Your Supplies for the Holiday Season Might Get Stuck! How to Prepare for Potential Supply Chain Disruptions

If the COVID pandemic taught us anything, it’s that even successful brands can crumble under the pressure of supply chain disruptions.

Just think about Nike—they lost $50 million in revenue when Vietnam, a key manufacturing hub for them, had to shut down many of its factories.

And then there’s Apple, which had to cut back production of its flagship products, like iPhone 13, all because of the global semiconductor shortage.

There’s also GM, which lost billions of dollars after failing to produce several high-demand models, including its popular pickup trucks. And the list goes on.

Now, if these giants were hit that hard, imagine what smaller businesses went through.

The U.S. Chamber of Commerce reported that around one in four small businesses had to shut down temporarily during the peak of the pandemic. Eventually, more than 100,000 of them didn’t make it and permanently disappeared by the end of 2020.

The crazy part? Pandemics aren’t the only thing that can mess up the global supply chain. Many other factors can push your business to the brink if you’re not prepared.

Take natural disasters, for example. Hurricanes, earthquakes, and floods can destroy infrastructure, halt transportation, and delay production.

Then, there are labor strikes. When workers at key points like ports or factories go on strike, your supply chain can come to a complete standstill.

Trade wars are another big risk. Look at the U.S.-China trade war—higher tariffs and stricter regulations mean more delays and increased costs for businesses that rely on international imports.

What about cyberattacks? They’re a constant threat to logistics systems. In 2021, a cyberattack on Colonial Pipeline caused a temporary fuel distribution shutdown on the U.S. East Coast, showing just how much a digital threat can disrupt supply chains.

And that’s just the tip of the iceberg.

If you follow the news, you'll see that these kinds of issues happen all the time. It's not just the fact that they occur that causes disruptions, but also because the global supply chain is so complex that even the smallest hiccup, whether from natural or human causes, can throw things off.

And what does that mean for you as an only seller? Well, it only means your online business is constantly at risk of supply chain disruptions, and being prepared isn’t optional.

Even if the chances of these disasters impacting your business are slim, you still need to have a plan in place, especially if you don’t have a safety net to fall back on. It’s always better to be ready than caught off guard.

Now that the pandemic is over, I’m sure your business has bounced back. But that doesn’t mean you can finally sit back and relax. There are still threats coming from all directions that you need to be ready for.

The first step is staying informed about the latest risks.

So, what’s happening right now?

One of the biggest ongoing threats comes from labor disputes and extreme weather. For instance, the negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) are stirring up uncertainty at 36 key U.S. ports.

These ports handle a lot of international trade, so if the ILA strikes as planned on October 1, 2024, it could cause massive delays—especially for important items like chemicals for water treatment and electronics that need computer chips. The last time the ILA had a major disruption was way back in 1977.

And don’t forget the storm season of 2024—it’s been brutal. Stronger, more frequent storms fueled by climate change are hitting logistics hard, causing longer shipping delays, higher costs, and making it harder to deliver essential goods to customers.

The Panama Canal, which is a key shipping route that connects the Pacific and Atlantic Oceans, is also experiencing droughts. This has already slowed down shipments from Asia to the U.S. East Coast.

Ongoing geopolitical issues, particularly between the U.S. and China, are another major supply chain threat. The U.S. government's efforts to promote domestic production and reduce dependency on foreign suppliers, especially for critical technologies, will lead to shifts in supply chain patterns over the next few years.

How will these events impact your online business?

As a small online seller, I know you probably rely on a few key suppliers—sometimes even just one. If the U.S. East and Gulf Coast ports shut down due to the labor strike in October, your restock orders, especially from overseas, might not arrive on time.

This could mean your customers are left waiting, which may lead to frustration, negative reviews, or even lost sales. And the timing couldn’t be worse—it’s almost the holiday season, and you’ve likely placed large orders to prepare for the rush.

While bigger retailers face the same challenges, they have more resources to handle the situation. They can afford to switch suppliers or reroute their shipments.

For a small business like yours, though, it’s much harder to deal with these setbacks. If your products are delayed, it could drive up your costs, forcing you to either raise prices or absorb the losses.

Let’s be honest—either way, it's going to affect your profits. Think about it: if you're selling custom products that depend on imported materials, like handmade jewelry or unique phone cases, any delay in getting those supplies could stop your whole business right when you need it to be running smoothly.

Bad weather makes things even worse. With climate change causing more frequent storms, shipping routes get disrupted more often. This could mean your products sit in warehouses longer than expected, or you might have to deal with price increases due to shipping issues.

Big retailers have dealt with delays of up to two weeks for electronics and clothing during past disputes. For smaller businesses like yours, even a short delay could lead to missing out on important sales, especially if your profit margins are already tight.

The numbers back this up. During previous hurricanes, import wait times increased by 43%. If a strike hits during storm season, you could be facing similar delays.

How can you protect your online business from supply chain disruptions?

The first thing you can do is diversify your suppliers. If you rely on just one or two suppliers, especially from overseas, a single delay could bring your business to a standstill.

Try to find local or regional alternatives for some of your key products or materials. This reduces your dependency on one supplier or shipping route, especially during peak seasons when any delay can cost you valuable sales.

Next, think about increasing your inventory of best-selling items, but do this strategically. You don’t want to overstock on everything, but if you know certain products will be in high demand, it's smart to have a bit of a cushion.

It’s a balance—you don’t want to tie up all your capital in inventory, but running out of stock during a busy season could lead to missed sales and frustrated customers. The last thing you want is to be turning away business because you can’t deliver on time.

I’ve seen sellers keep just enough of their top sellers to last through potential delays, while still maintaining the cash flow to manage other parts of their business. During times of uncertainty, a small buffer can make a big difference.

Another important step is to stay in constant communication with your suppliers. Get regular updates about potential delays and stay proactive in understanding what's happening on their end.

Some online sellers have found success using software tools that track shipments and predict delays, helping them make quick adjustments to their inventory plans.

For instance, companies like Project44 provide real-time data on shipment statuses and expected arrival times. Even if you don’t use advanced tracking tools, simple, frequent communication with your suppliers can give you an edge.

Knowing about a potential delay even a few days earlier can help you set customer expectations and avoid negative reviews.

Also, consider offering pre-orders or extended delivery timelines if delays are inevitable. Being upfront with your customers can actually build trust. They’ll appreciate transparency more than a last-minute surprise about a delayed shipment.

During the 2021 global shipping crisis, many online sellers turned to pre-orders as a way to keep cash flow going while managing stock issues. Customers who understand there’s a delay are often more willing to wait if they know what’s happening in advance, and that way, you don’t lose sales entirely.

On the technical side, updating your website to reflect real-time stock levels can prevent overselling products that you might not be able to restock quickly.

Implementing inventory management tools can help you sync up your stock with your online store, so your customers always know what’s available and what’s not.

This not only improves their shopping experience but also keeps you from overpromising and underdelivering—a common cause of negative reviews.

Lastly, keep an eye on your shipping options. With potential strikes looming, it might be worth exploring alternative shipping routes or carriers. Even though large-scale disruptions are difficult to fully avoid, having more than one shipping option gives you the flexibility to adapt if one route becomes unreliable.

For example, during past port strikes, sellers who had relationships with multiple carriers were able to reroute shipments, preventing major delays.

Statistics show that during the West Coast port slowdown in 2015, businesses that had alternative shipping methods saved up to 20% on logistics costs by avoiding spot market rate spikes.

Protecting your business from these disruptions requires forward-thinking and a willingness to make adjustments before the situation hits hard.

By diversifying suppliers, strategically managing inventory, staying in constant communication, offering flexible delivery options, and preparing your logistics, you’ll be in a much stronger position to navigate whatever challenges come your way.

It’s not about avoiding every disruption—sometimes that’s out of your control—but taking the right steps to minimize the impact on your business.

I hope these tips help you organize your thoughts and prepare for potential supply chain disruptions, not only in the coming months but also as your business grows in the future.