Pandemic Keeps Consumers Busy Shopping Online

By: Nadine Samy
@nadinesamy4

As the pandemic enters its second year, many e-commerce companies are reporting an uptick in their sales because consumers are turning to online shopping for their essential and non-essential needs.

In a webinar titled “The Fundamentals of Online Retailing: Learn From the Expert”, Ashraf Youssef, an entrepreneur and e-commerce expert, emphasized the different ways an online store can operate and the importance of online retailing. 

“This is the time for e-commerce. People are now at home and they don’t want to go outside. The sales are higher than ever, and if you look at Amazon’s sales, they have skyrocketed,” Youssef said. 

Amazon’s annual revenue, for example, went from approximately $280 billion dollars in 2019 to $386 billion dollars in 2020 – a 72 percent gain on the previous year.

When businesses transition to this domain, they need to consider how to make their products stand out and compete against other businesses which are expanding their online presence as well.

In order for a product to sell and not fail, businesses have to provide customers with reasonably-priced, high-quality products.

For example, if a person purchases a product online and they like its quality and price, and have positive dealings with their customer service, they will more likely become a repeat customer.

Another way businesses can make their business stand out is through an appealing presence on Instagram or Facebook. 

How products are displayed online – packaging, labelling, presentation – differentiates one product from another.

There can be two different online businesses selling the same product, but what gives one the edge is how well they advertise their goods and service, their commitment to delivery dates, and the quality of products.

Youssef explained that businesses should respond quickly to customers’ questions and their feedback to establish good customer relationships. 

Samar Abdelaal, an adjunct marketing professor at the Department of Journalism and Mass Communication, told The Caravan that she recommends that businesses think of ways to let their customers have a good feeling about what they will purchase before they purchase it. 

“The pandemic gave a springboard for that shopping approach to gain more awareness and adoption. However, my advice is to first study the best route to the market that fits with the industry they are venturing in and the product they are trying to place in the market,” Abdelaal said.

For example, businesses need to give detailed descriptions of all the production aspects and specifications of the product. They also have to post real pictures for their products and commit to what they are posting.

Abdelaal also added that businesses need to make sure that they depend on a solid arm for delivery to commit to delivery dates. 

“In terms of investment, an online store requires less investment compared to a physical store, but if the online store is not well developed and overlooks some key aspects regarding their credibility, this could backfire and their business is opt to fail in its early start,” Abdelaal explained. 

Ismael El Hosseiny, Owner of INO Integrated Services, a cleaning business, told The Caravan that since the pandemic started, his company has focused on online advertising more than ever and the company has seen “amazing” results.

According to Oxford Business Group, Egypt’s e-commerce penetration of total retail sales is 2.5% and the segment is expected to grow at a rate of 33% annually, to approximately $3 billion by 2022.

El Hosseiny elaborated that business owners have to be smart about the timing of their posts, which can be done by studying customer behaviour with the help of marketing specialists. 

For example, content posted at 9am will get different views than if it is posted at 9pm, because at certain times of the day people open social media platforms more frequently.  

“Now, more than 80 percent of our sales come from online platforms,” El Hosseiny said.

“In fact, during the first months of the pandemic, we reached a new record in sales, and I believe that this is because we focused on our online advertising,” said El Hosseiny.