The COVID-19 pandemic is devastating countries around the world, and India is no exception. The virus has significantly impacted countless lives, ushering in the new era of work from home, and forcing unprecedented changes in the way business is conducted. Even with record-breaking advances and innovations in medical testing and treatment of the disease, India has lost nearly half a million lives to COVID-19. While still learning to understand our “new normal” way of living, India is bracing for the emergence of the highly contagious Omicron variant.
 
With the easing of restrictions and increasing mobility, our economy is experiencing record growth; India is poised to remain one of the fastest-growing emerging markets through 2023. Retailers stand out as showing some of the strongest growth potential during the pandemic, and eCommerce firms are gearing up to face the challenges that Omicron brings.
 
Firms that provide supply chain and logistics support to eCommerce retailers are also preparing for the battle ahead. Since the onset of the pandemic in 2020, many eCommerce business have implemented measures to help prevent the spread of the disease and keep their employees, associates, and partners safe. Many logistics firms and eCommerce retailers are also arranging to get their workforce fully vaccinated.
 
B2B logistics industry insiders say it will not suffice to focus on hygiene or initiatives like contactless delivery. Investing in localized logistics networking will likely become the crucial differentiator ensuring smooth supply chain operations. Many eCommerce giants have increased their storage capabilities and expanded their logistic hubs to Tier 2 and Tier 3 cities. Concurrently, supply chain firms are maintaining and growing their logistics support to Tier 2 and Tier 3 cities for business continuity. According to the Vice President of Amazon India, Manish Tiwari, 65% of Amazon India’s orders are from Tier 2 cities. Focus on these areas may be critical to success as India faces the likelihood of a sharp rise in the number of COVID-19 cases and renewed mobility restrictions.
 
Goods and household electronic appliances retailers are monitoring their supply chain processes closely while Omicron’s impact is being evaluated. Packaged food companies confirm that thus far the new variant has not negatively impacted their business.
 
Manufacturers of household appliances have diversified their supply chain over the last twelve months to ensure that they are better equipped to manage pandemic related disruptions.
 

Potential risks for eCommerce retailers to keep an eye on

Supply chain disruptions – Omicron-related bans are currently restricted to Africa and have not yet caused a significant disruption to the global supply chain. However, the World Health Organization has named Omicron a “variant of concern,” and businesses everywhere should consider developing contingency plans to prepare for Omicron’s potential global impact. As witnessed during the early days the pandemic, a widespread outbreak would significantly increase the risk of widespread manufacturing delays, international transit challenges, and domestic logistics issues.

Dropshipping difficulties – Dropshipping was particularly impacted with supplier delays and logistical challenges during the dawn of the pandemic. If the current situation declines, health and safety measures may lead to manufacturing bottlenecks, tight freight capacity, slower transit times, and logistics complications. Consider working with a third-party order fulfillment provider for an added layer of stability for your business during these difficult times.

Lockdowns – While there may be intent to avoid lockdowns locally, overseas suppliers and various other supply chain stakeholders may be impacted by rules set in other jurisdictions. Make sure that your contingency plans account for the effects of lockdowns in other parts of the world.

Surge in eCommerce market – The world saw significant increases in eCommerce orders throughout the pandemic, with India’s eCommerce surging more than 27%. Many of the well-prepared eCommerce businesses were able to cope with increased demand, while others without strong contingency plans struggled to navigate through the steep order increase.

Staffing shortages – While early indications are that Omicron is not as deadly as other variants, some data suggests that it is significantly more infectious. Around the world, organizations struggle when significant portions of the workforce become unavailable simultaneously due to illness.

Scientists and researchers are working relentlessly to provide more information on the Omicron variant to help us better understand how it may impact our businesses and our personal lives. Experts believe that consumers and business should follow the current health and safety guidelines, and adapt to changing recommendations as they learn more about the Omicron variant. As we await additional information about the Omicron variant, eCommerce brands should take precautionary measures and fortify their contingency plans to avoid any issues that might negatively impact their business, fulfillment models, and supply chain. If you are looking for a third-party fulfillment provider or seek to consult with experts who can help make sure you are well prepared for Omicron’s challenges, please contact XPDEL today! Together we can win the fight against the coronavirus’ next wave!

XPDEL is a leading hi-tech provider of fulfillment and logistics services, on a mission to enable growth for eCommerce companies. Our existing customers know that our core competencies are focused on helping them grow. We are futuristics in our vision and constantly work to create technology that allows us to meet customer expectations for today and tomorrow. Our vast network of fulfillment centers across India places us closer to your customers and enables us to deliver more quickly and efficiently than the competition.