Online retailers are economically very affected by the current situation. The inability to deliver, the closure of physical outlets or a change in consumer habits can lead to significant economic difficulties that persist at least until the end of the blackout period.
However, there are short-term solutions to promote economic continuity in these companies.
If you have not already done so, contact online trading
Physical shops that the French government classified as “not essential” had to close their doors just over a month ago. For companies that do not have an online sales page, this means a complete cessation of activities. The transition to online sales can therefore become a real growth driver. Setting up a high quality online retail website doesn’t happen overnight, and there are a number of initiatives to help companies that need to take this step.
Apply for gift cards
“”Buy today, get tomorrow.“No more last minute delivery solutions, it’s time for it Apply the gift card. Gift cards that have long been reserved for uninspired birthday gifts are now on the rise. The reason is simple: it offers the retailer an immediate payment so that customers can get their corresponding purchases back when the block is over. A simple and quick solution that creates constant liquidity, provided you communicate well on the subject.
Communicate with your most loyal customers.
To reduce the impact of the health crisis on your business, it is important to review communication priorities. We talked in a previous post about the importance of letting your customers know about any constraints your company faces in these difficult times. To ensure the continuity of the latter, you should double your efforts to communicate with your loyal customers by not only informing them of your situation, but also communicating new shopping solutions such as gift cards or offering a pre-order system.
Pre-ordering has many advantages
Like the gift card, Pre-order Allows you to create a quick source of income by communicating and selling a product some time before it is shipped. For companies that don’t want to produce too much or too little during this period, but also for companies that are unable to deliver before the end of the block, the pre-order can generate real profit in terms of time and cash flow and Help you Optimize your inventory (therefore only pre-ordered quantities are produced and delivered).
Apply discounts to increase your conversion.
For many retailers, good inventory turnover and a better move are essential to restore their business. So start analyzing your inventory by creating an inventory and identifying the slowest sales products. This way you know which products you have to discount. Regardless of whether they are discounts, flash sales or private sales, these methods remain effective to increase the conversion of your e-commerce website. Observe the usual seasonality analyzes: These can be affected by the blocking.
Opt for reduced or free shipping costs
For any online retail website, shipping costs affect your profit margins. To get a better conversion, you can use discounts on shipping costs. As a rule, the shipping costs influence the buying decisions of the consumers from the beginning when they can choose between several sellers. This commercial gesture can save your business.
Check the exchange and return deadlines
Flexibility is a sought-after quality in retail locations and is the focus of customer concerns. It is important to clear up any doubts about the possibility of exchanging or returning an unsatisfactory product. In view of the current situation, it is therefore important to keep customers up to date on information about longer exchange and return times and to take a certain margin into account. Nowadays, many online retailers offer a 3 month delay instead of 15 days or 1 month.
Reduce costs, at least until you can see more clearly
It is essential for companies in difficulty to update their accounting records. One of the most important expenses for online shops is marketing costs and payment from suppliers. First, it is important to think about the marketing tools that should be prioritized over this period and think about marketing efficiency. For the latter, many suppliers have a better understanding if you request deferral for certain invoices. A review of your procurement plan while the situation becomes clear also becomes a necessity.
Supporting caregivers: a virtuous approach
Healthcare workers around the world are now at the forefront in a tough battle. A variety of countries have associations, foundations, or aid funds to fund exceptional operations (making and donating masks, overalls, and other items of equipment that caregivers need). If your business proceeds allow it, you should donate a percentage of your sales (for total sales, for a specific product or range). By effectively sharing this information, your customers can appreciate the virtue of their purchase.
State aid to businesses
Governments know that the COVID-19 crisis is already having a major economic impact. For this reason, companies are being proposed certain exceptional relief measures by various governments. If your company is affected by the current health situation, do not hesitate to ask the responsible authorities about the measures and procedures to be followed
Today, no one can predict the impact this crisis will have on the retail sector. These few solutions can create real business opportunities from this extraordinary time. By enforcing them, taking into account the importance of rules and obstacles, you will develop a better shopping experience for your customers who will thank you for it in the future.
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