Delivery Issues in E-Commerce: What Retailers Should Consider Now
For Amazon sellers in Germany, much has changed. The Corona pandemic, in particular, has had a massive impact on retail and has demanded a lot from companies. The resulting delivery issues continue to pose challenges for sellers. Additionally, geopolitical factors such as the war in Ukraine have also led to supply shortages and continue to do so. But how can sellers respond to these developments and position themselves in such a way that customer satisfaction does not suffer?
Supply shortages and inflation hit e-commerce hard
Especially the delivery of new goods for inventory is increasingly causing problems for sellers. There is no end to the supply shortages in sight this year. At the same time, the freight capacities of ships are exhausted. Many cargo ships remain at major trading ports in Asia due to the pandemic. As a result, there are often significantly fewer transport options available on ships than before the pandemic. This greatly delays the delivery of goods. Additionally, the war in Ukraine is causing numerous supply shortages for certain products.
Although pandemic-related supply shortages have decreased, they continue to have a noticeable impact on retail. Delivery times in retail are still about 30 days longer than before the Corona crisis. To prevent empty shelves, sellers are increasingly relying on larger orders. However, the increased order volume further reduces the freight capacity on ships. This creates a vicious cycle for both offline and online retail, as well as for the economy. However, there is a small silver lining: during the Christmas season last year, supply shortages eased somewhat – although likely only temporarily. This is indicated by the current IFO survey on the delivery situation in retail.
And it’s not just the logistical challenges that contribute to the delivery problems. Additionally, high inflation complicates the situation for sellers. The reason: transportation costs have risen sharply due to limited capacities and high energy prices, putting pressure on sellers. Furthermore, rising purchase prices for various goods, such as consumer electronics or in the automotive industry, add to the challenge. On one hand, sellers must pay the increased costs to continue offering products. On the other hand, they face the challenge of compensating for the increased prices without losing too many customers due to excessively high final prices.
However, sellers still have the opportunity to position themselves in the current situation so that they can continue to offer their customers a wide range of products. The key to this is proper preparation.
Delivery Issues? Here’s How Retailers Can Avoid Them
First and foremost: Delivery issues are not solely dependent on a single factor, as the current situation shows. However, Amazon sellers can take certain precautions to counteract delivery problems.
Timely planning protects against shortages
For sellers, early planning of their inventory is essential to continue offering products to customers in the event of delivery delays. The earlier they reorder goods, the more time they typically have until the products must absolutely arrive in stock. This makes it easier to cushion any potential shortages or delays. Additionally, early ordering has another advantage: in the event of significant delivery delays, sellers can quickly and flexibly respond by searching for new suppliers. In the case of delivery failures, they can also rely on the existing stock.
Caution is advised when it comes to seasonal goods. Sellers should be more reserved in ordering these items during delivery problems, as otherwise, these products may remain in stock outside of the actual season and unnecessarily take up storage space. In general, it is important for sellers to prioritize their selection of goods – especially regarding bestsellers. This way, they can avoid shortages in deliveries. However, sellers should refrain from threatening suppliers with penalties for delivery delays to a certain extent, as this could jeopardize the collaboration in case of doubt.
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Transparency remains an important topic for retailers.
For sellers, having a good logistics partner by their side is essential. Communication between them plays a significant role. The keyword: transparency. Especially during peak times, the exchange between retail and logistics providers must function smoothly. On promotional days like Black Friday, logistics companies can quickly reach their limits. To prevent overloads from occurring, there should be constant contact between sellers in e-commerce and logistics. The same applies to consumers. To maintain trust with their customers, sellers should communicate delivery issues in a timely manner.
Consumers will appreciate the honesty towards them and will be prepared for any potential delivery delays. At this point, a well-structured customer service can also help address issues early and offer solutions if necessary.
Regular data evaluation – the foundation for businesses
A relevant topic for retailers is also the supply chain. Retailers should pay special attention to it. Early data analysis regarding their own supply chains helps prevent complications in deliveries. If discrepancies do occur, quick access to data can help respond swiftly to changes. For sellers, software systems that transmit supply chain data in real-time are useful. It is important that these systems are integrated for a smooth operation at all interfaces. This way, sellers can easily monitor goods in and out and find alternatives for delivery more quickly in case of emergencies.
Conclusion: Keep Everything in View
Even though the situation regarding supply shortages is gradually easing, sellers should still remain vigilant. Good planning and preparation are crucial here. The integration of software systems also facilitates data collection for sellers and provides the opportunity to identify difficulties in a timely manner.
Additionally, a certain level of flexibility is necessary in e-commerce – whether in the form of alternative transport routes or products. Furthermore, communication between suppliers and sellers remains one of the most important factors. If this communication is transparent and smooth, nothing stands in the way of a good collaboration between retail and logistics despite delivery issues.
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