Retailers Face Supply Challenges
Newly compiled industry data shows U.S. retailers slashed orders for merchandise by nine per cent at the height of the pandemic. In fact, consumer spending actually increased by six per cent year on year during second quarter due to a booming eCommerce sector, says Kenny Tsang, managing director of PingPong Payments. However, as a result of this, demand is now outstripping supply. This means stock shortages will only get worse as the retail season kicks off in October with Amazon Prime Day and this spells disaster for the sector. Merchants have been left scrambling for goods in time for the crucial fall because they planned too conservatively at the height of the spring lockdown when orders are usually placed for the holiday season. He thinks the sector should be focusing on a global eCommerce strategy and tapping into the growing cross-border market in order to survive. Doing so means major inventory shortages can be alleviated by sourcing internationally as fast-growing markets abroad can also offer the best opportunities for boosting revenues and profits amidst a U.S. recession. The ultimate cross-border business can expose their products to an audience of a half a billion consumers around the world.