Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Labor shortage holding back e-commerce

Labor shortage holding back e-commerce

Labor shortages are holding back e-commerce, with many online shops having to stop advertising online because they cannot cope with the increased demand, according to a press release sent to the Budapest Business Journal.

Kristóf Gál, founder of Klikkmarketing, said that companies able provide good working conditions and salaries are still able to recruit skilled professionals. However, retaining workforce has become the new recruitment, he added.

Gál noted that recruitment has become more important than ever before, as most people don't realize how much work and expense it is to find a new person for a position.

According to research by GKI Digital, the turnover of online retail in Hungary was HUF 909 billion in 2020. The 45% increase compared to the previous year is largely due to the circumstances caused by the coronavirus epidemic, and the results are above average even by international standards.

"We know of several companies that have to scale back their marketing because they simply can't meet the demand. Some are even shutting down their online advertising at the weekend because by Monday they have so many orders piling up that they can't even meet their commitments in time. This is clearly due to a lack of staff in the business," Gál said.

30-40% of online shops are affected


The expert also said that companies are not recruiting well online and there is actually a shortage of good employers in the market.

"Any company that has values, a vision, can offer good pay and working conditions, and values its employees, is sure to find efficient and skilled people. In many companies, labor shortages are a symptom, but they are really just badly organized," he explained.

He estimates that 30-40% of online shops could be affected by this problem, as this year they are so buoyant that they could be doing twice as much business as they do at Christmas, even in the previously slowest months.

He also suggests that work organization needs to be thought through more strategically. It's not unusual for someone to have a very good first quarter of the year, but then see a drop in demand in the summer season. So sometimes you need 15 people, other times only 5, which has to be woven into the plans. The best way to do this is to work with non-fixed workers, possibly students.

"Labor costs go up, you have to adapt to that. The new recruitment is clearly retention, it's become much more important to keep the best people, to pay more attention to them. Another solution is to improve efficiency, because it's not inconceivable that you can do the same job with fewer people," he said.

He added that firms misjudge the time and cost of recruiting new staff. On Facebook, one may spend up to HUF 300,000 to find the right person, but most people are not willing to spend that much. And the more expensive an employee is, the more one has to spend to "hire" them.

Finally, he noted that customers also feel the effects of staff shortages, with slower customer service response times and delayed deliveries, which in the long run damage a company's reputation.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Storm-Triggered Landslide in Sicily Pushes Cliffside Homes to the Edge as Evacuations Continue
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
Tech Brief: AI Compute, Chips, and Platform Power Moves Driving Today’s Market Narrative
NATO’s Stress Test Under Trump: Alliance Credibility, Burden-Sharing, and the Fight Over Strategic Territory
Greenland, Gaza, and Global Leverage: Today’s 10 Power Stories Shaping Markets and Security
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
No Sign of an AI Bubble as Tech Giants Double Down at World’s Largest Technology Show
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Russia Deploys Hypersonic Missile in Strike on Ukraine
There is no sovereign immunity for poisoning millions with drugs.
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
President Trump Says United States Will Administer Venezuela Until a Secure Leadership Transition
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Diamonds Are Powering a New Quantum Revolution
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Fine Wine Investors Find Little Cheer in Third Year of Falls
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
European States Approve First-ever Military-Grade Surveillance Network via ESA
The Ukrainian Sumo Wrestler Who Escaped the War — and Is Captivating Japan
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
×