It is a known fact that COVID-19 has spread everywhere across the world which is also the reason why it has been declared a pandemic from an epidemic by the WHO. Also, the virus is spreading like fire all over the world which is why strict rules have been placed and people are being kept into isolation if found to be positive. In addition to this, we also know that e-commerce retailers are facing a shortage of supply because people are starting to stock up necessary items.
On the other hand, there will be disruptions in the supply chain for these e-commerce retailers because the pandemic has generated from China which is the biggest source of products all over the world. Now, a new survey shows that retailers are prepared for disruptions in the financial and supply chain due to the outbreak. This is also evident from the fact that they have decreased their estimates for the first quarter which is to guide their investors.
Nearly half of the retailers now expect their revenues to be down due to the outbreak of this virus even though the demand has been tremendous but it is mostly for products such as face masks, toilet papers, sanitizers and other essential items.
The survey mentions that “The coronavirus, known as COVID-19, is bound to have many consequences for consumers, but for retailers, this is uncharted territory,” while adding that “Our findings suggest that most are cautious and taking some action, although it doesn’t appear that panic mode has set in,”
The survey still adds that “Given the 24-hour news cycle, retailers certainly could have moved into panic mode since they’ve taken this survey, It will be interesting to see how this evolves in the weeks to come.” which means that they see a potential of panic creeping into panic mode due to this outbreak.