Supply chain disruptions may persist, cross-border sellers need to be prepared

As we enter the second quarter of 2022, cross-border e-commerce sellers continue to be affected by supply chain disruptions caused by the epidemic, war, and inflation. According to Web Retailer's interviews with some top supply chain experts, this state of supply chain uncertainty will be a "new normal."

For retailers and cross-border sellers, the pressure of supply chain disruptions has led to a series of problems, such as reduced profits, increased transportation and warehousing costs, more buyers dissatisfied with delayed delivery times, and increased difficulties in shipping to overseas warehouses.

When it comes to the initial reason why cross-border e-commerce is in trouble in the supply chain, it is still the global outbreak of COVID-19. With the blockade of various countries, the outbreak of the epidemic has caused a domino effect:

COVID-19 lockdown > Increased e-commerce sales > Shortage of containers > Shipment delays > Congested ports > Shortage of dock workers > Shortage of truck drivers > Shortage of distribution warehouse space > Increased distribution and storage costs > Shortage of delivery drivers > Delayed deliveries > Unsatisfied customers > Reduced revenues for sellers and retailers > Increased prices by sellers, retailers and suppliers > Inflation.

At present, although the pace of the fall of dominoes related to the epidemic has slowed down, it is clear that some of them will not be reset to their normal positions, while others are in an "irregular" state of change.

However, just as the impact of the pandemic began to abate globally, the outbreak of the Russian-Ukrainian conflict set the second set of dominoes in motion. This time, rising fuel costs, economic sanctions against Russia, transportation resources for humanitarian or military needs, currency fluctuations and changes, etc., continue to weigh on the moving parts of the supply chain.

In addition, the impending port strike on the West Coast of the United States, potential U.S. legislation to harm e-commerce, and the uncertain outcome of the ongoing war have all had an impact on sales for cross-border sellers.

For cross-border sellers and retailers, what can they do to maintain their e-commerce business under such circumstances?

1. Place your order early.

2. To offset the adverse effects of longer delivery times, increase order volume.

3. Reduce reliance on just-in-time delivery.

4. Find alternative suppliers and sources of goods.

5. Consider hiring a supply chain expert to handle management of supply chain and logistics issues.

Judging from the current situation, it may take a year or more for the supply chain to stabilize, or it may never stabilize. But consumers' demand for online shopping and home delivery will continue to increase. The best thing sellers can do is to be prepared and flexible.

Cross-border sellers

Supply Chain

The new normal