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Optimizing Operations to Recession and Inflation-Proof Your E-Commerce Business
A Look into E-Commerce for 2023
E-commerce merchants have had to deal with an onslaught of change recently — an acceleration of online shopping, disruptions due to COVID-19, inflation, and a possible recession — which has significantly impacted how online businesses should be operating to remain viable now.
The aforementioned events have given way to a few trends that online sellers must be ready to adopt. “Because of inflation, I see consumers looking for more bargains when they shop online,” said Ya Wen, SVP of Americas at Payoneer. “Since COVID conditions have improved, more shoppers are shopping … however, people are more cautious about their wallet. I predict that market players will do more and launch more tools and resources to provide better deals for consumers.”
PaymentsJournalOptimizing Operations to Recession and Inflation-Proof Your E-Commerce BusinessPaymentsJournal Optimizing Operations to Recession and Inflation-Proof Your E-Commerce BusinessPaymentsJournaljQuery(document).ready(function ($){var settings_ap25178343 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"25178343",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_408537_29",settings_ap25178343); }catch(err){ console.warn("cannot init player", err); } });
Apart from focusing on budget-friendly offerings, merchants must be ready to optimize current strategies to draw in more customers. For merchants that have significant resources, the trends point to building an omnichannel strategy. Small and medium-sized businesses (SMBs), on the other hand, need to take a careful look at the cost of acquiring customers across different channels. These costs seem to be increasing and, therefore, merchants must rework their e-commerce tactics, focusing on their marketplace power, their traffic, and their economies of scale.
If the rising cost of customer acquisition isn’t enough, merchants must also contend with another possibility of supply chain disruption and take appropriate actions to minimize impact. Merchants can begin by looking at their supplier base and determining where they want to take action to offset this risk. China is a prime supplier for many businesses and recent news only emphasizes this need.
“We already know the latest news from Apple, as they are looking to move manufacturing from China for iPad and iPhone products,” said Wen. “What that means to the e-commerce seller is that they will start thinking about their supplier and their supply chain strategy overall and try to diversify their supply chain, looking more toward Southeast Asia, Latin America, even parts of Europe. This trend will continue and accelerate in 2023 and beyond.”
That said, Wen noted that as the Chinese government continues to ease its COVID-19 restrictions and reopens its borders, Chinese merchants are eager to expand their businesses on a global level.
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By The PaymentsJournal PodcastA Look into E-Commerce for 2023
E-commerce merchants have had to deal with an onslaught of change recently — an acceleration of online shopping, disruptions due to COVID-19, inflation, and a possible recession — which has significantly impacted how online businesses should be operating to remain viable now.
The aforementioned events have given way to a few trends that online sellers must be ready to adopt. “Because of inflation, I see consumers looking for more bargains when they shop online,” said Ya Wen, SVP of Americas at Payoneer. “Since COVID conditions have improved, more shoppers are shopping … however, people are more cautious about their wallet. I predict that market players will do more and launch more tools and resources to provide better deals for consumers.”
PaymentsJournalOptimizing Operations to Recession and Inflation-Proof Your E-Commerce BusinessPaymentsJournal Optimizing Operations to Recession and Inflation-Proof Your E-Commerce BusinessPaymentsJournaljQuery(document).ready(function ($){var settings_ap25178343 = { design_skin: "skin-wave" ,autoplay: "off",disable_volume:"default" ,loop:"off" ,cue: "on" ,embedded: "off" ,preload_method:"metadata" ,design_animateplaypause:"off" ,skinwave_dynamicwaves:"off" ,skinwave_enableSpectrum:"off" ,skinwave_enableReflect:"on",settings_backup_type:"full",playfrom:"default",soundcloud_apikey:"" ,skinwave_comments_enable:"off",settings_php_handler:window.ajaxurl,skinwave_wave_mode:"canvas",pcm_data_try_to_generate: "on","pcm_notice": "off","notice_no_media": "on",design_color_bg: "111111",design_color_highlight: "ef6b13",skinwave_wave_mode_canvas_waves_number: "3",skinwave_wave_mode_canvas_waves_padding: "1",skinwave_wave_mode_canvas_reflection_size: "0.25",skinwave_comments_playerid:"25178343",php_retriever:"https://www.paymentsjournal.com/wp-content/plugins/dzs-zoomsounds/soundcloudretriever.php" }; try{ dzsap_init(".ap_idx_408537_29",settings_ap25178343); }catch(err){ console.warn("cannot init player", err); } });
Apart from focusing on budget-friendly offerings, merchants must be ready to optimize current strategies to draw in more customers. For merchants that have significant resources, the trends point to building an omnichannel strategy. Small and medium-sized businesses (SMBs), on the other hand, need to take a careful look at the cost of acquiring customers across different channels. These costs seem to be increasing and, therefore, merchants must rework their e-commerce tactics, focusing on their marketplace power, their traffic, and their economies of scale.
If the rising cost of customer acquisition isn’t enough, merchants must also contend with another possibility of supply chain disruption and take appropriate actions to minimize impact. Merchants can begin by looking at their supplier base and determining where they want to take action to offset this risk. China is a prime supplier for many businesses and recent news only emphasizes this need.
“We already know the latest news from Apple, as they are looking to move manufacturing from China for iPad and iPhone products,” said Wen. “What that means to the e-commerce seller is that they will start thinking about their supplier and their supply chain strategy overall and try to diversify their supply chain, looking more toward Southeast Asia, Latin America, even parts of Europe. This trend will continue and accelerate in 2023 and beyond.”
That said, Wen noted that as the Chinese government continues to ease its COVID-19 restrictions and reopens its borders, Chinese merchants are eager to expand their businesses on a global level.