Retailers are urging consumers who have specific items in mind to shop early this holiday season, something made evident with numerous Black Friday sales launching the week before Halloween.
Everything from face wash and home goods to toys and craft supplies are on sale at retailers across the nation and online right now. Global supply chain disruptions around the world have increased the cost of manufacturing and shipping, forcing prices to sky rocket for consumers.
The cost of shipping containers alone has soared in the last quarter. A 40-foot container from Shanghai to New York cost $2,000 before the pandemic began. However, now it runs close $16,000 and takes months to get overseas, through a port and to retailers and consumers. This is just one of the many expenses that are being passes along to consumers.
Local stores are facing empty shelves in some areas where products were ordered more than eight months ago and still have not arrived. Challenges could be based on shipping issues, others are based on raw material shortages. Both force prices up for the actual product, in addition to an even more inflated price based on the increased demand and supply shortage.
- Continued Uncertainty
eCommerce cannot seem to catch up lately, with more people than ever shopping online and several areas of the supply chain are either down or operating below capacity, causing backups down the coast and preventing ships from being unloaded and products getting shipped to retailers and consumers.
Nearly half of American companies report they are short on skilled workers, with goods-producing sector hit the hardest. Suppliers and retailers are not able to keep up with demand, making it harder to survive against so many new eCommerce businesses ready to compete on small profit margins and similar products.
Inflammatory holiday season is a new term for many this holiday season, resulting in fewer goods to unwrap this holiday season. Unfortunately, a speedy recovery from this looks slim as backlogs and elevated shipping costs are likely to persist through at least the middle of 2022.
- Increased Customer Expectations
Online shopping allows and encourages consumers to refine their search for more particular products, rather than perusing retail stores looking for interesting items for gifts this holiday season.
Many consumers now demand free returns and free shipping, reliable and quick customer service, accurate and responsive websites, and varieties of payment methods, all while receiving a personalized shopping experience. In a good year, where companies are fully staffed, this is both costly and demanding. This year, those who can rise to meet this premium standard of service will be set apart from others.
Customer retention is also incredibly challenging. Though it is typically valued more so over new prospects, with so much competition in the market it is extremely difficult to guarantee a customer becomes a repeat customer. Suppliers are at the mercy of retailers to provide loyalty perks, discounts like black Friday sales as we approach this holiday, and doorbusters that will help promote products in store or online.
- Increased Cybercrime
With the unprecedented expansion of so many online stores, shoppers are spending more time and more money than ever online, and with this increase comes theft.
Trends show that there’s a huge increase in hacks and breached data from sources that are common – such as mobile phones, loT devices like smart watches and remote working conditions that may not have top of the line security like an office would.
Research also suggests that smaller companies may not have the resources needed to protect data properly, making them vulnerable to data loss. Whether it’s paying vendors or accepting payments directly from customers or retailers, having sound security practices in place is critical for ongoing success.
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