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Beating the recession in 2023

A number of analysts anticipate a recession by the end of 2023 since the economic outlook is indicating a persistent downturn. Uncertainty in the economy is being caused by a confluence of factors including rising prices owing to inflation, the housing crisis, stock and cryptocurrency collapse, war, and residual effects from COVID-19. This implies that as a business owner, it’s time to review your financial records and develop a recession-proof plan for your eCommerce site.

This may sound daunting. However, it is usually in the best interest of every eCommerce business owner to examine their brand and revenue on a yearly basis before January comes around. Even if we don’t hit a recession next year in the Netherlands and in other countries, it is still smart to recession-proof your business before the coming year.

In this how-to guide, we’ll break down how you can prepare your eCommerce business for the upcoming recession, and how you can utilize e-tailize to beat the recession in 2023.

How to Beat the Recession in 2023 as an eCommerce Seller

Take a Deep Look at Your Supply Chain

A flexible and effective supply chain is a terrific method to guarantee that costs are kept low, even in the happiest of economic climates. The need for supply chain optimization increases during a recession since rising shipping and fuel expenses may divert funds from other areas of your company.

To guarantee you’re obtaining the optimal costs from your suppliers, first, optimize your supply chain. This will assist you in maintaining low expenses and large margins. It’s also a smart idea to incorporate promotions in your marketing plan during a recession because consumers are frequently searching for discounts. Don’t be scared to test out novel pricing strategies or product lines. An economic downturn is an ideal opportunity to experiment and find what works best for your company. With the help of our data analytics platform, e-tailize makes it simple to evaluate the success of new pricing and marketing initiatives.

Focus on Refreshing Your Brand to Make It Stronger

It’s crucial to maintain good customer relations during a recession if you want to keep your firm operating. A strong brand serves as the cornerstone upon which everything else is constructed. Businesses that are successful at engaging with consumers perform well throughout recessions. Even in difficult circumstances, customers continue to purchase those products.

The majority of businesses that have been able to communicate properly have remained profitable even during a recession. They are able to connect with customers because they have a distinct identity. However, you must still demonstrate to your clients why your goods are superior to those of your rivals.

Continue producing high-quality goods, and leverage brand storytelling to persuade people to make purchases from you. e-tailize can help you with this step by providing excellent data analytics, so you can measure the efficacy of your rebranding or brand refreshing.

Prepare Any Cash Reserves, Just In Case

Having available cash gives you the freedom and agility to spend or invest when necessary. However, not every company has a sizable war fund. Usually, this is when financial support might be useful.

A funding roadblock does not just exist at the beginning of an eCommerce company strategy. Once your store is operational, you’ll need steady cash flow to place inventory orders, carry out efficient marketing campaigns, streamline your supply chain, and develop new goods. This demand could increase during a recession. Costs related to inventory and fulfilment, for instance, generally increase during a recession. These price increases can be easily absorbed if you have additional money.

The simplest approach to protect a corporation against this is by setting aside money to accumulate capital. Consider reinvesting profits in the company rather than using them to buy non-essentials. Selling equipment or other assets that might not be currently essential to operations is another option. You can always buy them again whenever circumstances improve. However, liquidate while you can.

Last but not least, if outside finance from investors or funding companies is available, take it into consideration as long as the terms are clear.

While e-tailize can’t help much in terms of cash reserves, our product management platform can help you visualize exactly how much stock and potential sales you have in place at any given time.

Markets are always evolving. Market trends and prospects have been significantly impacted by COVID-19, and these effects are projected to last through 2023 and into the recession.

One of the best things one can do as an eCommerce business owner is to keep their thumb on the pulse of trends in different marketplaces. Trends like omnichannel strategies, niche marketplace, social media shopping, and artificial intelligence are all trends in eCommerce that could impact the success of your own business.

Take a look at our list of marketplace trends worth keeping an eye out for in 2023.

Invest in Predictive Analytics

Without a question, big data has transformed the field of digital intelligence. The beauty of big data is that it gives us access to a wealth of information that supports data-driven decision-making, especially in booming digital businesses like e-commerce. By putting the requirements of the consumer first and assisting marketplaces in staying competitive, predictive analytics and big data have completely revolutionized e-commerce. This has changed the game for e-commerce behemoths like Amazon. Similarly, big data and predictive analytics may significantly contribute to the financial success of internet enterprises.

E-commerce platforms must draw clients from a variety of demographic groups and geographical regions in a market that is designed for size. However, typical data processing methods make it difficult, if not impossible, to gather and evaluate data on every single consumer. That’s where big data plays a part. In a second, big data enables e-commerce platforms to access enormous datasets that provide information about the behaviors of consumers to create predictive models. These in turn may be examined utilizing cutting-edge technology and machine learning skills.

This could be a big deal for eCommerce brands, especially in the beginning stages of a recession in 2023. Read more about the importance of predictive analytics and big data for eCommerce brands via our blog.

Sell on Marketplaces and Improve Your Seller Rating

With e-tailize, selling on third-party marketplaces is not only simple to get started with but also essential in the current worldwide market. You’ve probably heard headlines, figures, and articles claiming that selling on third-party marketplaces generates significant revenue for both sellers and the marketplace companies themselves.

It’s pretty clear that Amazon will be one of the primary platforms to survive the 2023 recession with over $162 billion in net sales in 2022 alone. It’s definitely a marketplace to look out for. Follow our guide to set up your account and start selling your products on Amazon as soon as possible. Setting up an Amazon Seller account isn’t enough, though. You’ll need to start working on your seller rating as soon as possible in order to have any visibility in 2023. Your seller review is the main thing your customers and potential customers will look at when deciding whether or not to buy from your platform. In order to effectively boost your seller rating and create happy customers that, in turn, create more happy customers, follow our guide on seven things you can do to improve your Amazon seller rating quickly.

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We Can Help You Beat the 2023 Recession

e-tailize can help you beat the 2023 recession as an eCommerce seller in the Netherlands and beyond simply by making it easier to expand to more marketplaces with your brand’s products and optimize your marketing strategy to sell more of your products. Click here for more information. 

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