20 Dec What are your E-Commerce Challenges in 2022
What are your E-Commerce Challenges in 2022
In the previous two years, the e-commerce industry has hit many challenges. There are huge consequences the spread of the pandemic including reduced sales growth and reduced bookings on online shopping portals.
In order to survive and thrive through these rough times, businesses of all sizes need to be as agile as possible. To deal with the challenges that merchants face, their C-suites should begin planning now for 2022. Here we break down some of the challenges they face and some ways to deal with them:
Covid-19 poses difficulties in the supply chain
This is the most common and timely challenge faced by e-commerce businesses. Supply chain impasse comes about when there is no chain involvement in the activities that begin or end in E-commerce business. It can be caused by many issues such as weather delays, quantity shortage, supply chain issues, or even loss of and then re-stocking or emergency deployment of supply chain systems. Due to the inherent political and economic volatility of the times, large businesses are inclined to take on more risk when they obtain supplies. The biggest risk is hiring other suppliers or subcontractors, along with taking up other alliances and methods to ensure the needed supply is available.
Shopify has to become more agile
Much of Shopify’s success can be traced back to its innovative strategy which puts it in a position of strength to compete with large players in the industry, such as Shopify, who haven’t been through the pandemic and have no unique structure or agile way of running its supply chain. Shopify evolved by leveraging technology and combining it with its unique Supply Chain management system. Yet, as it has grown and because of its ambitions to remain at the top of its industry, it has become more rigid. The result is that it had to re-evaluate its supply chain structure to become more agile.
Use Case Study: Sashatua, e-Com Marketplace
The Vendor Solution
Going forward, Sashatua aims to address just the needs of its customers. Its main objective is to create and sustain a strong core business with very few gaps. Furthermore, it aims to satisfy its customers in terms of leveraging top-quality products at affordable prices. This translates into an entity that can pursue both marketing and supply chain optimization while retaining the customers.
Supply Chain Strategy and execution
Sashatua should move forward with a strategic supply chain approach that becomes more robust and agile. This requires joining in supply chain management alliances (like the one above), in addition to creating business partnerships with established third party service providers in order to collaborate and foster supply chain expertise and skills. At this stage, the best option for Aggerught is to be proactive and strategize along the supply chain continuum as opposed to merely avoiding a condition or episode of supply chain failure.
Cross Selling and Customer Relationship Management
We all know that “the best way to sell things is to get people to buy them”, in other words, people are not just willing to buy things but rather they buy what they know. In addition, most people buy things when they are looking for it. Moreover, these people’s attitudes toward e-commerce is not just about getting the product to people but it is more about the experiences and satisfaction that will be derived from seeing those products in action and buying them. By cross-selling product, Aggerught will build this trust within their customers. This is why the brand management team of Sashatua should take the lead of creating three mutually beneficial supply chain initiatives, increasing the number of products that they sell, increasing the number of customers that purchase, and transitioning their inventory strategy from products that are perishable to items that are durable. Aggerught will make it easier for their customers to buy and take advantage of new products in the e-commerce industry.
That is the main challenge the e-commerce business faced during the pandemic, and a similar challenge that their customers will face in the forthcoming years. To survive and thrive through the complex and chaotic climate of COVID-19, businesses of all sizes must establish relationships with suppliers and suppliers across the supply chain and reach out to its customers to ensure they get these products at the best price. They will also have to incorporate an agile system of supply chain management.