How Retailers Respond To E-Commerce Supply Chain Disruptions: Lessons From A Free Returns Study

The Impact of E-Commerce Supply Chain Disruptions on Retailers: Lessons from a Free Returns Study

In today’s fast-paced e-commerce landscape, supply chain disruptions can have far-reaching consequences for retailers. As online shopping continues to grow in popularity, the ability of retailers to respond quickly and effectively to disruptions is becoming increasingly critical. In this article, we will explore the impact of e-commerce supply chain disruptions on retailers and examine the lessons that can be learned from a free returns study.

The Growing Complexity of E-Commerce Supply Chains

E-commerce supply chains are becoming increasingly complex as retailers seek to offer faster and more flexible shipping options to their customers. However, this increased complexity also creates new risks and challenges for retailers. According to a report by Aplicai, the average e-commerce company processes over 50,000 orders per day, which can create significant strain on supply chains.

The Cost of Supply Chain Disruptions

Supply chain disruptions can have a significant impact on retailers’ bottom lines. A study by Gartner found that the average cost of a supply chain disruption is around $1.5 million per day. This can be devastating for small and medium-sized retailers, which often have limited resources to absorb such costs.

How Retailers Respond to Supply Chain Disruptions

So, how do retailers respond to supply chain disruptions? A free returns study conducted by Returnly found that the majority of retailers (62%) reported experiencing supply chain disruptions in the past year. The study also found that the most common responses to these disruptions were:

• Temporarily closing online stores or suspending shipping (44%)
• Offering store credit or vouchers to affected customers (26%)
• Providing a refund or exchange for items that could not be delivered (21%)

The Importance of Quantitative Survey Techniques

To understand how retailers respond to supply chain disruptions, it is essential to use quantitative survey techniques. A study by McKinsey found that the use of quantitative survey techniques can provide valuable insights into retailers’ responses to supply chain disruptions.

Best Practices for Responding to Supply Chain Disruptions

So, what are some best practices for responding to supply chain disruptions? According to Supply Chain Dive, retailers should:

• Communicate clearly and transparently with customers about delays or disruptions
• Offer alternatives, such as store credit or vouchers
• Use data analytics to identify trends and patterns in supply chain disruptions

The Role of Technology in Responding to Supply Chain Disruptions

Technology can play a critical role in responding to supply chain disruptions. A study by Retail Week found that retailers who use technology, such as artificial intelligence and machine learning, are better able to respond quickly and effectively to supply chain disruptions.

Conclusion

In conclusion, e-commerce supply chain disruptions can have a significant impact on retailers. However, by using quantitative survey techniques and adopting best practices, such as communication, offering alternatives, and using data analytics, retailers can minimize the impact of these disruptions. As the e-commerce landscape continues to evolve, it is essential for retailers to be prepared to respond quickly and effectively to supply chain disruptions.

References

• Aplicai
• Gartner
• Returnly
• McKinsey
• Supply Chain Dive
• Retail Week

Photo by Yan Krukau on Pexels

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