COVID-19 de-escalation: how will it affect eCommerce?

Officially, today, May 11, the de-escalation phase begins for more than 50% of the population in Spain. A turning point for many companies as they return to activity. Others, however, are using these last two months to boost their online business, both on their platform and through standout digital marketing actions.

At the same time, as if there weren’t enough uncertainty, Google is using these days to roll out a Core Update to its algorithm. You’re probably wondering… Has it affected my eCommerce visibility? Don’t worry, at the end of the post we share some tips.

What have we learned during these weeks of lockdown?

Beyond new consumer habits, which go further than following top chefs on Instagram to try to recreate their recipes, working out online and becoming an expert in remote work and work-life balance, at the agency we’ve spotted some insights that will shape the future of eCommerce:

• • Online shopping. Once the “stockpiling” phase was over, eCommerce kept growing by more than 30% during April. This growth didn’t only come from essential goods. Fashion, for example, stands out, growing by more than 30% in April compared with the previous month. In some cases, aggressive offers, the influx of customers moving from “Off to On” and the arrival of spring led to sales quadrupling compared with the same period last year. As the following chart of aggregated sales across all Trilogi clients shows, in the first half of April the trend from the weeks before the state of emergency was recovered.

• Winners versus losers: marketing momentum. Many companies have seen the opportunity to grow sales through the only sales channel available. Multiple customer communication and promotional actions, online investment increases of up to 10x in certain leisure sectors, and site improvements have been key to boosting eCommerce performance. Others, however, decided to temporarily close their online store, with an immediate impact on revenue and the fear that some shoppers may have been won over by other brands.

 

• Online investment: our analysis of several client accounts shows that cost per click and all its derivatives (acquisition cost, cost per lead…) have in some cases dropped by up to 70%. The main reason is the decrease in the number of companies investing right now. How long will this last? Now is the time to maximize your investments!

 

• Acquiring new customers: without a doubt, the biggest medium-term opportunity. According to an analysis Trilogi carried out across its clients, the overall increase in new customers who had never bought from the respective online stores before was +18% compared with the same month last year. In some cases, this increase exceeded 35%. Now is the time to work on the most important thing for your eCommerce: repeat business.

 

• Customer service and shipping: this has undoubtedly been the biggest problem for many eCommerce companies. Staff reductions in many cases, the health and hygiene measures arising from COVID-19 and difficulties throughout the supply chain have often delayed order deliveries. This is entirely understandable given the extraordinary situation of recent weeks, and it has certainly put the whole delivery process to the test.

What are the keys to eCommerce as lockdown eases?

• Go Digital: if you’re still wondering whether boosting your online channel is really an opportunity, don’t hesitate! B2B/B2C businesses are moving strongly into the digital space. Adapt your sales model through On-Off synergies, look for new opportunities beyond your current model and think about how far your business could go with a professional eCommerce solution.

 

• If you already have an online store, the first thing to do is find out how Google’s new Core Update has affected you. This update, like most recent algorithm updates, aims to surface relevant and authoritative content in search. That’s why it’s crucial that you:

 

1. Work on your SEO rankings with original, relevant content.
2. Don’t copy content from other sources. Google takes this into account more and more when ranking.
3. Make sure your title is original, summarizes the content and is useful to the reader.
4. Make sure your content adapts as well as possible to mobile devices.
5. Create content regularly, backed by a distinctive SEO strategy

• Online investment: sow now to reap later. Expecting a large one-off investment to deliver an immediate return is difficult and complicated. Algorithms need time to adapt the offer, and expecting a visitor to buy from you without knowing anything about you is mission impossible. Build a full-funnel strategy that isn’t only conversion-focused but creates synergies at every step of the funnel. That way your leads will be ready for the most important moment: conversion.

 

• The new online consumer: in the coming months, many customers who bought online for the first time, probably because of how easy and convenient it is, will do so again. It’s important to analyze this segment, consider whether your site is ready to make buying easy for these new users and, of course, prepare your communication plan so that their Lifetime Value is as high as possible.

 

• Higher acquisition costs:many businesses are starting to bet on online. If selling online was already getting harder, with more digital competitors costs are going to rise. Prepare and rethink your strategy with one clear goal: increasing your online revenue.

Now is the time. Bet on online and get ready for a future in which, without a doubt, what we’ve lived through and digital will have a direct impact on your business’s returns. If you’re unsure how to approach your next digital leap, at Trilogi we’re experts in helping companies digitalize and multiply their online sales, both B2B and B2C. Tell us about your project.