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Transformations are underway. The ground is shifting positively for companies in ecommerce as a result of the coronavirus and Amazon’s poor performance.
First came social distancing, the shutdown of businesses, an increase in remote working and a surge in online shopping.
Then, the unthinkable with the world’s largest online seller. Despite an overwhelming need for efficiency and innovation in the COVID-19 pandemic, Amazon has been failing in customer service and was forced to make drastic changes to the detriment of thousands of brands.
How is that possible? A report in The Wall Street Journal had an eye-opening explanation.
Quite simply, with high worker-absenteeism and a dramatic increase in online demand, the newspaper says Amazon can’t handle the demand and has been restructuring its web site to sell less products to focus on essential health-related products.
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Brands that sell on Amazon couldn’t possibly be happy with this practice and the decrease in their sales. Furthermore, Amazon’s strategy does not even appear to be working.
For instance, note the following message from a close associate of mine describing his wife’s ordeal in dealing with Amazon’s failure in processing her purchase of a vital coronavirus-related product:
“…ordered some masks and paid $10 extra for 2-day shipping and now, over a week later she learns it was shipped to somewhere in CA, not her fault. But we’re out the money and now she has to deal with Amazon to try to get it straightened out, no small effort for her lack of hearing.”
One has to wonder how many other consumers are having bad experiences with Amazon in this pandemic, and how long brands will be patient and continue trying to rely on Amazon as a partner.
Brands might realize they should consider building their brands’ prominence and using other marketing channels in order to manage and control their destinies.
Meantime, Amazon’s performance and the rise in online shopping as a result of the coronavirus are an opportunity for growth.
Here are strategies to exploit Amazon and the pandemic, and to attract and keep customers:
Double down on managing your inventory
Customers get tired of inefficiency and cancellations. When happy, consumers will tell a few others.
When unhappy, consumers will go on a crusade complaining to friends and relatives and they will complain loudly on social media.
Don’t let your published inventory shrink too low. Or else you’ll suffer both short and long-term.
Conservatively estimate availability
Be careful with your lead times, especially on out-of-stock items and custom orders. Supply chains, shipping and employee sicknesses are disrupting ecommerce.
Stay Connected with Your Customers Even During a Crisis
So add some cushion and extend the availability dates. If you deliver products early, your customers will be delighted.
For hard-to-get products with uncertain delivery dates, delete them from your online search results.
Communicate tracking numbers ASAP
With all the possible uncontrollable uncertainties in delivering products, you’ll minimize customer inquiries and complaints if you’re proactive in keeping customers apprised of your order-processing.
Reassure customers you’re doing everything possible to serve them efficiently.
And be sure to graciously thank them and include buyers’ remorse statements to remind them of the value they’ll be getting.
Personalize your customers’ shopping experiences
It’s vital to create positive memories. Communicate your shoppers’ order statuses. Follow up. Afterward, inquire about their satisfaction.
Strive to develop relationships
Appearances are important. Customers are frustrated and inconvenienced with the COVID-19 crisis. Be empathetic. Show that you care.
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Evaluate your return and exchange policies
Remember many of your customers are stuck at home. Understand the inconvenience to them if they have to pack and ship returns to you.
So include pre-paid shipping labels along with pickup service. If you can, extend their refund and store credit dates to 60 days or longer.
Stay away from politics
Don’t limit your marketplace potential by taking sides politically. If you do, you risk half of your shoppers disagreeing with you and, of course, alienating them.
Treat all shoppers with equal priority
Give care to everyone – that includes first time and low-budget shoppers. They might give you great word-of-mouth advertising and become loyal, repeat customers down the road on more expensive products.
From the Coach’s Corner, here are related ecommerce strategies:
Ecommerce: Strategies to Pick the Right Digital Partner – True, if you don’t have the necessary expertise, ecommerce services can be expensive. So to maximize value for profitable sales, it’s imperative to choose the right digital agency as a partner. Here’s how.
Primer for Profitable Direct-to-Consumer Ecommerce – Not to disillusion you, but not every product can sell profitably in a direct-to-consumer Ecommerce model. Here are some due-diligence steps for profits.
Hiring an Ecommerce Manager? Recruit for 7 Skills – With the ever-increasing importance of ecommerce for business revenue, certainly you want to hire the right manager. Here’s how.
Clothing Ecommerce: Stay Profitable Despite High-Return Rates – The mounting trend in Ecommerce of apparel returns by consumers — many are disingenuous — is like an outbreak of a disease. It scares clothing retailers as bogus returns decimate profit margins. Here are prescriptions for retailers — strategies to save time and money in dealing with returns.
Ecommerce – How to Improve Conversion of Mobile Shoppers – To convert your mobile visitors to customers, you must understand their mindsets. You see, mobile shoppers have different goals and obstacles than desktop users.
“Women are the routers and amplifiers of the social web. And they are the rocket fuel of ecommerce.”
-Aileen Lee
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