3 best practices for Shopify merchants to deal with inflation in 2022
The inflation in 2022 is hitting businesses hard!
Inflation induced by the global supply chain crisis is causing a dip in consumer spending.
Not only this, but it is also affecting their shopping behavior by changing what they buy and where they buy.
Recently, Shopify announced that it witnessed weaker than expected results for Q2-2022 owing to slow customer spending.
Summing things up, we can say that inflation is here to stay, and in order to survive, businesses must learn how to deal with the rising inflation.
So, here are some approaches Shopify merchants can adopt to deal with inflation and grow revenue.
You may worry that raising prices might upset your customers, and they might abort shopping. But the fact is, inflation hits everyone right from consumers to suppliers to manufacturers and business owners.
So, acknowledging the prevailing situation and acting accordingly, will deliver fruitful results.
Plus, if your product is good enough and adds value to their lives, customers will buy it anyway. On the other hand, not increasing your prices will cause a dent in your gross margin and profitability.
However, you can justify the price rise by offering well-thought rewards, discounts, and meaningful customer experiences.
Focus on Cash Flow management
To stay strong in inflationary environments, a good cash flow is required. Businesses often collapse during such times because they run out of money.
Hence, Shopify merchants or any eCommerce business must create ancillary financial avenues, and do cash flow forecasting to sustain the financial crunch.
Leverage automation to boost productivity
As per the latest report by Salesforce, businesses are automating their critical processes to boost productivity and efficiency.
Ecommerce businesses can also turn into automation to automate their repetitive and time-consuming tasks. That way, they can enable the sales team to focus on selling and service teams to focus on delivering impactful customer services.
Moreover, you can automate the synchronization of records and data with CRM, ERP, or other systems by using connector tools.
For instance, You can automate your work order management across Shopify and Salesforce with a tool called Shopify Made Easy and get real-time sync without any code or human help.
Thus, by deploying automation, you can save time, reduce operations costs, and boost productivity to drive more sales and mitigate inflation effects.