| | DECEMBER 20209CIOReviewout of products and leaving customers to shop elsewhere. In Q2, from April to June, for example, consumers spent $200.72 billion dollars with online US retailers. That number is 44% higher than it was during Q2 of last year; this is evidence that online retailers must anticipate unprecedented sales and quickly expand their distribution centers. This might mean that companies need to adjust their capital budgets and make new sales forecasts to keep up with the growth they could have as the year progresses.Delivery ChallengesWhen purchasing a new product, especially technology-related products that are being used to work from home, many people need their products extremely quickly. Companies are now spending a lot of time and money to develop ways to effectively deliver products without huge wait times. Amazon, for example, has spent billions of dollars developing its own network of delivery drivers so it doesn't have to go through 3rd parties like FedEx, UPS, or USPS. While this won't be the possible option for smaller companies, each e-commerce company must consider whether it's in their best interest to work with Amazon or if they should continue to use their own website for sales and then ship and deliver through a shipping company.Supply Chain ChallengesThe coronavirus did a huge number on international supply chains, and online retailers are forced to examine different ways to fulfill the demand of the market. The tech industry has had particularly high demand due to the shift of many workers from office to home. On the flip side, the tech industry has faced particularly difficult shortages and other problems with their supply chain. To understand these shortages, you must understand just how much the demand grew for certain tech products compared to last year, Q2 saw needs for notebook computers increase by 45%, tablets increase by 37%, monitors increase by 87%, printers increase by 54%, and keyboards and mice increase by 62%. These huge, unanticipated increases in demand were challenged by the fact that mega-factories in China, like Foxconn, were forced to shut down for a period of time. Due to the huge amount of shutdowns in China, some retailers are searching for new places to manufacture their goods, and it would be smart to consider finding various countries that could manufacture goods in the case the one country faces future shutdowns. Going ForwardAs the world continues to evolve through the pandemic, e-commerce businesses should anticipate more and more growth to their sector. Consumers are finding out just how easy and convenient shopping from home is, and it will only continue to get better. Companies need to make sure they have solid supply chains and reliable manufacturers; they should look for multiple manufacturers to import products from in case shutdowns continue in different parts of the world. There is no doubt about it: e-commerce is the way technology shopping will continue into the future. Victor Elmann
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