The Influence of COVID-19 Outbreak on E-commerce and Payments
The worldwide outbreak of Coronavirus (COVID-19) is greatly affecting both the way businesses operate and how they receive payments.
The Negative Business Impact of COVID-19 and how to overcome it
People around the world are currently, or have been, in lock-down which has impacted everyday life, from the way they choose to spend their time at home to the way they pay for their purchases. Even though many companies see their online sales dropping, other businesses have been profiting from the epidemic. If you want to learn more about the consequences of the coronavirus epidemic on businesses and payments, keep reading.
Which industries and sectors are affected by the pandemic?
It is not just individual people and their families that have experienced a negative impact as a result of the coronavirus pandemic during these times. Data on the impact of COVID-19 virus on industries and ecommerce are constantly researched to keep companies and consumers up to date with the current trends. According to recent survey data, the industries affected negatively include tourism, transport, physical retail, and events. With lock-downs in most countries around the world, companies operating in those industries are the ones faced with the greatest challenges. On the other hand, there are industries that are benefiting and those include healthcare, grocery retail, consumer electronics, and beauty. Merchants operating in those industries and sectors will probably maintain, and even increase, their revenues during the pandemic crisis.
By looking at ecommerce trends during the virus outbreak in more detail, a global analysis showed that by the end of March 2020 ‘there was also a clear upward trend in toys and cosmetic products, with orders rising by an average of 90% and 64% respectively. The increase in the toy sector is most likely an effect of closed kindergartens and nursery schools, as parents need to keep their children happy. There were also moderate increases in the furniture and furnishings (17%) and electronics (9%) sectors. These should be related to an increased demand for home office equipment. The fact that the number of orders for furniture and furnishings is pointing upwards, while the volume of shopping baskets is declining, points to increased purchases of decoration and home accessories.’
Authorities around the world are stressing the importance of choosing cashless payments to contain the spread of the virus. And what better place for cashless payments than the e-commerce environment? However, just like when sales occur in physical businesses, online selling needs to be supported by a reliable payment system which will make payments processing an easy and efficient experience. Therefore changes to your business may be required in order to stay profitable.
How can payments processing become easy for merchants moving online?
- Set up an online store and integrate with a payment gateway - With many brick-and-mortal stores going online, digital payments are in great demand to keep the cash flow of the business and to continue serving customers. However, merchants who did not sell online in the past might find it difficult to start with operating an online store and handling online payments. One option that companies have is to set up an online store with an e-commerce platform (e.g. WooCommerce) which enables them to place their goods online with a few simple steps. To start processing digital payments, merchants who choose to set up a virtual store via an ecommerce platform can easily integrate with a payment provider – like Powercash21 – to start accepting payments online fast and securely.
- Get a Virtual Terminal for Mail-Order and Telephone-Order payments - Another option that brick-and-mortar businesses have, is to accept payments from consumers over the phone or via email without the need to set up an online store. This can serve as a temporary solution that will serve its purpose during the outbreak and will not require as much effort and resources. Merchants can display and promote their products or services on their website and accept orders over the phone or by email. A Virtual Terminal will be the ideal solution to cover this need. This way, your customers will still be able to buy products that they were purchasing at your physical store. To learn more about what a Virtual Terminal is and how it works click here.
How Powercash21 can lessen the negative business impact of Covid-19
If you are a brick-and-mortar merchant looking to process digital payments in order to sell your items, or an already established e-commerce merchant, we can help you keep operating by handling payments hassle-free for you.
Get in touch with Powercash21 to get a customizable offer based on your business’ current payment needs. While the world practices social distancing, we are happy to assist you first-hand with any questions that you may need answered.