Stagflation in eCommerce Land?

Avatar for Martijn Hoogeveen
By
Stagflation in Ecommerce land
Likethumbsup(1)Dislikesthumbsdown(0)

The global environment in which we live is changing quickly. The COVID-19 surge in e-commerce is over and is followed by a memorable e-commerce dip. As consumer confidence is eroded away by high inflation and increasing interest rates, several major economies, such as the US, went already into recession. More economies are expected to follow. Due to the Russo-Ukrainian war, energy price inflation expanded to other categories quickly. Central banks race to set these off by further interest hikes.

The tech industry responded firmly to the recession expectations. Many North American companies like Netflix and Shopify fired significant numbers of staff quickly. Their investors demand a path to profitability.

Stagflation

Is the tech party over like in 2001 after the dotcom crash? Or is a more serious stagflation scenario – high inflation coupled with a stagnating economy – reviving our memories of the crippling 70s? The 70s in which high oil prices led to high inflation, high-interest rates, high unemployment, and subsequently something like a “lost decade” or a “lost generation.” One difference is that the central banks are very much aware of their responsibility to quell high inflation. Another major difference is that unemployment in the US, the Netherlands, and a number of other key Western markets is historically low. This makes it easier to make unpopular political decisions that improve the prospects of a fast recovery.

eCommerce rationalization

Historical low consumer confidence polls make it likely that the e-commerce industry is also hurt. Even despite the long trend from offline to online retail. As e-commerce stocks were receding strongly already in 2021, the call for black figures might resound louder and louder. This leads to healthy rationalization and consolidation, which leads to investing in efficiency rather than growth. Efficient solutions for product data, payment, ordering, and delivery will win. Letting go of staff eases the tensions in labor markets. Labor that is more productive elsewhere.


Subscribe to our newsletter and stay updated.
Loading

Leave a Reply

Your email address will not be published.

Icecat xml
 November 3, 2019
 October 4, 2018
Manual

Manual for Icecat Live: Real-Time Product Data in Your App

Icecat Live is a (free) service that enables you to insert real-time produc...
 June 10, 2022
Manual for Icecat CSV Interface

Manual for Icecat CSV Interface

This document describes the manual for Icecat CSV interface (Comma-Separate...
 September 28, 2016
Manual

Manual for Open Icecat JSON Product Requests

JSON (JavaScript Object Notation) is an increasingly popular means of trans...
 September 17, 2018
icecat add ons

Icecat Add-ons including Magento, PrestaShop, Shopify, Magento, Google Shopping. NEW: Pimcore

Icecat has a huge list of integration partners, that make it easy for clien...
 August 1, 2020
Manual

Manual for Personalized Interface File and Catalog from Icecat

With Icecat, you can generate personalized or customized CSV or Excel files...
 May 3, 2022
New Standard video thumbnail

Autheos video acquisition completed

July 21, Icecat and Autheos jointly a...
 September 7, 2021