As the pandemic has reshaped our ways of living, more consumers have been compelled to do more of their shopping online. This led to exponential growth for companies with eCommerce platforms, which has made it hard for many companies to keep up with demand. Even Amazon famously struggled to adjust its distribution chain for several weeks. Not every company has Amazon’s resources to revamp an entire logistics system in weeks, but there are eCommerce financing solutions that can help companies put upgrades in place.
Pandemic Growth Trends for eCommerce Businesses
Consumers diverting shopping activity from physical to virtual stores was inevitable. TechCrunch reports that this had been trending sharply upward for the past half-decade. Still, the 2020 pandemic created the most significant shift. By the second quarter, retail stores had experienced a 75% decline in buying activity. During that same period, online sales climbed by almost 32%. This translated into consumers spending roughly $211.5 billion online.
Since then, states have reopened across America, but many people continue to do their shopping online. As a result, many physical stores are ramping up their online retail business capabilities.
Challenges Faced by eCommerce Companies
Most business owners would argue that having too many customers and orders is an excellent problem to have. In the short term, this makes sense. In the long-term, it can have a profound effect on brand loyalty. Amazon experienced this firsthand. When it was unable to keep its virtual shelves stocked and meet delivery schedules. The Washington Post named Walmart and Target as two rivals that attracted customers during their initial troubles.
What the Future Holds for eCommerce Growth Demand
The pandemic and post-pandemic future of eCommerce is expected to continue on its current trend. Many people who remained resistant to online shopping, especially among the older generations, changed course out of necessity. Meanwhile, online shopping generations are dominating the marketplace. TechCrunch believes eCommerce will see a 20% growth rate by year-end.
One study that focused their research on eCommerce in Denmark found substantial growth in the following areas:
- Electronic media, such as movies, music, and books
- Food items, such as groceries, takeout, and drinks
- Building supplies
- Hobby and office supplies
- Electronics and tech gadgets
- Personal care items
Transforming the supply chain and distribution chain requires large capital investments. Consequently, access to adequate eCommerce financing solutions is one of the most significant impediments to growth and increasing their capacity to keep up with order surges.
How To Plan for Order Surges
Planning for order surges is difficult because the very nature of waves is that they are unpredictable. What people may purchase in a panic can also be mind-blogging. To counter this, companies should create supply chains and distribution chains that are flexible and agile. This makes it easy to scale operations up and down as the need arises.
Business managers should also improve projections based on economic conditions or even announcements in the news. Determining business warehouse capacity, delivery capabilities, and purchase order capacity can also make a big difference. Over the next few months, software algorithms will better improve to account for and automate this.
How To Improve Efficiency
The good news is that there is no shortage of tech available to improve efficiency for any company. Companies can also rely on key performance indicators, such as shopping cart abandonment and average delivery time.
These are some additional ways to improve efficiency and agility:
- Build more flexible relationships with suppliers.
- Find access to capital through alternative lenders like LQD Business Finance.
- Use inventory management software.
- Use asset management and fleet tracking software.
- Invest in your existing workforce to reduce the risk of high turnover.
How To Access Capital To Meet eCommerce Growth Demand
Often growing a company leads to surpassing the company’s capital. Consider pursuing more creative ways to fund development. Some have scored big with pre-orders from customers, while others have tried to attract more venture capital.
Point of sale credit and purchase order financing can be more desirable to traditional business loans. Purchase order financing is one alternative funding option to help you reinforce your cash flow. PO Financing enables you to take on larger orders, preserve the working capital you have, and provide business owners with flexibility.
Apply for Purchase Order Financing at LQD Business Finance
As eCommerce demand continues to experience an unprecedented surge, businesses need all the help they can get to maintain their footing in the marketplace while generating a healthy cash flow. With LQD Business Finance’s alternative lending solutions, you can increase access to the capital you need to keep your business afloat and help it thrive.
We offer competitive rates and fast processing times for purchase order financing and other eCommerce financing solutions. Apply now to find out just how much your business can qualify for.