We all know how the supply chain works in e-Commerce. A customer places their order- once the order is accepted, it is packed, shipped, and delivered to the customer’s doorstep. It might look pretty easy from a customer’s point of view, but there are a lot of things going on behind the scenes.
There are several players in the e-Commerce realm that are trying to keep their businesses afloat. However, the challenges related to logistics, shipment, and transportation functions are causing the biggest drain on their finances.
In this article, we’ll discuss what those issues are and how you can protect your e-Commerce business before these issues grow into something serious. So, let’s get started!
- The Inability To Keep Track Of Your Stock
Did you know that the e-Commerce industry is expected to reach approximately $650 billion by 2025? Yet the biggest and the most frequent problem that e-Commerce business owners face today is OOS (Out of stock). As the products are often stored in warehouses and abundance, it is easier to lose track of stocks, especially without appropriate technology or software.
Many entrepreneurs who are new to e-Commerce business do not have the appropriate means to record the stocks and ensure adequate product supply. This eventually results in customer dissatisfaction, affecting the business.
Solution
If you want to keep track of your inventory, you must invest in the right hardware and software combination and digitize your entire inventory management procedure. Certain apps are available on the internet that allows you to keep track of all your stocks and the various sections of them that need replenishing. You don’t want to run out of the most popular items that are the profit bringers of your e-Commerce business. You can also use IoT devices such as electronic shelf labels for efficient inventory management. It will help you know when a particular product needs to be restocked.
- Underestimating The Power Of A Customs Broker
Several online or e-Commerce business owners do not comprehend what a licensed and proficient customs broker can do for their logistics and supply chain. In the absence of such a professional, they usually lose track of all the regulations and requirements that are critical to keeping their logistics functions smooth throughout. As a result, the shipment gets delayed, and so does the product delivery to the customers. In a few cases, if the delivery takes quite a long time, a few customers even cancel their orders leading to financial loss.
Solution
An expert brokerage firm helps you get clearance at the customs for your import/export consignments. They also help you achieve your organization’s goals and also help you maintain your expenses like a true professional. They maintain global certifications and understand the quality of processes that your online business needs. It is a good idea to look for a dependable customs brokerage firm. They can keep a detailed record of all your invoices, freight data, specialized documentation, valuation, classifications, the record of imported merchandise, and a lot more to keep your supply chain efficient and productive. When the consignments are cleared timely, your customers will be satisfied with the services, elevating the business profits.
- Not Being Able To Gauge Consumer Demands
Statistics show that there are between 2 to 3 million e-Commerce companies in the world (excluding China). Stating the obvious, each company is trying to build its brand name by catering to the needs of customers. Despite consumer needs being very straightforward, they do get influenced by various trends and market competition. Consequently, many businesses fail to gauge the current consumer needs and demands. And when the demand observes a sudden upward turn, they are unable to keep up, resulting in loss of potential customers and profit.
Solution
Staying more active on social media platforms can come in handy here. This way, it will be much easier for you to connect with your audience and understand their pain points. When you are available for your customers 24/7, they are more willing to share their experiences and expectations with you. For example, the majority of your customers want instant deliveries. They would also want flexibility when it comes to changing the destination of the delivery at their convenience. Addressing these concerns can make your supply chain more responsive and flexible.
Final Thoughts
These were a few tips and ideas for e-Commerce and online businesses to come out of this vicious circle of delayed supply. It can help them overcome the shortcomings in their supply chain and make their logistics function much more efficiently along with a competitive advantage.
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