The global car chip shortage has been widespread in recent years, becoming more severe in 2021, and is forecasted to continue till 2024 by Ford Europe’s Herrmann. It affects our business on a large scope, including not only the car industry but also our eCommerce activities.
Our article today will take you to go through some important points, providing the causes of the global car chip shortage, its impacts, and suggested ways to confront it.
How To Tackle Global Car Chip Shortage?
Why Is There A Global Car Chip Shortage?
Car chip is the essential part not only with carmakers but also with the automotive industry. The development of car and automotive equipment manufacturers and has increased the demand for car chips. However, the pandemic has put the factories into procrastination, and the number of car chips produced has dropped significantly.
Moreover, the frozen logistics activities due to the lockdown of many cities have prevented the merchants from accessing car chip stock.
How Does Global Car Chip Shortage Impact Your Business?
If you sell cars, car chips, or automotive devices on your eCommerce stores, the car chip shortage will make the producers can not make cars as scheduled. Then, your suppliers can not have enough stock to provide you.
Moreover, the social distancing in the pandemic tends to make people go to eCommerce platforms to buy the products. Facing the soaring demand for those products, but the eCommerce merchants can not meet the need, causing a considerable loss in revenue. Moreover, the customers will feel disappointed if they can not have their favorite items. Therefore, your stores will lose potential and loyal customers, reducing future profits.
What are the solutions?
Forecast Upcoming Demand
To eliminate the car chip shortage situation, you can rely on customer behavior tracking, selling data, and some related indexes which are recorded by an automation application on your eCommerce stores. Then, you can use some econometrics to analyze or use an analytic application to find out what your customers’ preference, upcoming trends, and forecast car chips demand of purchasers. Therefore, you can enhance your inventory capacity to handle the needs.
Backorder
Backorder is the most effective way to deal with out-of-stock. Have you wondered how to allow customers to buy their expected items while we don’t have any product left? Backorder is a satisfactory answer.
You can use the Backorder app on the Bigcommerce platform to pre-set on your products, whenever they are sold out, the order status will turn into a pre-order one. Therefore, the buyers can order car chips or cars as normal, stay at home, keep track of the delivery by email notifications. With Backorder, you can earn profits with an empty warehouse, reduce the costs of storing stocks, and minimize the risk of deadstock.
Conclusion
The global chip shortage has made the eCommerce business worse. The lucrative markets like cars, automotive equipment have become the source of loss and risk for many merchants in recent times. To reduce the awful impact and rescue eCommerce merchants from the crisis, we have suggested some robust solutions with the aim that the hurt of the global car chip shortage will be alleviated soon.
