In January this year when Coronavirus was still seen as an issue for China, I wrote a prediction/advisory piece about how best to prepare your business for the impact of Coronavirus.
Needless to say, while I stand by my advice, I couldn’t have predicted the spread that Coronavirus would have had across the globe.
One thing which has also seen an increase across the board is eCommerce sales as a whole.
Back in January, I showed how there had been an 87,400% increase in face masks amongst the Amazon bestseller ranks, and while back then I suggested that sellers of health, wellness and medical products would do well. It appears that lockdown has driven people online for everything, not just essential supplies.
The Coronavirus eCommerce Spike
The impact of lockdown on the United States has meant with many physical stores remaining closed except for those essential supermarket goods, that consumers have been driven online to fulfill their other needs and wants.
Even those buyers that prefer the in-person experience have been forced online. Along with those that have been battling boredom and the monotony of lockdown have indulged in extra purchases in order to lighten the mood of the current global crisis.
As of Monday May 11th, some reports have found that there has been an 87% increase in eCommerce revenues when compared to normal averages.
This is obviously a significant increase on what is normal for Q1 and Q2 date ranges. While this may seem like a great result for eCommerce sellers, there has to remain an element of concern about what the future holds.
The Impact on Q3 and Q4
While this sudden and largely unexpected spike might be great news for eCommerce businesses right now in these times of uncertainty, it would be unwise to expect the usual sales of Q3 and Q4 this year.
While you may hope that the usual spikes for Black Friday and Christmas will occur as usual, it would be prudent to prepare for the eventuality that they don’t.
In the election year there is obvious pressure for President Trump to try and get the economy rolling again but elections can bring about a lot of uncertainty in the markets and across the population.
This coupled with record levels of unemployment and uncertainty around any further stimulus measures means that the second half of this year could mean many households feeling the financial crunch.
Play It Smart
The message here is that we are living in unprecedented times, and while we all hope for the usual Q3 and Q4 spike in sales, this year it would be foolish to rely on that for your business.
There are too many variables and unknowns such as a second wave of coronavirus causing more disruption to businesses and the economy.
If you are one of the businesses that often make the most of your revenue and profit in the later months of the year, and are currently enjoying a spike right now. Don’t get complacent and be prepared that this could be your annual spike just a few months early.
If you like to talk about this story
Please head over to our Facebook Group for Small Business Sellers and interact with other small business owners.