Supply Chain chaos seeing retail product stock below average, says report

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By Published On: September 12, 20220 Comments

A newly released report suggests Australian online retailers are still struggling with stock levels and are advertising through less channels on average than the rest of the world in an otherwise thriving global e-commerce market.

The Feed Marketing Report 2022, conducted by DataFeedWatch via, assessed campaigns and catalogs, advertising strategies and planning strategies for online retailers across the globe to uncover an exhaustive range of insights into contemporary industry trends. In turning its lens to Australia, the report finds that local online retailers are still struggling with supply chain issues leading to product shortages.

On average, Australian online retailers suffer from 23 percent of products being listed as out of stock, well above the global average of 16.7 percent.

Per research from Commbank and ACA Research conducted between the months of May and June this year, the retail and hospitality sector was the second worst hit in Australia by supply chain issues, with as many as 53 percent of businesses in this sector reporting being affected. Change may be on the horizon however in positive news for both retailers and consumers, with the same research showing that the percentage of businesses overall being affected by supply chain issues has actually declined, down to 37 percent from 45 percent in October last year.

At least part of the reason for this decline, it’s suggested, is the work of sharp business owners to circumvent the issues thrust upon the supply chain by COVID-19 and global turbulence abroad. 23 percent of businesses who responded to Commbank and ACA Research reported purchasing more from Australian suppliers rather than looking to import from overseas, with only 20 percent of businesses overall viewing supply chain delays as a key challenge to their business goals over the upcoming year.

Stock levels are not the only metric through which Australian online retailers lack behind the rest of the world, however, with The Feed Marketing Report 2022 also finding that Australian retailers advertise through 22 percent less channels than the global average. But for the team behind the survey, this might not necessarily be the negative it initially seems and could, in fact, be a result of savvy businesses seeking to circumnavigate present and future economic turbulence.

“Strong multi-channel strategies allow finding customers in various niches and increase advertising effectiveness”, says Jacques van der Wilt, General Manager of Feed Marketing at, “[But] focusing on channels that work is one of the proven tactics that will be used during economic slowdown by many online stores. It’s possible that Australian merchants focus on channels that convert and this may prove an effective strategy for the coming Q4 sales”.

The future outlook overall for e-commerce nonetheless remains as bright as ever with e-commerce now accounting for 22 percent of retail sales globally, according to financial services company Morgan Stanley, and that number ultimately predicted to rise to 27 percent by 2026.

By navigating ongoing supply chain issues and utilising adaptive, forward-thinking advertising strategies, online retailers in Australia can hope to reap reward from this ongoing embrace of all things e-commerce.

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