Why Your E-Commerce Startup Might Be Well-Positioned to Survive COVID-19
Many businesses have faced significant struggles, thanks to the COVID-19 pandemic. Faced with the need to adapt and innovate in a very short time in order to survive, many have been unable to do so quickly enough, and it's cost them business. Unlike a lot of other businesses though, your e-commerce startup just might be uniquely positioned to survive the pandemic.
Adaptation to Remote Work
Working remotely has become more commonplace than ever before. For a lot of businesses, this shift has been a huge adjustment. Remote work comes with many challenges, but for an e-commerce startup operating remotely may come more naturally than to a more established business. As a newer, smaller business it can be easier to integrate remote work into your business structure than it is for a company who already has a history of operating from a centralized office or storefront.
A Bigger Shift to Online Sales
By some metrics, the pandemic has accelerated online sales growth by 4 to 6 years. This is a huge, unprecedented jump in growth. Prior to the COVID-19 pandemic, offering online shopping was a good idea, but not necessarily one that was critical to survival. Now it is, in many cases. As an e-commerce startup, that's exactly what you're designed for. You don't have to make significant adjustments or additions to your business operations to support online sales. In e-commerce, that's just how you operate.
Lower Overhead Costs
Thanks to the online nature of your business, overhead costs are probably relatively low. You'll still have plenty of expenses, but renting property for a storefront and the expenses that come with it doesn't have to be among them. Because an e-commerce startup is more affordable to operate than other business models, managing cash flow so that you're breaking even or turning a profit is easier to do. The lower your costs are, the more room you have to work with before you fail to break even. This improves your chances of surviving the pandemic.
E-commerce startups are in a unique position to do well for themselves during COVID-19. They are better suited to remote work and tend to have lower overhead costs as a result, making them more affordable to operate. They also naturally provide a response to the bigger shift to online sales. Thanks to these things, e-commerce startups may find they actually have the edge when it comes to surviving the pandemic.
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