COVID’s Continued Impact on Direct Sellers

Feb 23, 2022
By DSJ Staff

DSA’s QuickPulse, the monthly survey that provides higher-frequency direct selling tracking data on the overall US and global business impacts of the pandemic, revealed refreshed results in the February issue related to the COVID-19 impact on DSA member companies. The survey was fielded February 8–11.

1. Impact of COVID on US Company Revenue

  • 43% cite a positive impact to US company revenue from the pandemic
  • 40% cite a negative impact
  • 17% cite a neutral impact

2. Impact of COVID on Global Company Revenue

  • 58% say the pandemic has a negative impact on global company revenue
  • 38% cite a positive impact
  • 4% cite a neutral impact

3. Supply-Chain Challenges

Nine in 10 companies (90%) indicate they are experiencing global supply chain issues. Of those experiencing supply chain issues, 81% say these issues are having a moderate or significant impact on their business in the US.

Compared to three months ago, 67% say supply-chain disruptions are impacting their business about the same; 19%, more; and 15%, less.

Thirty-six percent anticipate general supply-chain disruptions will continue for 6 or more months; 41%, 5-6 months; 9%, 3-4 months; and 14%, 2 or less months.

The top five supply chain challenges of direct selling companies in February are:

  • Higher production or shipping costs (88%)
  • Product/component/raw material production delays outside US (77%)
  • Transportation delays outside US (77%)
  • Product/component/raw material production delays in US (50%)
  • Supply chain staffing challenges in the US (42%)

“Higher production or shipping costs” was the most cited issue in the last four months and cited by more than 80% for the third consecutive month.

4. Inflation

Among companies citing “Higher production or shipping costs” as an issue, they are dealing with the challenge as follows:

  • 27% by only absorbing the impact of the higher costs
  • 45% by only raising prices
  • 23% by both raising prices and absorbing the impact of the higher costs
  • 5% by both raising prices and changing product offerings

Among the 68% that are raising prices:

  • 36% haven't raised prices yet, but will in the next three months
  • 50% have already raised prices
  • 14% already raised prices and are strongly considering raising them again in the next three months

All direct selling companies are encouraged to participate in DSA’s QuickPulse research, which is fielded at the beginning of each month. As a benefit of your company’s participation, you’ll receive the comprehensive results report and crosstabs. For questions or to be added to the distribution list, contact membership@dsa.org.

  • DSA Briefs
  • February 2022