How online sellers react to rising prices
60% of online sellers reorganize their sourcing routes – 39% raise their own prices
The world is currently seeing record inflation rates and souring resource prices caused, among other things, by Russia’s war on Ukraine and the resulting volatile situation on global food and raw materials markets. Inflation in Germany, for example, was 7.9% in the month of May, with consumer prices for certain goods like energy increasing by as much as 38% compared to May 2021. The situation in the U.S. is similar, where inflation rates have reached the highest levels since the early 1980s, according to Forbes. Consumers feel the price increase with every walk to the store: Consumer prices for groceries and everyday goods have partly reached record levels. But what about eCommerce? How do online sellers cope with increasing energy, supplier, and resource prices? EcommerceBytes has conducted a survey among online sellers to find out:
The survey results show that online sellers have found several different strategies as to how to deal with rising prices for gas and goods, and most of them have reacted in one way or another: Only 11% of respondents state that the took no action whatsoever. Most online sellers in fact reacted with a streamlining of processes. 60% of the interviewed online sellers refined their sourcing routes or made fewer trips to source their inventory, and another 29% reduced the number of trips for the shipment of orders (multiple answers were possible). Another big measure was the passing on of risen resource prices. 39% of online sellers reacted to increasing prices on fuels and inventory by raising the prices of their own items on sale. Another 31% raised their shipping and handling fees. Giving up was generally no alternative for online sellers: Only 3% of respondents stated that they stopped selling goods online. The interviewed online sellers were also asked to leave comments on what exactly they were doing differently now. Many commented that they reduced the area from which they source their products, others stated that they now relied on online sourcing. Still others stated that they changed their product range to lighter or different products that cost less to ship. In their comments on the passing on of the price increase, many make clear that they find it natural that an increase in resource prices is reflected in an increase in consumer prices.
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