distancing were implemented. Such implemented solutions quickly became part of the new normal. In response, consumers stormed various online platforms for their retail needs.
With limited access to grocery items and other essential products, consumers turned to eCommerce stores like Amazon for their necessities. Such shopping practices resulted in increased online store activity. The eCommerce industry has experienced a surge of patrons amidst the pandemic.
Amazon Responding to the Crisis
As a trusted brand, Amazon made necessary adjustments in response to the COVID-19 pandemic. The health and safety of employees and customers have seemingly become the top priority of the tech-giant.
As a testament to their concern, they are expecting to “invest approximately $4 billion on COVID-related initiatives,” as posted on the Amazon Blog.
Apart from that, we have also observed that Amazon has also made some adjustments to its operations including the delivery schedules and prioritization of particular customer demographics who are in dire need of essential goods and care.
Amazon likewise extended their kindness to the global community as a whole. By launching a “$20 million AWS Diagnostic Initiative,” Amazon hopes to accelerate COVID-19 research. Similarly, the company committed €21 million to support countries ravaged by the COVID-19 pandemic.
The Response of Other eCommerce Participants
As we have mentioned earlier, a large number of consumer groups opted to shop online for their necessities and other consumer needs. As a result of such a shift, other active participants in the eCommerce industry quickly made some adjustments on their own.
Online financial service giants, PayPal and Payoneer, likewise had their way of responding to the current global crisis and the demands of the so-called new normal.
At the onset of the COVID-19 pandemic, Payoneer implemented proactive measures to secure the safety of its employees and likewise ensure the continuance of their operation for the safety and security of customers’ funds.
On the other hand, apart from operational and managerial changes, PayPal also worked “with the US Federal Government to participate in the Paycheck Protection Program to provide access to loans for [our] merchants.”
How Seller Snap Responded to COVID-19
As one of the trusted Amazon repricers in the industry, our company has also made some adjustments to improve our services during this trying time.
On the technical aspect of our service, we have been constantly monitoring major changes and concerns in the Amazon seller space.
Research and investigations were conducted by our team here at Seller Snap to provide a clearer picture of issues such as the observed Amazon FBM preference over Amazon FBA.
Similarly, the issue of price gouging was also monitored by our team. Hence, allowing us to equip customers with more sensible and ethical repricing strategies.
And just most recently, our dedicated support team probed into the issue of Amazon Buy Box Non-Rotation. If you want to learn more about this recent concern, you may CLICK HERE.