Consumers Returning to Pre-Pandemic Shopping Habits
CRC recently conducted a report showing 63% of consumers have largely returned to their pre-pandemic shopping habits, with 35% reporting a complete return as of June 2021. Those who have yet to fully return plan to do so before the back-to-school season commences. Here are some helpful insights to keep in mind:
40% of consumers reported that their savings were unaffected by the pandemic, while 34% indicate saving more than they did before COVID-19 (saving on average $6,400 or more). That said, 69% of the consumers who did save more plan to allocate a portion of those funds for emergency purposes.
Nearly 1 in 4 workers are expecting a raise in wages this year as inflation continues, with almost 1 in 5 expecting a substantial increase of more than 10% to their current income. Reports suggest that 46% of consumers are anticipating being better off in the coming years when compared to their current financial status.
Inventory Shortages and High Prices
CRC’s report shows that 50% of consumers are holding off on purchases because of inventory shortages and high price increases across all categories. While the majority are affected by the prices, the continuing inventory issues in groceries and consumables are also proving to discourage shoppers.
Amazon’s Supplier Pack Hierarchy (SPH)
Amazon’s new Supplier Pack Hierarchy program (SPH) was developed with the goal of building a pack-aware supply chain that can handle the packaging of any type of product with zero risks of defects. As a result, Amazon would use the vendor’s UPC merchant code and would no longer have multiple ASINS per item.
Only 22% of brands have actively begun working towards launching the new program, with many of them are still learning how the program works, how it will impact their business and/or operations, and what the internal preparation process should be like. While Amazon is aiming to have vendors onboarded by 2022, it will require ‘all hands on deck from your business to make it happen, from customer service to supply chain, data, and more.
The main benefits of this new program are a reduction of operational challenges and receiving issues, catalog issues, and new item set-up issues. The SPH program will also offer more selection of pack sizes without the need to create new UPCs, making it convenient and efficient for users. However, the program runs the risk of creating significant price and profitability challenges, due to Amazon’s ability to list and sell any configuration they choose.
To learn more about the program, contact us.
Why B2B Companies Should Ask Customers For Reviews
The lines between Business-to-Business (B2B) and Business-to-Consumer (B2C) have been blurring for some time now, especially when selling online. As the industry evolves, the B2B industry is increasingly looking and acting like B2C business.
Getting customer feedback has been an advantage that more B2C businesses have taken advantage of for years. Should B2B companies do the same? Not only do customers base much of their buying decisions off reviews, but the feedback you get from the end-user is invaluable. The data you collect could determine tweaks to your manufacturing processes, modifications to future product lines, and adjustments to your customer service practices, to name a few.
Not having the bandwidth to connect with end-users is a common barrier our clients face. If you’d like to start collecting insights from your customers, we can help.