There’s no way to sugarcoat this: We live in a pretty volatile world.
And this volatility isn’t easing up any time soon.
The key is preparation, and data. Sooo much data.
Perhaps a disruption in your supply chain wasn’t a risk that was top of mind for you. Then BOOM — the pandemic hit everyone simultaneously, and what was once a theoretical issue for many businesses, was suddenly very real. So real in fact, that 94% of companies reported a supply chain disruption in 2020.
After surveying 3,000 risk management experts, the 2021 Allianz Risk Barometer ranked Business Interruption as the #1 business risk leaders must watch. Pandemic Outbreaks ranked second, overtaking Cyber Incidents, which fell 39% year over year. (Although Cyber Incidents could make a comeback in 2022 — stay tuned.)
Source: Visual Capitalist
For eCommerce in particular, supply chain disruptions during the pandemic have created new consumer expectations for shipping and returns that will have a lasting impact post-pandemic:
- 93% of consumers want the ability to see and select shipping rates and speed during the checkout process.
- 91% of consumers now expect full transparency into both shipping times and costs.
- 90% expect extended return windows due to potential delays in shipping.
- 78% expect retailers to have figured out a way to offer the same shipping speeds as pre-COVID.
- 61% expect free shipping indefinitely.
By the end of 2020, it was estimated that 2 billion people would have made an online purchase. These trends continue to look promising for eCommerce businesses, as small business spending is trending up, up, and away:
- 76% of consumers say that buying online offers a better experience now than it did one year ago.
- 73% purchased through a retailer’s website.
- 59% say they prefer to shop online instead of in stores.
Look, we get it. Disruptions aren't new.
Business Interruption has been the top risk seven times in the last decade, and it isn't going away, which means...
… Preparing a business strategy that takes advantage of the growth of eCommerce, while mitigating the risk of supply chain disruption, is critical for long-term success!
Businesses in the eCom space should be leveraging data and analytics to better anticipate pending disruptions, and to develop their response.