Bottles of champagne and men’s underwear are being overlooked, as diaper rash ointment, lipstick and long skirts fly off the shelves. No, this isn’t part of a frenzied dream, but rather, some indicators of an impending recession.
Economists are divided as to whether we experienced a mini-recession last year when GDP dropped for two consecutive quarters, if we’re in one now, or if one is just around the corner. Whichever way you lean on the debate, there’s consensus that consumers’ disposable income has taken a serious hit.
When consumers face financial constraints, retailers naturally tend to struggle. Thankfully, the Quivers Omnichannel Toolkit offers a solution by providing retailers with an additional sales channel, increased consumer foot traffic, a strengthened relationship with brands, and a means to safeguard your business from the effects of a recession.
How Quivers Protects Retailers From Recession
After factoring in inflation, US retail sales are down 2% annually. While shoppers are spending more of their budget on food and essentials, discretionary purchases have fallen at Target, Home Depot and other major chains. Considering even retail giants are grappling with the impact of budget-conscious consumers, specialty brands and retailers might be particularly concerned.
If this all sounds a bit doom and gloom to you, don’t worry — we have some positive news. During times of uncertainty, Quivers plays a crucial role in safeguarding retailers and providing them with a much-needed boost in revenue. By enabling retailers to efficiently fulfill orders placed on a brand's website, Quivers grants them a hassle-free sales channel and a reliable safety net.
Don't just take our word for it; hear it from one of our satisfied retail customers. Lindsey Simmons Curtis, CFO at Simmons Sporting Goods, shares her experience:
“We have increased wholesale orders and now carry a wider range of products than we usually would, because we know we’ll be able to fulfill brand orders through Quivers.”
Simmons Curtis continues by highlighting the economy. “This year is slower than the last few for everyone, but Quivers has helped us fill in a lot of the gaps!”
While 88% of consumers prefer to order directly from a brand when given the option, Simmons has managed to capture a significant share of these orders. According to Simmons Curtis, this is thanks to their utilization of Ship-from-Store — a component of Quivers' Distributed Order Fulfillment. Leveraging Simmons' prime location, they can offer swift last-mile delivery and a conveniently situated retail space for local customers to see products in the flesh and/or collect orders.
Retailers aren’t the only ones to benefit from Quivers’ recession-busting toolkit. Brands that leverage Quivers frequently:
- Mitigate stockouts by expanding product availability
- Experience a boost in their wholesale business by supporting retailers and providing sell-through insights
- Increase online sales by catering to customers seeking fast and convenient delivery options globally
- Gain data insights, including sell-through data, that give them a broader picture of what’s selling where
An Adaptable Solution for an Unpredictable Economy
With over a decade in the game, this isn’t our first rodeo. We’ve seen first-hand how quickly the economy can fluctuate and wreak havoc on business, which is why we’ve fine-tuned our Omnichannel Toolkit into the perfect counter to whatever comes your way.
The Supply Chain Crisis
The outbreak of the pandemic in 2020 sparked a range of supply chain issues, and the ongoing conflict in Ukraine further aggravated widespread disruption.
Even during times when supply chains are at their weakest, Quivers serves as a valuable ally for brands and retailers, enabling them to strengthen their connections, expand their stock availability and safeguard inventory.
Want to learn more? Check out our article about protecting your business from supply chain disruption.
Changing Consumer Habits
With inflation rising and 60% of Americans living paycheck to paycheck, many have turned to Buy Now, Pay Later (BNPL) services to be able to afford certain items.
Recognizing that 61% of BNPL users prefer to use a service directly offered on a website rather than going through a third party, Quivers responded by introducing the average-order-value boosting Quivers Pay Later. To learn more about Quivers Pay Later, read our blog post.
The way that consumers pay isn’t the only thing to have changed during the pandemic. Over the last few years, shoppers have frequently switched from largely in-store buying to exclusively ecommerce and everything in between.
To reflect these constantly shifting consumer patterns, Quivers offers the best in omnichannel fulfillment, including in-demand options like BOPIS (Buy Online, Pick Up In-Store), Curbside Pickup and White Glove Delivery.
Want to learn more? Find out why BOPIS is so important here or learn about the uncomfortable situations consumers can avoid by using White Glove Delivery here.
The Cart Abandonment Epidemic
Did you know that online consumers abandon around 70% of shopping carts without completing the checkout process, and that this percentage tends to increase during a recession?
What you may not be aware of is that Quivers offers a host of tools designed to combat cart abandonment. Among these tools is Cart Abandonment Reminders, which can reduce cart abandonment rates by as much as 30%. Learn more about it here, or read our nautical-themed guide to reducing abandoned carts here.
In recent years ambassadors have become an integral part of the commerce ecosystem, and preliminary data suggests ambassador programs may help to increase conversion rates by as much as 40%. Quivers Ambassador Relationship Management (ARM) empowers you to launch and track ambassador programs that significantly increase conversion rates and reduce cart abandonment rates. To learn more about ARM, check out our fun blog post.
The Overstocking Crisis
The wild ride of the pandemic prompted many retailers to adopt a more aggressive approach to ordering in an effort to stay ahead of supply chain issues. But as disruptions gradually subsided and consumer sales dropped, these retailers found themselves thoroughly overstocked.
Quivers has provided a lifeline for many of these retailers, offering a simple and profitable solution for managing excess stock. Learn more in our guide to coming back from overstocking errors and our blog post on seasonal overstocking.
We don’t like to toot our own horn, but we have a great track record when it comes to fighting off economic challenges. No matter what the economy throws at you, Quivers is the flexible solution that helps you maximize opportunities. Our Omnichannel Toolkit has become an indispensable tool for retailers aiming to optimize inventory turnover and achieve revenue targets amidst the backdrop of a recession.
Begin recession-proofing your business today by requesting a free demo with Quivers.
