Kite blog
The impact of Covid-19 on the world of ecommerce.
As one of the UK’s leading Packaging companies, we explore the effect Covid-19 has had on ecommerce, advising on
important considerations for any company now taking their business online.
Since the announcement by the World Health Organisation (WHO)
that Covid-19 was officially classified as a global pandemic, many things we
took for granted changed without warning, and in many ways, without choice.
Implementation of the lockdown was an unprecedented test
that ‘UK PLC’ has not faced the like of in post-war times, with retailers
scrambling to ensure sustainability of their businesses. A pattern of
‘adaptability’ that seemed to emerge quickly was triggered by non-essential bricks
and mortar companies being forced to close until further notice. In fact, even in the
current post-lockdown world there remains a question around how much confidence
has returned and how much we are now going back into stores. The ‘new normal’
for retailing may be less about wholesale change and more about diversification
and evolution.
With the population effectively consigned to staying
indoors, people were not only forced to re-evaluate their shopping habits, many
of us took to the internet to spend money on improving our homes, gardens,
health, and hobbies. A consequential effect of this was certain related industry
sectors experiencing booming sales, moreover increased demand was happening
almost entirely through online channels. Driven by the need to adapt and
survive in a lockdown world, this lead to companies having to move fast and
either establish an online presence or push all their efforts towards
exploiting an existing ecommerce presence, which may previously have only
played a small part in their overall business strategy.
According to analysts at Edge Retail Insight, the surge in
online shopping caused by Covid-19 is expected to grow 19% in 2020, with many
consumers stating they will continue to use brands they found online during
Covid-19 and many saying they now feel more confident shopping online and so
intend to continue.
With an apparent surge in ‘online’ activity for many businesses,
some of whom have little or no experience with ecommerce, it is vital that to
understand the key areas critical to the success of an online business compared
to a bricks and mortar one.
As one of the UK’s leading packaging companies there are
some key areas Kite discusses below, areas that we believe need to be
carefully considered when it comes to choosing your packaging.
Safety
Warehouse based pick, pack and despatch operations are often
the hub of an ecommerce business. It is vital that products are stored and
handled in the correct way, whether they are secured in containers or stretchwrapped, adherence to simple best practice is key to safety. Following on from
this, safety on the road is also a vital area, if companies are despatching increased
volumes of pallets into the freight networks, it is their responsibility to ensure
the pallets are safe and do not lead to road accidents.
Space
Other challenges for fast growing online companies is lack
of space, whether it be the office, the carpark, or the warehouse. When you
have an ecommerce company, an organised and fully optimised warehouse is key.
This can be supported by purchasing packaging products that arrive flat packed
and/or are space saving. Additionally, the correct design for pick, pack and despatch areas is crucial, for example using dedicated packing benches with attached
roll holders and shelving. Looking to compact mobile equipment that can be used
around the warehouse can create an extremely efficient and organised space.
Brand reputation
It is becoming more common to see people unboxing purchases
they have received online and shaming companies for using excessive amounts of
packaging. How to approach the application of packaging can really make or
break a brands reputation. Looking at companies such as Kite can help, we have
a focus on environmental ranges of products and are a packaging company
that wants people to use less packaging. We also provide tailored bespoke
packaging solutions, supporting a company in their efforts to stand out from
the rest with an extremely cost-effective way to get products to market.
For more information on us, please click here.