How prepared is your business for an unexpected disruption?
Can your business manage to stay afloat if 2020 happens again?
No right. But what if it happens?
We’ll share tips from experts in the industry to help you stay profitable in the face of disruptions.
These tips will help you stay adaptable and navigate the challenges that come your way. With our strategies, you’ll set your business up for long-term success.
So, let’s dive into the world of e-commerce and prepare you for whatever lies ahead.
What do unexpected events in the e-commerce industry mean?
We all know that running an e-commerce business is no easy feat. It is a rollercoaster ride with ups and downs.
But what happens when unexpected events occur?
These events can be:
- Natural disasters
- Economic downturns
- Supply chain disruptions
- Cybersecurity threats
With these disruptions, your products and customer satisfaction will take a huge hit.
As an e-commerce business owner, you need to be aware of potential disruptions and have a plan. Whether it’s having alternative suppliers or backup plans for shipping, preparation is key.
Now, to the part you’ve been waiting for, the expert tips on preparing against these disruptions.
Keep reading.
5 expert tips for coping with disruptions in your e-commerce business
With unpredictable events, you are at risk of facing significant disruptions. To help you, we compiled a list of expert tips that will help you fight any disruption.
1. Proactive planning
Elaine Turner, CEO of Elaine Turner, says, “Expect disruptions and adjust your plans. The key to success is to be proactive, not reactive.”
You can learn from Elaine’s advice and prepare your business for disruptions.
How, you ask? By staying proactive and developing contingency plans.
Start by identifying potential risks and vulnerabilities. They could be in your supply chain, operations, or industry trends.
According to Elaine, you need to stay ahead of the curve and develop scenarios for any and all potential disruptions.
Elaine suggests creating a comprehensive contingency plan. A plan with alternative suppliers, backup systems for critical processes, and communication protocols.
By doing so, you make sure that your business continues to operate, even during a disruption.
Elaine reiterates that you must design scenarios for the unexpected to happen.
By following this advice, you can ensure that your business is well-prepared. When you are proactive, you and your business can thrive, even in uncertain times.
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2. Use data analytics to forecast demand
“To cope with disruptions, it’s important to know the demand patterns for your products.” So says Harshil Goel, founder and CEO of Dyndrite.
Harishil adds that the only way to achieve this is through data analytics.
You can use a data analytics tool to collect and analyse customer data.
The customer data you need to analyse are:
- Purchase history
- Browsing behaviour
- Feedback
Harshil says you can identify trends to forecast product demand with customer data.
This data lets you plan and adjust your inventory and supply chain. Harishil also thinks it can help prevent stockouts and reduce waste.
Harshil emphasises the need to stay agile and adapt to changing market conditions.
Data analytics is a gift that you need to use right. It can help forecast demand and avoid disruptions in your e-commerce business.
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3. Use SMS to communicate with customers
Neil Patel, founder of Neil Patel Digital, explains, “E-commerce businesses need to communicate effectively with their customers.”
But how do you do this?
According to Neil, SMS is a powerful tool for staying connected with customers even during disruptions.
A simple SMS notification could do wonders for your business and growth.
Imagine you need to ship something to a customer, but it’s stuck somewhere.
What do you do?
Send an email? Call them?
You can send your customers updates and notifications via SMS. This helps the customer understand that there is a delay in shipping.
With SMS, you can also inform them about other issues, such as:
- Changes in shipping
- Order processing
- Inventory availability
That’s not all. Neil also recommends sending personalised offers and discounts via SMS to your customers.
The customer who was angry about your service will be happy and use the discount to buy from you again.
SMS is a great tool that helps boost customer loyalty and retention.
Neil emphasises the importance of being proactive and transparent in customer communication.
When you keep your customers informed, you turn disruptions into opportunities.
4. Diversify your supply chain
Michael Lampel, Managing Director of Michael Lampel Consulting, recommends diversification of the supply chain.
So, how do you achieve this?
Michael suggests working with many suppliers and diversifying your sourcing strategy. Your sourcing strategy should include different regions and countries.
By doing this, you avoid taking a hit during disruptions.
Michael also emphasises the importance of building solid relationships. A working relationship and communication with your suppliers mean a great supply chain.
So, how can you find other alternative suppliers?
Here is a simple list of how you can do it:
- Research online directories and databases of suppliers, such as Alibaba or ThomasNet.
- Attend industry trade shows and conferences to meet with potential suppliers in person.
- Check out social media platforms and forums.
- Reach out to professional networks to get recommendations on suppliers.
- Use Google to research potential suppliers, such as their reviews and certifications.
- Consider working with a third-party sourcing company to help identify potential suppliers.
Also, Michael recommends you analyse your supply chain and identify potential risks. “Being proactive in risk identification can help you avoid disruptions.”
Once you do all these, you can maintain a stable flow of products, even during disruptions.
5. Prioritise cybersecurity
Dave Hatter, a consultant at Intrust IT, advises e-commerce businesses to focus on cybersecurity. “With advanced cybersecurity, you can prevent disruptions caused by cyber threats.”
Dave explains, “E-commerce businesses are a prime target for cybercriminals. Proactive measures can help you protect your business and customers.”
Dave recommends implementing strong cybersecurity measures.
These include:
- Multi-factor authentication (MFA).
- Encryption.
- Regular security audits.
Dave also emphasises training your employees on cybersecurity best practices. “By prioritising cybersecurity, you can prevent attacks and save your business,” Dave says.
You need to review and update your cybersecurity measures regularly. “The cyber threat landscape is evolving, and you must adapt to new risks.”
By taking a proactive approach, you can protect yourself and your customers.
Prepare your e-commerce business for anything with SMSCountry
So there you have some expert tips to prepare your e-commerce business for any event. Remember to focus on communication and to have a backup plan.
Speaking of communication, are you still looking for an SMS platform?
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Don’t wait until it’s too late. Schedule a free demo today or sign up for free to see how SMSCountry can help take your business to the next level!
