Economists and business experts around the world have mentioned the inevitable impending global recession in 2023. As more countries enter a recession, global growth will likely slow even further, which means an increase in prices and a decline in people’s buying power. Whether a global recession will hit hard or mild, businesses need to adjust and prepare strategies relevant to the economic landscape. Here are 3 tips for e-commerce to survive and thrive during economic uncertainty.
| Inventory Management |
Business blindspots are spots where your business burns because it is running inefficiently and ineffectively which affects total profit, and one of the common blindspots is inventory. It is safe to say that during hard times, there is no room for a blindspot.
In inventory management, the goal is to ensure there are enough goods or materials to meet the demand without overstocking. Inventory management refers to the process of ordering, storing, using, and selling a company's inventory. It is also necessary to recognize how long it takes for inventory to be sold or used, and How long is the re-ordering cycle.
| Exposure Management |
If the world enters a global recession, where unemployment rates increase, and prices rise, naturally customers are going to be more cautious with their spending, consequently making e-commerce more competitive than it already is. In that situation, it is high time to ensure your business is well-exposed to your target customer. This is because people tend to develop a preference for things merely because they are familiar with them. The phenomenon is called the mere-exposure effect.
| Outsource |
Utilise an outside provider for goods or services that can be outsourced to reduce operational costs over time. With this strategy, you will have more time, space, and resources to explore more opportunities and innovate.
Talk to us for more ideas and strategies here.
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