Cheddar breaks down challenges the e-commerce industry will face in 2022, and what solutions are out there to help.

Opening Bell

Predictions for the E-Commerce Industry

Welcome back to Chester's opening bell. The segment is brought to you by ship station the faster easier, more affordable way to manage and ship your online orders. And today we're breaking down some of the major challenges e commerce sellers will face in 2022 an outlook on the e commerce industry this year. One huge challenge that has affected just about every industry freight delays which can result in outdated inventory. Online retailers often have to forward by stock earlier than usual in order to beat those freight delays. But with that forward by comes risk. This can result in wasted inventory if the products become outdated or aren't in as high of demand among consumers. So how can e commerce sellers get ahead, anticipate the product demand and have just the right amount of inventory in the right amount of time, easier said than done Malaysia? Yeah, it's certainly as we've gone from just in time too, just in case inventory right now, the channel and e commerce sellers faces navigating the hot warehouse market just like real estate market for homes. It has certainly been hot. The warehouse market is extremely competitive, warehouses are critical to online retailers of all sizes and some major e commerce companies like amazon have plenty of money on hand to buy up warehouse space that it actually needs. However, this leaves less inventory and higher prices for the smaller e commerce players that are out there. The third challenge for e commerce companies this year, maybe a drop in retail sales during the height of the pandemic and post lockdown. The US saw a rise in the manufacturing purchasing managers index P. M. I. This index is a measure of the current direction of economic trends in manufacturing and is a leading indicator of overall economic activity in the U. S. However, consumers are not expected to be buying at the same rate and volume as last year. Despite this outlook, e commerce sellers will have an opportunity to embrace new technology that can help increase efficiency and insight during these times of supply and demand volatility. So what else can we expect from the e commerce industry in 2022? Well, according to ship station survey of over 600 consumers, These are some of the top predictions. First, more flexible payment options, 67% of respondents are more likely to shop with brands that offer payment flexibility than with ones that do not. Another prediction for this year is the increasing awareness of sustainability as a concern of shipping. Over half of the respondents stated that they would likely the more they would likely be more to buy from a retailer If the brand is sustainable, some ways to make your shipping more sustainable could be to source cost effective packaging and materials, track waste and look to reduce where possible. Lastly setting the bar high for shipping expectations, nine in 10 respondents are most likely to shop with the brand that offers free shipping and nearly 90% said that they want full transparency and shipping costs and timelines. If a brand does not offer free shipping, and to learn more about how you can set up your business for success this year, visit ship station dot com.