The COVID-19 virus is spreading around the world, and the global economy has experienced a decline, unlike anything we have ever seen.
Some estimates suggest that the pandemic could cost $2.7 billion, or about 3%, of the world’s GDP. This is a far cry from the SARS epidemic of 2003, which was estimated to cost 40 billion, or just 0.1%, of the GDP.
The pandemic affects almost all types of businesses. You have likely been affected if you run an online shop.
Industry reports indicate that those affected by quarantine or social distance measures, which exist in almost all countries, have moved a large portion of their grocery shopping online. The trend was similar to that seen in China and Latin America.
There are two possible explanations for why many online stores do not have this problem:
- Consumers are less willing to buy and more sensitive about price.
- Governments have imposed quarantines to limit warehouse and transport activity. This has damaged the supply chain.
Owners of online stores can play an important role in the economic system, even in tough times. The founders of ecommerce stores can work on improving the services they offer to customers.
In this post, we will look at five ways to overcome the issue if your sales have dropped since the quarantine started.
These are not miracles. There is a lot of pain in every business right now. If you want to minimize the effect of COVID-19, then you must build better relationships with your existing customers.
This crisis has caused a downturn in the economy, and this is likely to result in higher unemployment. According to SaleCycle this change in online purchasing habits.
The abandonment rates of shopping carts are increasing in most industries.
AOVs are increasing in industries like grocery, general retail, pharmaceuticals, and sports. The AOV is increasing across industries such as grocery, general retailers, pharmaceuticals, and sports.
In difficult economic times, people tend to be reluctant to buy. Marketing can use scarcity to encourage consumers to make purchases.
Create Time-Limited Deals
Offer time-sensitive offers. There are two ways to go about this.
- They can be included in forms that ask for opt-in, like pop-ups and slide-ins.
- Send a message to your Subscribers about
If you spend longer on your site (e.g., more than 60 seconds) or view more pages (e.g. You can offer discounts to people who spend more time on your website (e.g. More than 3 pages ).
Some online retailers offer special discounts for customers who sign up for their mailing lists.
You can use this strategy to introduce your subscribers and show them what you have on offer.
Even if your subscribers don’t take advantage of the offer, you can still keep them engaged. The customer may still decide to make another purchase in the future.
You can bundle your top-selling products with a free product or one that has a significant discount.
If you know that some products work well together, it can be a great idea. By analyzing your customer’s past behavior, you will learn what they like.
Quantity Limit Offers
Scarcity can be used in other marketing campaigns than just time. You can use it to convince your clients to purchase something that they were on the fence about.
Online fashion retailers often give limited-time discounts on their products. They do this to clear out unsold stock and prepare for the new season. This is a win-win scenario.
This is a common tactic used by online retailers to take advantage of their customers. They run sales constantly and keep restocking “limited edition” products.
You can use this type of campaign to boost sales.
It is possible to create similar discounts to the ones shown in this example. This includes creating slideshows or pop-ups that highlight discounts and any newly added categories to your ecommerce platform. It’s Shopify, I assume.
You can use apps to promote your campaign.
- Ultimate Scarcity Pro
- Smart Scarcity Timer
- Ultimate Sales Boost
On the product pages, you can highlight the fact that the stock of your products is limited. This will increase the pressure on consumers to act fast.
Many apps can make you the most out of limited resources.
SaleCycle’s study shows health products are a great way to increase sales.
You can use the few products that you own to explain your situation.
Use this offer to say thank you to your customers for their support in growing your business.
You should not lie to customers about your limited supply. It is even more important in uncertain times.
Shipping Times Updated
You should inform your customers about the pandemic’s impact on their orders.
If you think your customers won’t understand, adjust the shipping times accordingly.
Include a message on your checkout or product pages – but ideally, both.
Rob Ward is a co-founder of Quadlock and teaches our Ecommerce Masters’s Course. He excels at it on his product page:
Use this message to let your clients know that they may have to wait longer for their products. Let them know what you are doing to help them in these tough times.
Although Certain Lending may not be an e-commerce business, they make a small but important gesture to let their clients know they are still around. While some might not think it is significant, this little act helps assure customers of the company’s continued existence.
Even if Amazon is your customer, you should tell them that this problem will not go away. Tell your customers the issues.
- Make your products
- Your warehouse
- Transport company
- Employees (if you have any)
Explain to your clients that the quality of their purchase will be lower. They won’t mind.
Change Your Paid Ads Strategy
The cost of Facebook ads dropped significantly in the past few weeks. Nick Shackelford said this during a student webinar.
Socialbakers found that CPM across all industries had dropped by 50%. This makes sense given the fact that brands are not spending as much money on marketing.
The CPCs have also fallen from the previous year.
Nick said that you should spend money on campaigns to increase brand awareness, not to boost sales. Your goal is to encourage people to sign up for your mailing list and enter your funnel.
Nielsen’s survey of consumers found that many people have returned to normal life, with renewed health concerns.
You should update your advertising message.
Include in titles, headings, and descriptions the ways that customers can help you.
- Avoid sickness
- Stay Healthy
- Regaining strength after an illness
- Stay Clean
- Be on your guard
Working remotely is a common way to combat isolation.
Your ads should be updated to reflect the times.
Reduce Your Prices Temporarily
The price sensitive people will always save more money. It does not mean they won’t buy anything.
As soon as you learn that the economy has problems, you start saving money.
This doesn’t necessarily mean you shouldn’t use your money when you have some saved for these situations. It does, however, mean you are more reluctant.
A once-cheap product is now not as cheap. It was once a good price.
An owner of an online shop may temporarily reduce prices to encourage customers. You will see this at old-school souqs and markets: If the price of the product is high, the seller might lower it until the buyer agrees.
Does this seem to be the best strategy? No, that is not the right answer. It might make sense in difficult economic times to reduce your price.
The idea is not a desperate one. It’s a common practice among e-commerce shops, which leads to their bankruptcy.
The word temporary is key.
Steve McLeod explained this very well in an interview with Nathan Chan. McLeod explained that cutting costs could make it hard to reach new clients. He recommends focusing on existing customers instead.
You can target your lower price only to those on your mailing list or previous customers. This would be like mixing up the first idea, which is to use scarcity as a way to boost sales. It’s a great way to draw attention to a short-term reduction in prices and to encourage people to purchase your product now.
If you make low-frequency sales, this strategy may not be for you. This strategy is beneficial if your customers buy only your product once or twice a year.
These tips will help you to overcome the sales slump that may occur during this crisis. You can’t predict what effect it will have on your local economy, or for how long. All we know is that your marketing strategy must be revised.
It is an excellent time to reflect upon your company, its mission, and the way you treat customers. Consider how to improve your business in every area. You will be remembered for getting your product to them on time and helping them through this difficult crisis.
It doesn’t matter how difficult the current situation is, because it will eventually pass. “
By using the information provided, you can improve your business.