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Ways supply chain management is helping E-commerce giants to grow larger


12th Apr 2022 Down to Business

Ways supply chain management is helping E-commerce giants to grow larger

One of the main factors that drive the growth of e-commerce companies is efficiency at all levels of operations. 

Supply chain management is a big part of ensuring such efficiency. 

By leveraging specific aspects of the supply chain management process, e-commerce giants such as Amazon are growing even larger. This is how.

Encouraging positive customer reviews

Up to 72% of customers will visit a website or even purchase after reading positive reviews about a business. And that’s not all, as high as 93% of online shoppers admit to making a decision based on reviews.

E-commerce businesses are coming to terms with these statistics and are using positive reviews as a major marketing and selling point. But on the other end of the spectrum, E-commerce companies are also hugely affected by negative reviews and these can have a drastic effect on sales.

This is why companies need to take great measures to manage the reviews they get. Effective supply chain management ensures that orders are received and delivered quickly and effectively to customers which keeps them happy and encourages them to give positive reviews.

Confirming stock availably

One of the most useful pieces of information that customers should have access to is the availability of products. Such information can mean the difference between losing a customer and making a sale.

If you have ever made a purchase online, then chances are you’ve based your decision on knowing that the product is available and that you can get it within a certain period.

E-commerce giants understand that customers don’t want to be disappointed. They are looking for reliability and availability. Through effective and efficient supply chain management E-commerce businesses can ensure that stock is always available which goes a long way toward driving sales.

A major part therefore of every E-commerce business’s marketing strategy should be to ensure that products are always available.

Boost profit with effective Supply chain management

If there is one thing that stands out about the E-commerce space is that it is highly competitive. Price drives a majority of the sales. This means that supply chain management should always remain cost-effective to ensure product prices are as optimal as possible to be able to compete in the market.

There is a common misperception that stock levels need to remain high to ensure that businesses always fulfill orders. This is not true and only leads to tying up the capital in stock instead of using it on other business processes such as marketing.

Overstocking could also cause the stock to expire if it doesn’t move to the customer on time. Collectively all this can reduce profit significantly.

If you are interested in running or joining an E-commerce business, you may want to learn how to make the supply chain more effective and efficient. There are many supply chain management courses online that you can join and learn the skills you need to make the business more efficient.

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