There are big challenges for business people in Indonesia when WHO announces Covid-19 as a Global Pandemic. During the large-scale social restrictions, the community diverted all activities to be carried out virtually, including shopping for daily needs. In America for example, Nielsen found a 76% correlation between locally confirmed COVID-19 cases and purchases of staple goods in e-commerce.
In Indonesia alone, according to Analytic Data Advertising (ADA) data, there was a drastic increase in online shopping activities in March 2020. The outbreak of the Covid-19 pandemic in Indonesia since early March resulted in the use of online shopping applications for buying and selling daily necessities to secondhand goods an increase of up to 300%. The peak occurred on March 21-22, where online transaction activity in this type of application jumped to more than 400%.
Shops, shopping centers, companies, restaurants, hotels and entertainment venues must simultaneously develop new tactics to stay afloat, starting from reducing outdoor activities and replacing them with interactive content on social media, to closing offline businesses to optimizing sales through the internet. as an effort to maintain business. Grab Indonesia also stated that even though the transportation sector was in decline, food and logistics orders for businesses were spelled out to have increased business.
Online trading transactions generally use the instant messaging facility as a platform for ordering, talking to sellers, payment, monitoring the status of orders to packing and until the package arrives in the hands of the buyer. Buyers can easily monitor their orders, whether in the form of household needs, food, household utensils, to electronic goods. Here, the key to the success of the transaction is the agent. Home delivery service agents need to explore the processes, technology and people to support their operations. Home delivery agents should be experts in this field. Businesses need to execute good home delivery services by expanding their omnichannel retail strategy.
Today, shipping is strategically important for businesses because it has become an integral part of their brand identity. All sales strategies and customer loyalty can be lost with one bad delivery. The challenge for many businesses is that they have many shipping channels and each shipping channel has its own strategies and capabilities. Failure to integrate shipping channels can result in poor customer service ratings and higher costs for businesses.
With omnichannel retailing, shipping is as important as sales and can be a new way to increase sales. For customers, the definition of successful sales always includes those that are delivered successfully at home. Now, with online purchases, a measure of success also needs to be adjusted for businesses.
According to Euromonitor (Cushman & Wakefield, 2013) global non-store internet retail sales, or internet shopping reached 579 billion US dollars in 2012, which is 4% of total global retail sales. This means an online retail expenditure of $ 83 per capita. The global online retail market showed a growth of 14.8% from 2007 to 2012, while total retail growth was only 0.9% over the same period.
Not only basic needs are purchased, Blibli said there are four products targeted by users. The fourth is the category of computers and laptops, electronics, home & living to mobile phones and tablets. Blibli noted the growth in the category of computers & laptops, especially accessories, printers and gaming equipment. That growth has doubled compared to before the pandemic. In fact, cloud kitchen, a new player in the food industry, is currently loved by many people who are interested in starting a food business or adapting their business model to remain relevant during PSBB.
The wide variety of consumer online shopping products is a positive sign for wholesalers in the market shift towards economic transactions that can be done at home. Blibli sees positive growth trends related to changes in consumer behavior in shopping because he is getting used to online. Therefore, Blibli maximizes its services to increase user convenience through free shipping and ease of payment. Some products have also started offering special sales promotions, from free shipping to partnership discounts with e-commerce platforms.
Changes in consumer behavior during the pandemic are not only felt by e-commerce, but also logistics as the frontline of safety and quality of goods ordered up to the hands of customers because the challenges faced revolve around meeting shipments when surging online shopping for important matters along with the crisis logistics when pandemic.
With significant disruption in the supply chain, along with household purchasing power hit by large-scale social restrictions, B2B shipments and sales of selected goods have also been affected. According to the Indonesian Logistics Association, the B2C market seems to benefit from a pandemic. Compared to pre-PSBB days, preliminary data from Paxel’s logistics operator shows that the volume of express shipments of frozen food and other important items has jumped by around 70%.
Omni-channel home delivery service strategy and technology has exploded globally in recent years. There are many examples of leading retailers (and others) that drive revenue, reduce costs, and achieve different customer services. However, most retailers have a lot to do, so the opportunity is clearly still there for those who dare to change the “attitude” of their supply chain.
In fact, Huang claims that the quality of logistics service performance is an important marketing component that helps create customer satisfaction, as a result, an increase in the number of small shipments and frequency variations presents huge challenges for logistics service providers.
And taking into account, data collected from 243 US consumers who expressed their opinions about online shopping:
Delivery is one of the most considered factors that they use as a meter in their evaluation, so it’s important to understand the needs of real users about it and this is what we will do in this work.
Ultimately, it is important for businesses to tactically adapt to changing market demand and look for trends that are relevant to execution. With the omnichannel home delivery service approach, businesses can facilitate the needs of people’s lives that are still in the limitation of physical movement due to unavoidable conditions, thus making customers reluctant to switch to other brands.