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Tips for online retailers after lockdown
By David Jinks, ParcelHero
any online stores and services have found new customers of all
ages during the lockdown. With most High Street stores planning to reopen on 15 June, it is time for eCommerce stores to work to retain customer loyalty while ensuring there is a better synergy between physical and online stores when lockdown ends:
1 A Direct response: D2C Direct to consumer (D2C) rapidly became a popular, responsive, and low-cost option for manufacturers during the lockdown. From Abel & Cole, Simply Cook and Riverford, to
Made.com, Bloom & Wild and Birchbox, D2C businesses continue to sell everything
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from food to flowers, furniture to fashion.
During lockdown, many big retail names struggled to get their products to consumers. With department stores closed and even third-party online channels such as Fulfilment By Amazon (FBA) blocking the distribution of non-essential products, many brands and manufacturers were left stranded. By contrast, some direct-selling retailers, including recipe box seller Gousto, reached such a peak during the COVID-19 crisis they temporarily stopped taking on new customers.
It’s no coincidence that many D2C companies, including Abel & Cole’s subscription food boxes, Birchbox’s make-up boxes and Harry’s razors, thrived during lockdown. One of their chief hallmarks is that they make full use of the direct relationship with their customers. E-commerce is infamous for its lack of customer loyalty, but D2C brands are a notable exception to this rule; many customers of D2C brands form a strong bond with the product and act almost as brand ambassadors. Such customers are also willing to pay more for customised products and convenient delivery. D2C has been a new experience for sellers and
manufacturers, but one that is likely to continue to be profitable in the long term.
2 Make most of Government schemes Smaller retailers don’t need to force their way out of lockdown on their own. Most of the UK’s 5.9 million SME businesses and retailers that are likely to survive the lockdown are those that quickly get to grips with the very latest Government assistance packages. Key schemes that are evolving daily include the Coronavirus Job Retention Scheme. From August, employers currently using the scheme will have more flexibility to bring their furloughed employees back to work part-time while still receiving support from the scheme. This could be really useful for retailers slowly bringing all their staff back to work, whether packing items for shipping or returning to a store in the case of multichannel retailers. The updated scheme will run for three months from August to the end of October and employers will be asked to pay a percentage towards the salaries of their furloughed staff.
The Government will also help SMEs seeking to defer any VAT payment due by 30 June 2020 by extending the deadline to
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