Despite the current economic situation, characterized by inflation and uncertainty, electronic commerce has experienced since the beginning of the year a quite positive activity.
Many companies in the sector were able to advance orders to prepare for the key Black Friday and Christmas campaigns and thus protect their margins. However, the good start to the year is behind us and the sector is beginning to be increasingly affected by the inflation persistence.
«The main consequence of this impact materializes in the margins, which are narrowed by having to face higher costs. This reduction in margins will translate into an increase in final prices and a reduction in the discounts offered on key days for the sector, such as Single’s Day or Black Friday”, ensures Marc Brychresponsible for Wayflyer for Spain.
Likewise, on October 1, the banking code of good practices that was established with the outbreak of the coronavirus pandemic was terminated. This date will mark the beginning of the tightening of credit and bank financing, so e-commerce sellers who do not have alternative resources will be limited when it comes to operating.
“These limitations will especially translate into a lack of liquidity, the importance of which will increase as the advertising bids of the main platforms do so. This is a fundamental factor when determining the success of a campaign because the web traffic necessary to achieve the necessary returns depends to a great extent on it”, adds Marc Brychs.
Credit restriction and higher financing costs
The scenario, which is already complex, will become even more complicated as credit is tightened and financing costs rise, so it is very important that e-commerce sellers know all the alternatives available to access to liquidity without putting pressure on the currency in their balance sheets.
These options will allow you take advantage of growth opportunitieswhich are still valid, and demonstrate their ability to overcome complex environments, as they did during the pandemic or with the problems in global supply chains that have occurred since then.
In fact, companies that knew how to take advantage of liquidity solutions in time were able to advance orders for the key season for the sector and thus protect their margins from inflation.
