Ecommerce is not just a side business anymore. The market today is fast paced, and like running any other business it takes time and commitment for it to be profitable. There are many tips and tricks to ensuring that your online company is making profit. Unfortunately, many ecommerce owners do not consider a crisis plan.

What is a Crisis in Ecommerce?

Like running any kind of business, there are risks involved. Currently there is a major supply chain concern throughout North America and much of the world. Manufactures are not able to get the raw equipment to create the products to send to the distributors. The distributors are not getting the products to send to the vendors. Then there are not as many products to sell online.

Often the manufacturers and the buyers are located around the world. When there is a financial crisis in a country it can affect sales worldwide.

What can appear to be a good upswing for online companies can also be a crisis; during the pandemic there was an increase in the online platforms. However, this caused millions of new sellers to compete with as well as a decrease in supplies as more people were purchasing the limited amount of goods.

How to Crisis-Proof Your Ecommerce Store

Create a disaster recovery plan. It is impossible to predict all crises, but when you have a good plan it can be adapted to ensure that you remain in operation. The plan should include:

• Identify the current and future risks your business faces
• Outline the potential consequences of each
• Craft a step-by-step process for resolving each issue

Diversity is key. There are a few ways to diversify:

• The first is to sell in other markets. When working with Amazon you can apply to sell in foreign countries. You will need to ensure that you know the rules and any legalities before venturing in this market, but it can be profitable.

• Use multi channels or omni channels. Multi-channel ecommerce is using more than one standalone platform such as Amazon and Walmart. Omni-channel ecommerce is a customer centric approach to online sales. The sale from one platform can lead to another without a break, and the customers experience is seamless.

Work with local suppliers. Having local and multiple suppliers can help ensure that there are products to be sold. When there is a connection with the supplier, this relationship can help when there is a crisis such as a shortage of supplies. Having multiple suppliers can also help mitigate concerns when there is an issue with one supplier. COVID was a prime example of this; some manufacturers shut down due to COVID protocols while others remained operational.

You should have at least three suppliers:

• Current supplier
• Back up supplier
• Potential supplier

Crises happen and often in an instant. Like any emergency or crisis, being prepared will help you get through troubled times. Check us out for more helpful tips about running your ecommerce business.