There is a lot of debate lately about whether we will experience, or are already experiencing, a recession lately. The economic indicators seem to point in a different direction every month. Whether we are on the verge of a recession, are heading towards a “soft-landing,” or even if your business seems unaffected, it is important to recession-proof your ecommerce business and be prepared to withstand any potential effects of a recession.

Here are 6 strategies ecommerce retailers can put in place to prepare for an economic downturn.

Diversify Your Product Offerings

The market tends to affect different segments of the population in different ways. If you only cater to one segment, you could suffer severe consequences. Relying on just one or two products can leave you vulnerable to market fluctuations. Review your product offerings and offer a wide range of products to appeal to a larger customer base and reduce the impact of any one product or market downturn. By expanding your product line, especially along a variety of price points, you can cater to different customer needs and reduce the impact of a decline in sales for any single product.

For example, if you sell only clothing, consider adding accessories or home goods to your product lineup. This can help you reach new customers and provide existing customers with additional products to purchase.

Focus On Cost-cutting Measures

In order to make your business recession-proof. It is important to not only develop a plan to withstand economic downturns but also to incorporate cost-cutting measures that will help your company save money and operate more efficiently.

Look for ways to reduce overhead costs, such as negotiating better deals with suppliers or finding more affordable shipping options. By streamlining your operations to be more efficient you can more easily handle a sudden decrease in revenue brought about by a recession.

When addressing cost-cutting measures, make sure that you are not sacrificing the quality of your products or your customer service. This could not only affect your brand after the recession, but could also create an environment that will drive customers away.

Increase Online Visibility

Invest in search engine optimization (SEO), pay per click (PPC), and social media marketing to drive more traffic to your website and increase sales. During a recession, it’s more important than ever to ensure that your ecommerce business is visible to potential customers. In fact, economic downturns can lead consumers to increase their comparison shopping, so a recession can create opportunities to acquire new customers.

Emphasize Customer Loyalty

Customer loyalty is crucial to the success of any ecommerce business, particularly during recession-proofing measures. Encourage repeat business and returning customers through loyalty programs, personalized discounts, and excellent customer service. Customers are less likely to switch brands and stores if they feel that they are getting a great value already.

Be Adaptable

In uncertain times, it’s essential to be adaptable and able to pivot quickly in response to changing market conditions. Be prepared to adjust your strategy quickly if you notice any change. Keep an eye on industry trends and be prepared to adjust your business model accordingly. Examples of what you can adjust include marketing strategies, new sales channels, or even pivoting your product offerings to meet evolving customer needs.

Invest in Automation Tools to Lower Costs

Just because you decide to cut costs doesn’t mean that you must lower your level of service. Investing in automation tools can help you streamline your operations and lower costs, while improving the customer experience. Branded tracking pages and automated order tracking updates can reduce the number of “where is my order?” (WISMO) calls to your customer service team, helping them free up their time for other customer concerns.

Conclusion

Recession-proofing your ecommerce business requires a combination of strategies, including diversifying your product offerings, focusing on cost-cutting measures, increasing online visibility, emphasizing customer loyalty, being adaptable, and investing in automation tools. Many of these strategies can help you not just by lowering costs and helping you maintain your profitability, but, if done correctly, they can increase your brand value and attract new customers.

Let WISMOlabs show you how you can create a better customer experience at an affordable and recession-friendly price.