If nothing else, bad actors perpetrating ecommerce transaction fraud are clever opportunists, and a crisis like the ongoing coronavirus outbreak is proving a perfect opportunity for them to prey upon unsuspecting sellers and consumers, experts agree. The rise of contactless deliveries and working from home are among the entry points.
The impacts of the coronavirus spread are being felt everywhere across retail and ecommerce, with first stores and now ecommerce operations shut down to comply with government orders, and warehouse workers and drivers testing positive, forcing facilities to close so they can be scrubbed and restarted.
While most of retail is in the doldrums due to coronavirus, grocers are seeing explosive growth, and e-grocery has been accelerating rapidly due to shutdowns. Scott DeGraeve, COO and co-founder of Locai Solutions, and Doug Baker, VP, industry relations at FMI, discuss what they’re seeing across the sector, and how it will change.
The coronavirus outbreak is continuing to wreak havoc on retail, with the impact going beyond store shutdowns to online business being shuttered. Companies that closed their ecommerce operations in recent days include fashion brands Reformation, Marysia and The Frankie Shop, and retailers TJ Maxx, Marshalls and HomeGoods.
Grocers may be ringing up major sales from the crush of store and online panic buying due to the growing coronavirus threat, but the market will be painful after the situation abates as demand falls and supplies are overstocked, a Barclays analyst said in a research note.
Amazon has temporarily suspended fulfillment of non-essential items through FBA through April 5, due to high coronavirus-related demand. Meanwhile, retail and DTC brands are closing their doors, while UPS assures customers their deliveries are safe, and major e-grocery delivery app downloads are setting records daily.
Ulta Beauty saw ecommerce sales increase 20% to 30% during fiscal 2019 ending Feb. 1, 2020, aided by a store pickup rollout chain-wide, while also taking steps in store to address the growing coronavirus threat. Ulta also reduced hours of operation, is temporary closing some stores and discontinuing hair services in stores.
Competing with Amazon, addressing privacy issues linked to collection of data by third-party technologies and improving site speed to boost sales are top priorities identified in a new study from ecommerce platform provider Yottaa. The report suggests Prime-style free same-day shipping will become widespread among brands in 2020.
After spending years trying to shed its “coat factory” branding – think Boston Market on the fast casual side – Burlington Stores is shedding something else: ecommerce. The CEO said ecommerce represents just 0.5% of total sales and doesn’t leverage the company’s “treasure hunt” draw for shoppers, giving stores a huge advantage.
Target CEO Brian Cornell piled on superlatives when discussing Q4 and 2019 results, including six consecutive years of 25%+ growth in ecommerce sales. Same-day (order pickup, drive up and Shipt delivery) accounted for more than 80% of Target’s Q4 comparable digital sales growth of 20%, compared to 1.5% overall comp growth.