Many countries have started to impose measures in targeted regions to contain the spread of the coronavirus and prepare for a possible second wave. The implementation, once again, of stringent lock down measures, will inevitably influence consumer spending behavior globally. And in turn will significantly impact cross-border exports, logistics, and inventory management etc.
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During the pandemic, the lack of human resources, disruption in logistics and other related operations have resulted in sellers being unable to meet consumer expectations on speed of delivery. Customer satisfaction and tolerance have also dipped to below pre-pandemic levels, resulting in a rapid rise in chargebacks, returns and refunds.
The development of the coronavirus pandemic has become a key factor for sellers when developing their business strategies and plans going forward. If the epidemic spins out of control, causing difficulty with last-mile delivery and negatively impact sales. It could potentially invalidate the preparation work of the sellers for the peak shopping season and may even end up invalidating any preparatory work that the seller has done for the peak shopping season. However, every crisis comes with potential opportunities. While the pandemic has drastically reduced offline orders, the corresponding upsurge in online purchases has vastly improved the seller’s business revenues. There is a difference between this year’s peak shopping season and the previous year. Sellers hoping for an uptick in business revenues must not ignore external environments and keep a close eye on the state of the global pandemic when planning and administering the supply chain, logistics, inventory, refunds and other uncontrollable factors.
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To the seller, the greatest challenge is to maximize profits during the peak shopping season while managing the risks associated with the uncertainties created by the pandemic. Operational efficiency and service are critical success factors in the implementation of cross-border trading. Due to the pandemic’s transformational impact on logistics operations, the resultant unstable supply chain and, the rapid rise in chargebacks has forced the seller into the predicament of maintaining the balance between a dynamically evolving social, political, and economic environment and accelerated digitization. Some sellers have pointed out that, for the remainder of this year, the biggest potential risk for them is last-mile fulfillment where, due to delayed delivery, lost goods, insufficient stocks, or other related issues would generate an increase in returns, refunds, and chargebacks. This, in turn, would exacerbate the issues related to stock obsolescence in their warehouses.
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The global pandemic has drastically impacted international air travel. According to the freight forwarding operators, the second wave of coronavirus infections overseas has resulted in many flight cancellations, adversely affecting global capacity and potentially increasing airfreight costs in the near future. Offshore warehouses, however, have seen increased activity. Because of the uncertainty of logistics routes, increased operational costs and stringent lockdown measures imposed by the affected countries, the stockpile held in these offshore warehouses has helped to alleviate the fulfillment challenges faced by the sellers, bucking the trend and generating revenue growth. To cater to the upcoming peak shopping season, more offshore warehouses would be sufficiently stocked to minimize disruptions and stabilize logistics effectiveness, thereby decreasing chargebacks. Another factor to be considered is that, compared to previous years, the consumer is more demanding in regard to service quality so, efficiency in customer responsiveness is crucial to enhancing the consumer’s shopping experience.
The global pandemic has introduced a host of uncertainties that could potentially impede the expected growth in sales revenue during the peak season. To mitigate these risks and maximize growth, sellers should be fully prepared, ensuring that there are business continuity strategies in place to cater to unexpected disruptions in-stock availability and accessibility, a robust supply chain, logistics efficiency, promotions, and payment options. Oceanpayment offers 7×24 customer support, enabling the seller to ensure that they have the capability and capacity to meet the challenges of the peak season, transforming their businesses with improved operational effectiveness and driving enhanced customer experience.
For a better understanding of Oceanpayment’s one-stop cross-border payment solutions and services, please contact us at +852-27717310.
Wang Chao [2020, September 23] US coronavirus cases exceed 200,000. Many countries across Europe adopt more stringent regional control measures. The UK looking at a national lockdown for 6 months. Source: https://vip.jianshiapp.com/articles/3605779
Shenzhen Yunlu Supply Chain Technology Co. Ltd. [2020, August 5] With the impending upsurge of e-commerce during peak shopping season towards the end of the year, sellers must plan wisely for efficient fulfillment and delivery. Source: http://www.yl-scm.com/New-detail-cid-1-id-84.html