5 Tips to Survive and Thrive During an Ecommerce Recession

The COVID-19 pandemic brought e-commerce to the top, but now a new recession is tightening monetary policy and weakening global economic growth. With FAANG cutting overhead and staffing, smaller businesses are also following suit and even (in the worst case scenario) closing their doors for good.

There is no denying that digital brands have already been affected and will continue to suffer the consequences during 2023. Declining sales, struggles to maintain performance and technological optimization are some of the most anticipated, but not the most drastic, changes.

In this piece, we will dwell on some facts about the current recession in e-commerce and how it will affect the industry, as well as provide recession-proof tips to help you survive the economic downturn.

What is the impact of a recession on e-commerce?

For e-commerce business owners, the economy plays a big role in both consumer habits and operating costs. Could the whole situation be as bad as it was in 2008? Probably. Consumer spending is likely to decline as people have less disposable income and try to delay or at least limit excessive purchases.

According to the World Economic Forum, e-commerce began shrinking in 2022, with traffic down 13% in Q2, as well as conversion rates and revenue. In 2023 this negative trend will prevail. As a result, when a recession is imminent, business owners must plan ahead.

As most e-commerce businesses compete in the same industry and attempt to maintain sales even...