No, this isn't a chart of U.S. stock market indices or inflation rates. It’s a chart of the frequency of Category 4 and 5 hurricanes over the past nine decades.
Even without being a meteorologist, you can clearly spot the upward trend. And if you've lived on the East Coast all your life, you’ve definitely experienced this trend firsthand.
Just this year, Florida was struck by two major hurricanes—Helene and Milton. Helene made landfall as a Category 4, while Milton, although it hit as a Category 3, initially swirled in the Gulf of Mexico as a powerful Category 5.
Together, these storms left behind approximately $100 billion in damage. And that doesn't even account for the potential billions in economic losses, particularly from disruptions to e-commerce operations.
That’s what we’ll focus on in today’s lesson—how to future-proof your online business against increasingly destructive hurricanes.
First, let’s talk about the disruptions hurricanes cause in e-commerce and what happens now that these hurricanes are getting more destructive.
If you're an online seller, you probably know firsthand how storms can throw a wrench into everything from shipping to customer satisfaction, but with hurricanes growing stronger, the impact is only getting worse.
Take supply chains, for example. When a major hurricane hits, it doesn’t just cause some minor delays—it can shut down entire transportation networks.
Roads get washed out, ports close, and airports halt operations, which means your products get stuck either in a warehouse or in transit for days, maybe even weeks.
Remember Hurricane Harvey in 2017? It caused an estimated $125 billion in damage, and part of that was due to massive disruptions in shipping and logistics.
Now, imagine hurricanes like that becoming more frequent. A single delay in one region can create a ripple effect, leading to backorders and unhappy customers. And for businesses that depend on fast shipping to maintain customer loyalty, this can be a nightmare.
Then there’s the issue of last-mile deliveries. Hurricanes don’t just slow down shipping—they bring it to a grinding halt.
After Hurricane Ian in 2022, entire neighborhoods were inaccessible for weeks because of flooding and debris. Imagine trying to get products to customers in that kind of scenario. It’s not just a delay; it’s a total standstill.
And customers don’t always care if it’s a natural disaster. They want their orders, and when they don’t get them, it leads to an influx of complaints, refund requests, and even canceled orders.
A survey found that 69% of customers are less likely to shop with a retailer again after a bad delivery experience—hurricanes make that statistic even more alarming.
Power outages are another huge problem. If your business isn’t prepared, you could be left in the dark—literally. When Hurricane Maria hit Puerto Rico in 2017, it caused the longest blackout in U.S. history, lasting nearly a year in some areas.
Now, imagine being an online business trying to operate without electricity or Internet for even a few days. It’s nearly impossible. Your website could go down, you can’t process transactions, and you lose touch with your customers just when they need reassurance the most.
And the longer these outages last, the more it eats into your revenue. Even if you’re not directly in the storm’s path, your operations could be impacted because of dependencies on infrastructure in affected areas.
Customer behavior also shifts dramatically before, during, and after a hurricane. Before a storm, you’ll see a spike in sales for emergency items—batteries, generators, non-perishables. But after the storm, that demand drops, especially for non-essential items.
People are focused on recovery and may not have the financial resources to spend on things that aren’t critical. For example, after Hurricane Katrina in 2005, consumer spending in affected areas plummeted as people shifted their priorities to rebuilding.
With hurricanes now causing even more destruction, this kind of economic downturn could last longer and impact your bottom line more severely.
Let’s not forget about returns and refunds. After a storm, many products either don’t make it to the customer or arrive damaged due to the harsh conditions. This can lead to a spike in return requests and refunds, creating even more financial strain on your business.
In 2021, it was estimated that e-commerce return rates for all products were about 20%, but after a major storm, this number can climb higher, especially if deliveries are delayed or compromised. Imagine dealing with that while also trying to navigate the logistics of recovery.
And then there are the increased costs that come with operating in hurricane-prone areas. As hurricanes grow stronger, insurance premiums for covering damage to your inventory, warehouses, or fulfillment centers are likely to go up.
You may even need to invest in backup power systems, disaster recovery plans, or additional warehouses located in safer regions just to keep your business running.
In 2020, businesses in the U.S. spent over $13 billion on disaster recovery and preparedness, and that number is only expected to rise as climate change continues to fuel more intense storms.
So how does your online store adapt?
Adapting to the increasing threat of hurricanes as an online seller really boils down to one thing—being ready before the storm even shows up on the radar. You don’t want to find yourself scrambling when a hurricane hits.
So, how can you prepare?
First off, let’s talk about suppliers. If you're relying on just one or two, especially if they’re in areas that tend to get slammed by hurricanes, that’s a risky game.
Imagine your main supplier in Florida is shut down for two weeks because of a storm—what happens to your business? You could be left with empty shelves and frustrated customers.
To avoid this, try having backup suppliers, maybe from different states or even overseas. That way, if one gets knocked out by a hurricane, you’ve got another lined up and ready to go.
For example, after Hurricane Harvey, a lot of businesses that depended on local suppliers were stuck because they didn’t have alternative sources lined up. The ones who did, however, bounced back much quicker.
Now, inventory. It’s always a tricky balance, right? Stocking too much ties up your cash, but being too lean leaves you vulnerable when supply chains break down.
Hurricanes have a nasty way of making things unpredictable, so maybe consider boosting stock levels on high-demand items during hurricane season.
Data can be your best friend here—look at your sales trends from previous years, especially during storm season. If you know what products fly off the shelves, keep them in stock before the storm hits.
A study showed that businesses with higher inventory during natural disasters recovered 20% faster than those that ran low on stock.
Shipping is another biggie. Don’t put all your eggs in one basket by relying on just one carrier. What happens if that carrier can’t deliver because of road closures or a flooded distribution center?
Have partnerships with multiple shipping companies, so if one gets overwhelmed, you can pivot quickly. And here’s where communication comes in.
When a storm is on the horizon, let your customers know what’s happening. An email or even a text message goes a long way.
People are generally pretty understanding when they know what’s going on. But if you go silent, expect the customer complaints and negative reviews to start piling up.
After Hurricane Florence, businesses that communicated proactively with their customers saw 35% fewer complaints than those that didn’t.
You also need to think about how your own operations will hold up during a storm. Is your website hosted locally, or is it in the cloud? If your area loses power, can you still keep things running?
Consider moving your business operations to the cloud if you haven’t already. That way, even if your local office is out of commission, your online store is still open for business.
And if your customer service team is local, maybe look into having remote workers or an outsourced team in a different region. This way, you’re not leaving your customers hanging when they need support the most.
Let’s not forget customer relations. After a hurricane, customers may ask for refunds or replacements, especially if packages are delayed or damaged. Having a clear and flexible policy in place can save you a lot of headaches.
The easier you make the process, the better. And consider offering something extra to smooth things over, like a small discount or loyalty points for those affected by the storm. It’s a small gesture that shows you care, and it helps build goodwill even when things go wrong.
After Hurricane Sandy, companies that offered special discounts to storm-affected customers saw a 15% increase in customer retention.
Finally, think about the long-term. Investing in disaster preparedness is key. This could mean better insurance for your inventory or strengthening your relationships with logistics partners who can handle emergencies.
Some businesses even go as far as relocating their fulfillment centers to areas that are less prone to natural disasters, or at least having secondary locations that can pick up the slack.
In 2018, a company that moved its fulfillment operations inland after Hurricane Michael hit Florida reported a 30% increase in their ability to handle disruptions compared to previous years.
At the end of the day, being an online seller in the face of stronger hurricanes is about being ready for the unexpected. Build flexibility into your supply chain, shipping, customer service, and even your disaster response plans.
With the right preparations, you can keep your business running smoothly, no matter how rough the weather gets.