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Supply Chain Strategies for eCommerce

Mary Rodriguez by Mary Rodriguez
August 27, 2020
Supply Chain Strategies for eCommerce
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Having a solid supply chain is paramount to running and growing an e-commerce business.

Many things can go wrong with supply chain. However, you can effectively manage it when you try these strategies:

Clarify the Management Model

Each e-commerce is different, and in order to determine your management model you’ll need to take a look at a few things.

First, you must establish the volume of goods you want and if you plan to keep an inventory. Are the goods manufactured by you, or will you be reselling?

Consider price control and just how much you want to spend in the shipping and packaging aspects.

Finding the Right Supplier

The backbone of an e-commerce business is its supply, which can be gleaned from different sources.

Getting the cheapest supplies does have its merits, but have you considered sourcing outside China? Growing your business can mean developing higher quality products or opting for things that are only available in your country, for instance.

Visit trade shows to network and connect to manufacturers and retailers. You can also look in social media channels via search or Google them. Even local retailers can be a source of your supply.

Drop Shipping or Not?

Drop shipping is a relatively new term in the e-commerce industry and has several benefits.

Business owners will no longer have to devote most of their efforts in delivery and inventory. There’s also no upfront costs and you can enjoy lower wholesale prices as well. It solves a traditional problem of keeping stock, which means you won’t need to rent space as well.

Bottom line is that the sales will determine the outcome. Sourcing wisely can mean the difference between a comfortable margin and breaking even. To establish a solid supply chain you will need to map out your budget, marketing plan and more.

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