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Effects of Omicron on Cross-Border eCommerce Market

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2020 would always be known as a year the world stood still. The emergence of the coronavirus brought about a rise in eCommerce. While other sectors experienced a downturn during COVID, the eCommerce industry saw a dramatic increase.

 

The government-enforced lock-downs resulted in online purchases being a top shopping option. Consumer purchasing, especially with cross-border eCommerce, increased drastically with consumers buying wants over needs. The purchasing behavior of all essential products increased with people buying with caution. The first effect of COVID-19 on worldwide transport can be traced to panic buying throughout the pandemic until it ultimately leveled out as consumers realized the gravity of the virus. With the world still trying to keep its balance after COVID-19, the emergence of the Omicron variant stands to tilt that balance.

 

So, what effects will Omicron have on the cross-border eCommerce market?

 

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Cross-border Hindrances Due to Omicron

When the coronavirus first hit the world, it affected all industries putting a stop to business plans. Many fear that the issues tackled with COVID-19 will re-emerge with the presence of the Omicron variant, which is more infectious than its predecessor. For the cross-border eCommerce market to be proactive, below are expected hindrances due to Omicron:

 

1. Border Restriction

As the number of Omicron-related cases surges globally, rather than wait to see how the virus will go, the cross-border eCommerce market is being proactive in enforcing border restrictions from the beginning. If trade borders are closed to foreigners, it becomes impossible for the cross-border eCommerce market entities to across borders. Since COVID-19, China has been stringent in its border controls andcontinued theprocess with Omicron. Other nations like Japan and Israel have equally followed suit by enforcing travel and border restrictions.

 

2. Transmission and Mutation Threat, and Further Lock-downs

A secular spread by the World Health Organization (WHO) shows that Omicron has a higher transmissibility rate than previous variants, which could potentially overwhelm many health systems. Omicron also has the potential to cause over thirty million mutations in coronavirus. Its high transmissibility and mutation rate, along with its resistance to the COVID-19 vaccine, will more than likely lead to stringent lock-downs to curb its spread.

 

3. Disruption of the Global Supply Chain

The beauty of the cross-border eCommerce market is its ability for products to be purchased and delivered all across the world. Border restrictions by essential countries to the cross-border eCommerce logistics can further cause a mess to the system.

 

The global supply chain is still recovering from the effect of COVID19 with a shortage of workers and, Omicron can halt that recovery by raising questions of a safe work environment. The supply chain is battling against a labor shortage, raw material shortage, and an ever-increasing demand by consumers. Omicron puts global logistics in a quagmire since logistics workers are bound to stay at home for their safety even though lock-downs have shown that consumer buying will increase.


Increased Purchases Even with Omicron

One deductible fact from COVID-19 and the Delta variant is that consumer purchasing behavior is not simply affected by the virus and, Omicron would not be any different. Holiday shopping has risen by a whopping 8.5% even with the threat of Omicron and existing supply issues.

 

It is almost as though online shopping is the bit of normalcy society plans on holding onto despite everything happening. November and December saw fast growth in holiday shopping for the first time in 17 years. Even with product shortages, consumers adapt by searching for other options in the cross-border eCommerce market if their top choice is unavailable. The price increase, supply shortage, and threat of Omicron will not reduce consumer purchasing behavior.


Preparation for Omicron Onslaught

With Omicron altering the status quo, cross-border logistics service providers must find creative ways to navigate these uncertain times, and they can do so by adopting the followings:

 

● More Contactless Deliveries

Contactless deliveries follow government-enforced social distancing rules and eliminate any physical interaction during deliveries. Parcels are delivered to the customer’s doorstep by a delivery agent. An increase in contactless deliveries will reduce the spread of the virus.

 

● Creative Technology Advancements

When the coronavirus first appeared, government agencies and phone companies teamed up with WHO to develop technology that pinpoints high-risk areas. If the cross-border eCommerce market invests in such technology, they can track the spread of the virus in their delivery locations and act accordingly. Tracking the virus will ultimately provide safety to delivery workers and customers concerned.

 

● Better Customer Support

While the situation with Omicron evolves, the cross-border eCommerce market can get ahead of the situation by open communication channels. Continuous communication with consumers will reassure them that although Omicron looms and supply challenges exist, you are concerned about consumer satisfaction. Provide customers with support through order tracking, visibility, and complete transparency on their order status.


Conclusion

The coronavirus took the world for a spin because we had no idea what to expect  but, with Omicron, we can be more prepared and prevent its spread. The success of every eCommerce business lies with a reliable logistics partner. Irrespective of your preparations as an eCommerce business to combat Omicron, if your logistics partner does not share the same views, it can all be for naught. YunExpress is a professional cross-border eCommerce logistics provider primed to tackle Omicron.

 

YunExpress has over 50 global partners, all with the same vision of limiting the spread of Omicron while carrying out quality deliveries. Equipped with contactless deliveries, a strong workforce, and technological advancements, YunExpress is set to handle your parcels. 


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