This has been a challenging year for almost everyone, but there is some good news ahead for the direct selling channel. Several factors have aligned, and we expect social sellers to have their best holiday season since we started benchmarking industry performance in 2009.
The number of social sellers in the direct selling channel is up significantly this year as people have been furloughed or seen their hours or salary reduced.
Government-imposed restrictions earlier this year related to the coronavirus pandemic closed many retailers or restricted consumers’ access to their stores. Now, as most have reopened, cuts in staffing and issues with inventory availability have significantly diminished the customer experience.
eCommerce channels have seen a jump in growth this year, and this spike in volume has frequently created product availability or service issues. Delivery commitments were more frequently not met. Product quality issues were harder to address. Consumers rediscovered the value of dealing with a person on the other end of a transaction.
We have benchmarked the direct selling industry for more than a decade, and we are already seeing signs that this will be a record holiday season for social sellers. Anecdotally, some clients have already sold out of their holiday product presale offers to their distributors.
A strong holiday season may very well give millions of social sellers a reason to celebrate.