It seems like almost every day the sterling pound reaches a new historical low. But what does this mean for ecommerce merchants and big retailers?
Most retailers should still have plenty of stock, so they are able to maintain competitive prices and run their businesses as usual for some time. There have been recent reports which reveal that 66% of consumers now shop cross-border through various marketplaces. Some retailers might even see a surge in sales as their prices have now become more affordable to international customers.
With crucial sales peaks such as Black Friday, Cyber Monday and Christmas approaching fast this situation will change as retailers need to increase their stock to ensure they can satisfy customer demands.
Imported products will become more expensive, so retailers will face a difficult question: to raise or not to raise prices? If they do, they might lose customers to international competitors who are able to offer lower prices. If they don’t, they risk a significant decrease in revenue.
What can you do next?
At this stage, a smart, innovative reporting tool like Volo Vision is crucial for shaping a strong pricing strategy and an agile business strategy.
With Volo Vision retailers can clearly see stock levels, fast moving products and how long it will take to replenish stock. You’ll also be able to see profit margins for each individual SKU (Stock Keeping Unit). With this knowledge, merchants can quickly adjust their pricing policy without severely affecting the bottom line. There are also various repricing tools available to help retailers reduce prices and promote competitive discounts when there is high demand and increase the price when there are fewer competitors. In this way, merchants gain flexibility and maintain profitability.
If you have questions on how to protect your bottom line against the tumbling pound, please get in touch today. We’ll happily advise you on the best strategies for overcoming these challenges.