What does it matter if you are out of stock or can’t ship goods? Apple, Haidilao, IKEA and other companies are closing stores on a large scale

The novel coronavirus epidemic is still raging. As of 24:00 on February 3, there were 20,438 confirmed cases of novel coronavirus pneumonia and 425 deaths .

Faced with the severe epidemic situation, Hong Kong announced the closure of four major ports !

Yesterday, Carrie Lam announced that from 00:00 on February 4 , the four ports of Luohu, Lok Ma Chau, Huanggang and Hong Kong-Macao Ferry Terminal will be closed . In addition to the previously closed high-speed rail West Kowloon Station arriving trains, Hung Hom through trains, China Ferry Terminal, Tuen Mun Ferry Terminal, Man Kam To Port, and Sha Tau Kok Port. From today, Hong Kong has only three ports left : Shenzhen Bay Port, Hong Kong-Zhuhai-Macao Bridge Hong Kong Port, and Hong Kong International Airport.

Many cross-border sellers and freight forwarders are very worried about the impact on goods passing through the port due to the port closure. In this regard, industry professionals pointed out that the impact on goods passing through the port is not significant . Because there is no clear news that there will be restrictions or prohibitions on inbound goods , it is likely that only the passenger inspection port will be closed, and the cargo port will not be closed. Besides, there are still three ports available.

With the outbreak of the epidemic, various countries have suspended some flights to China to varying degrees. What is more serious is that it was previously rumored online that the United States has designated China as an epidemic area, and goods arriving in the United States need to provide special documents or they will face destruction, and the United States will cancel all flights between China and the United States, even cargo planes.

However, after confirmation from multiple logistics companies, it was confirmed that this was fake news . Although cargo planes have not been grounded, the biggest impact of the epidemic is currently on cross-border retail export sellers . Many sellers on Amazon and AliExpress have reported that they have received refunds and returns from some retail buyers due to the epidemic.

For sellers on the platform, the biggest concern under the epidemic trend is the cross-border operation issues, such as supplier supply and international logistics delays. Because the epidemic continues, suppliers have difficulty starting work and logistics start late, which will inevitably lead to problems in our operations. The factors that have the greatest impact on listing sales on the Amazon platform are bad reviews and out of stock, which ultimately led to a decline in overall page sales in 2020.

In short, the impact of this epidemic on our cross-border e-commerce sellers can be summarized as follows:

1. Out of stock

2. Unable to ship goods

1. In response to the delayed start of work, a hierarchical, coordinated, and efficient duty plan is formulated for employees, such as inspections of the safety of basic store links.

2. Check the existing inventory and estimate the inventory consumption time.

3. Communicating with suppliers in advance to arrange stocking is of utmost importance.

For example, the inventory planned before the New Year can be consumed until the end of February . The factory starts production in mid-February, and the production time is 20 days. If an order has been placed before the New Year and the factory has sufficient materials, the earliest delivery time may be mid-March, which means there will be a one-month shortage period compared to the plan before the New Year. If the factory workers do not return to work in time and the material preparation cycle is long, the delivery time will be even longer.

4. Adjust sales strategies and reduce promotion costs.

It is necessary to adjust sales expectations in a timely manner according to the replenishment situation and the risk of out-of-stock, such as reducing the advertising budget appropriately, reducing the amount of coupons, and if the product is about to run out of stock, the sales price can be appropriately increased in stages. In short, the out-of-stock time should be controlled within one week.

5. Actively communicate and explain to customers

Even if we take a step back, the epidemic will not spread and be transmitted through international logistics. At the same time, we need to take videos and photos for customers to prove the disinfection and cleaning of our products. I believe that most buyers with real needs will accept it. For those who really cannot accept the explanation and must refund and return the goods, the subsequent situation will tend to be stable due to the control of the epidemic.

In fact, due to the impact of the epidemic, there are a lot of companies that have closed stores, not just out of stock or unable to ship goods. Among them, the catering industry is the most affected .

Tea brands such as Luckin Coffee and Heytea, and fast food brands such as McDonald's and KFC have temporarily closed their stores in Wuhan. Only Pizza Hut has retained a few restaurants to deliver meals to hospitals.

On the other hand, the situation of catering groups such as Jiu Mao Jiu and Waipojia is not optimistic. Haidilao and Jingge will close all stores during the Spring Festival, while Jiu Mao Jiu, Waipojia and Taier Pickled Fish will be closed until February 9 .

In addition, Xibei Youmiancun clearly stated that it could not even last for three months.

According to statistics, due to the impact of this epidemic, the catering industry's retail sales this year will suffer a loss of 500 billion yuan in just 7 days.

In addition to the catering industry, international brands such as Levi's and IKEA have also closed most or even all of their stores in China. According to incomplete statistics, as of now, more than 20 companies have closed stores, including Apple, Samsung, Starbucks , etc. The list of companies closing stores is as follows:

Faced with the sluggish market, cities such as Guangzhou, Suzhou, Beijing and Shanghai have also introduced corresponding policies, focusing on supporting enterprises and helping them overcome difficulties.

The outbreak of the epidemic has indeed caused many companies to suffer considerable losses, but the sun always comes after the storm. As long as we unite as one and defeat the virus, the future of cross-border e-commerce will surely be even brighter!