COVID-19, also known as the coronavirus, is currently one of the biggest surprises of the year and leads to significant drops in profits in many companies, and in some industries even to lay-offs. The negative effects of the pandemic are very much felt in economic terms. How has the COVID-19 epidemic affected the overall wholesale?
The situation is chaotic both on the Internet and on TV. The media are outdoing each other in presenting often divergent information. While the virus itself is deadly and should not be underestimated, warehouses closures and delivery problems are rather marginal. The whole business seems to be in a stable and uninterrupted situation. We will try to present the whole situation in answers to frequently asked questions.
How does the world's wholesale trade currently look like?
The restrictions imposed by the governments of most countries in the world and the decisions of some companies may affect in different ways two fundamental aspects:
The situation of transportation is currently unchanged. Despite the restrictions imposed by various countries, the international transport takes place in a standard way. The only inconvenience may be the extended delivery times due to border controls, but these are only minor delays, and not the impossibility of completing orders. There is therefore no cause for concern regarding the international freight transport.
In many countries, the restrictions have been imposed on various areas of trade and industry. Shopping malls, cafés, clothing stores, and other companies do not operate or operate to a limited extent. Should this be taken care of? In our opinion, no, because only a few industries have been affected, while the rest operates without problems, and some even have record sales. In addition, we are in the process of lifting some of them, which brings us closer to returning to the normality.
In most cases, wholesalers operate normally, although of course it depends largely on the industry in which they operate. The clothing wholesalers have fewer orders due to shop closures, but they still work. Therefore, there is no need to worry.
Merkandi team and customer service
The Merkandi team has been practicing remote working for 5 years. We have the necessary equipment, tools and knowledge, thanks to which we are able to provide services at the highest level without any difficulties. In the current situation, our entire team works remotely and due to our professionalism in this regard, this change remains practically imperceptible to our customers. Our Customer Service Office operates normally from Monday to Friday, from 7:30 to 15:30 on all available contact channels - Skype, telephone, live chat and e-mail. We invite you to contact us.
Is it a good time to invest?
In the current situation many companies are giving up their investments because of fear for the future. This is partly understandable because there is no need to gather goods in a closed shop. Nevertheless, it is a good time to invest for several reasons:
- Wholesale trade must always react in advance. If the restrictions in a given country will list the restriction in a month, the trades must order the goods today.
- We observed that many wholesalers have already managed to adapt to rapid changes. They have expanded their offer to include first aid products such as gloves, masks, disinfectant gels and other protective products. This way they have reduced to a minimum the negative effects of the current situation caused by COVID-19, and some have even achieved record sales results.
- Although some shops have been closed and people have been banned from leaving their homes, the wholesale industry still exists. The number of online orders has increased significantly, ensuring continuity and stability for entrepreneurs.
What changes does the pandemic bring into the wholesale industry?
The main focus here is on changing people's attitudes towards the current situation. Savings will constitute an important pillar for families and businesses. This means that even after all restrictions have been lifted, online shopping will continue to enjoy the greatest interest. Therefore, in our opinion, it is online sales that are currently the best direction of development for companies dealing with wholesale and retail trade.
The second important change in social life is the approach to hygiene, which has become even more important in the current situation. That is why products related to it achieve record sales. After the pandemic, the demand will decrease, but it is assumed that hygiene and personal protective goods will continue to be in high demand. Extending the product range to include such products can have very positive effects. It should be remembered, however, that soon the market will be very saturated with them, so we recommend moderate and sensible investments.
Is it a good moment to create an account on Merkandi?
We think it is, because:
- The account on Merkandi is valid for 12 months, and Merkandi undertakes to start counting the period of its validity from the end of the pandemic. Just contact us to extend the validity of your account.
- The current situation is a good time for new investments. This concerns both the search for new business opportunities and the purchase of goods at lower prices. The current situation favours price negotiations.
To sum up
Although the pandemic has spread strongly in some countries, we have it under control at the moment. Governments offer funding, many countries have already reached, or even passed through the peak of the epidemic, and the restrictions imposed are being lifted. While the whole situation will certainly change our daily lives, the wholesale trade will remain the same. Therefore, despite minor inconveniences, most warehouses and wholesalers function and will continue to function unaffected. We therefore encourage you to make transactions, seek new business opportunities and develop your wholesale business. In the meantime, we will try to keep you informed about the current situation in the whole industry. We wish you good health, Merkandi team.