Estimated reading time: 2 minutes, 17 seconds

During the global COVID-19 pandemic, most eCommerce businesses were severely affected by supply chain issues. This happened first and foremost due to importing and exporting from China being shut down. However, there are precautions you can take and ways in which you can adapt your eCommerce strategy for your business not to go under. Based on my experience as a businessman, I believe these risks can be avoided by paying special attention to sourcing and fulfillment centers. By doing this, you will be prepared for any mishaps like the ones occurring due to COVID-19.

Sourcing

When it comes to sourcing, I recommend working with local and overseas manufacturers. The ones from overseas are of higher quality and cheaper, but local manufacturers have a faster production time, so it works better in emergencies. You should work with both manufacturers, depending on the timeframe and the needs you have. For example, I have worked with my local manufacturer to create the product for the first time and with the one overseas for follow up orders. But when the factory in China shut down, I was able to continue working with the one here in the U.S. to manufacture and ship my products. That is why it is important to have redundant manufacturing facilities to be prepared for any unforeseeable issues.

Fulfillment Centers

Once you have figured out your sourcing and know which manufacturers to work with, it is important to have backup fulfillment centers. I have been working with a 3PL warehouse and also with Fulfillment by Amazon. Because of the pandemic creating delays, Fulfillment by Amazon’s shipment estimated deliveries between 30 and 60 days. For that reason, I transitioned all our shipment to the 3PL warehouse and was able to ship products in a week or a week and a half time. From this experience, I can advise businesses to have more than one fulfillment center, in order to guarantee that your products will continue to sell, even if one of the centers is operating slower than usual.

In the past, I had prepared a strategy for my eCommerce with multiple sourcing manufacturers and fulfillment center options, so we were able to continue getting our orders shipped in time. This allowed us to keep most of our orders when other businesses got none or their conversion rates dropped dramatically, due to increased lead times or running out of stock. That is why my best advice to eCommerce businesses–and businesses in general that manufacture and ship products–is to have redundancies, allowing you to continue manufacturing and shipping products, even when a global pandemic affects your supply chain.


Mr. Bartnick is the founder of the Five Day Startup, which teaches people how to run their own eCommerce business.

Last modified on Monday, 06 July 2020
Read 173 times
Rate this item
(0 votes)
Tagged under

Visit other PMG Sites:

click me
PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.
Ok Decline