Online Marketplace: The Role of E-commerce in the Pandemic

By Angela Castor

The marketplace faced a tremendous change brought by the pandemic. Along with it, the consumer journey of shoppers also changed. With safety as their topmost priority, we see consumers resorting to online channels to buy their needs and perform their daily tasks due to the limitations of going physically to traditional, brick-and-mortar stores. While some businesses thrived amidst the pandemic, some had no choice but to opt for temporary closure. The fine line that differentiates these two results among businesses is the adaptation and utilization of E-commerce. Today, E-commerce isn’t just a point of convenience─ it means survival and transformation for businesses and safety for consumers.

E-commerce is not a new concept for Filipino consumers. With the infiltration of the likes of Lazada and Shoppee, shoppers are more or less familiar with the process that takes place in digital platforms. Even at the regional level, consumers are familiar with food delivery apps such as Grab Food and Food Panda. Pre-Covid, some businesses are starting to realize just how important it is to up their digital presence and digitize their operations, but the need was only accelerated when the pandemic happened.

 

Resistance to Innovation

Yet despite seeing the urgency of adapting to E-commerce, business owners still expressed hesitation and resistance. Mostly this behavior is seen in businesses managed by older manager-owners who are used to doing things in ways and processes they already know and are comfortable with. This might also be attributable to the fact that older generations would normally tend to resist new technologies and innovation because they are not as risk-takers and flexible as before. However, one expert noted that there’s no place for “we’ve always done it this way” in organizations anymore and the consequence of the pandemic is a glaring enough proof for this.

Some would argue that they don’t necessarily need the digital shift as the lockdowns and quarantine are just temporary hurdles of the business and everyone will start to visit the physical stores once things normalize. But see, this isn’t a choice between online or offline, physical or virtual. In the webinar with business owners “Marketplace in the New Normal”, it was emphasized that online presence does not kill their physical presence. If anything, it encourages customer loyalty and repeat customers by giving consumers different options to complete their buying journey. What owners need to understand is that  the “new normal” challenges the businesses to implement an effective, appropriate, and balanced use of both online and offline channels to create a solution that satisfies their buyer’s needs and their channel preferences. The SM group understood this and quickly acted on having a hybrid experience for their shoppers. A method called “Click and Collect” where you book the items online and collect it physically in the store. For essential goods, they even have it delivered.

 

What Industry Experts Say

As to the future of E-commerce moving forward, it is foreseen that the shift to E-commerce is likely to be permanent, and online services and subscriptions will continue to increase according to the WARC guide: Marketing in the Covid-19 recession. In a TV interview with the President of Kantar Philippines, Gary Deocampo shared that more than half of those who answered their survey said that they will continue buying from online stores they experienced buying from during the lockdown, and almost half feel that they are inclined to continue purchasing products that they already tried out during the ECQ. This is something that business owners who are starting out can look forward to in the post-COVID era. Though they would have a lot to prove, it somewhat equalizes the playing field and shows that they have what it takes to compete with big players.

However note that digitalization isn’t just about marketing or advertising─ that’s just half of the funnel and doesn’t paint a complete journey for your customers. The shift to E-commerce should not be the end goal as well, but a means to an end. Going digital is just a start and the end should be what your business objective is in the first place, which is to make profit.

 

Angela Castor is the Sales Manager of FutureSmart Resources + Strategies Inc., an Asian company committed to bridge gaps through technological innovation and data-driven strategies. She is also a former market researcher and brand marketer in one of the biggest research firms in the country and financial service industry, respectively.