To thrive as a successful eCommerce business, you need to manage your supply chain effectively. In practice, this accurately monitors stock levels and ensures the smooth transfer of products and supplies. Combined, these factors keep customers coming back and generate revenue for your company.
Understanding the unique demands of an eCommerce supply chain can be complex. We’ve outlined a few things you should know about managing one effectively in our quick guide below.
How has ECommerce changed the Supply Chain?
The demands of a modern eCommerce businesses are different. In the past, brands could predict customer demands a little bit more easily – based on seasonal patterns, sales projections, and routine reports.
But contemporary supply chain management operates with new criteria. With unpredictable events like the Black Friday sales prompting all-time transaction records, eCommerce retailers must react quickly to consumer trends.
Online retailers must focus on visibility, automation, and an efficient, responsive supply chain.
What does a Successful ECommerce Business Supply Chain look like?
In traditional bricks-and-mortar settings a business supply chain might look quite different to one in an eCommerce setup. Based on a network of people and technologies to complete each transaction successfully, a supply chain should be carefully planned and orchestrated, including:
- Planning
- Sourcing
- Inventory management
- Logistics and shipping
- Customer returns
If you offer returns to your customers, it’s absolutely essential that the shipping and returns processes are user-friendly, fast, and hassle-free. This crucial aspect must be accounted for when building a website. Consulting eCommerce web development experts in the process could guarantee a seamless interface for your customers.
Why do eCommerce businesses need a Supply Chain?
Robust eCommerce supply chain management could make the difference between a withering and a thriving online business. To advertise and sell successfully online, your supply chain needs to be optimised.
Once an eCommerce business incorporates an efficient system to manage its supply chain, the benefits can be far-reaching. Along with maintaining customer loyalty, effective supply chain management helps to:
Confirm stock availability
For customers, being able to check the current availability of a product has a significant impact on their satisfaction with your ecommerce website. Most customers will only shop if they know that what they’re looking for is available – and if they repeatedly see it out of stock, they’ll shop elsewhere.
It’s imperative for businesses to keep on top of supply chain management for this reason. Goods must be moved efficiently from manufacturers to end users in order to drive sales.
Encourage positive reviews
Up to nine out of ten customers check online reviews before buying from a business in the UK, so you’ll need to do everything possible to make sure that you can earn good feedback.
Positive reviews can be repurposed as one of your most important marketing tactics. Unfortunately, eCommerce businesses are slightly more prone to negative reviews, so it’s absolutely vital for you to provide a seamless shopping experience.
Increase profitability
The competitive nature of the eCommerce market might make it hard for your business to stand out. With incredibly tight margins, you’ll need to keep supply chain operations cost-effective while maintaining their efficiency.
Try not to get in the habit of over-purchasing stock. Carrying only the inventory you need helps you maximise your storage space and keep current line products in stock. It might take a few months to tune in with this process, but once you’ve nailed it, your profits will return.
With a difficult economic year on the horizon, it’s crucial to harness your potential as an eCommerce retailer. With a professionally managed supply chain in place, you’ll enjoy scope to thrive.