Guide to Key Matters in the Procurement Process for Independent Station Sellers’ Shipping
For independent website sellers, the smoothness of the shipping process largely depends on the control of the procurement process. Procurement not only directly affects the stability of inventory, but also relates to the timeliness of logistics, customer experience and even the reputation of the store. The following procurement matters, every detail may determine the success or failure of the business.
Demand planning before procurement is the first step. Sellers need to accurately predict the inventory quantity by combining the sales data of their stores, market trends and promotion plans. If too much is purchased, it will lead to inventory overstock, occupying funds and storage costs. Insufficient purchasing may lead to stockouts and missed sales opportunities.
It is recommended to track the sales cycle and seasonal fluctuations of goods through data analysis tools. For instance, stock up 45 days in advance before holidays to avoid the risk of logistics delays in last-minute purchases. At the same time, a safety stock of 10% to 15% should be reserved to deal with sudden order growth.
- The choice of procurement channels directly affects the quality and cost of goods. Factory direct procurement is suitable for best-selling products with stable sales. It can offer lower wholesale prices, but the minimum order quantity is higher, making it suitable for sellers with a certain scale. Wholesale markets offer strong purchasing flexibility and allow for small-scale trial sales. However, it is necessary to carefully identify the qualifications of suppliers to avoid obtaining inferior goods.
For cross-border independent station sellers, it is also advisable to consider cooperating with professional companies, such as through freight forwarding service platforms like Smartdropping that handle procurement on their behalf. - Quality control is the core of the procurement process. Even long-term cooperative suppliers need to establish a strict inspection process. After receiving the goods, samples should be randomly selected to check whether the appearance, function, packaging, etc. meet the sales standards. Special attention should be paid to whether the goods have infringing labels or do not comply with the regulatory requirements of the target market (such as the CE certification of the European Union and the FDA standards of the United States). It is suggested that the quality standards and return and exchange terms be clearly stipulated in the procurement contract. Once any problems are found, accountability can be pursued in a timely manner. For customized products, samples should be requested in advance for confirmation to avoid deviations after mass production.
- Cost control should take into account both “explicit costs” and “implicit costs”. Explicit costs include unit prices of goods, freight charges, taxes and fees, etc., which can be reduced through multi-channel price comparison and centralized procurement. Hidden costs are often overlooked, such as the loss of stockouts caused by suppliers’ delayed shipments and the increase in customer return rates due to inferior products. Therefore, choosing a supplier with transparent quotations and punctual delivery is far more important than simply pursuing low prices. In addition, rationally planning the frequency of procurement and reducing the number of transportation trips can also effectively lower logistics costs.
- Inventory management is closely linked with procurement. It is recommended to adopt the “dynamic replenishment” mode. The inventory of goods can be monitored in real time through the inventory management system. When the inventory drops below the warning line, a purchasing reminder will be automatically triggered. For goods with a low turnover rate, the purchase volume can be reduced to avoid occupying warehouse space. For best-selling products, priority supply agreements need to be signed with suppliers to ensure stable inventory. At the same time, it is necessary to pay attention to the matching of the procurement cycle and the logistics timeliness. For example, when purchasing from China and shipping to the European and American markets, 30 to 40 days of transportation time should be reserved for sea transportation, while 7 to 15 days for air transportation should be reserved to avoid the delay of procurement causing the delivery to be blocked.
Finally, establishing a supplier evaluation system can ensure the long-term stability of the procurement chain. Regularly score suppliers from dimensions such as product quality, delivery speed, and after-sales response, eliminate partners with poor cooperation, and establish long-term cooperative relationships with high-quality suppliers. In the event of unexpected situations (such as rising raw material prices or disrupted logistics), multi-channel supplier resources can play an emergency buffering role, ensuring that the procurement process is not disconnected.
Only by paying attention to every detail in the procurement process can a solid foundation be laid for the subsequent shipping process, enabling independent station sellers to stand out in the fierce market competition with a stable supply chain.
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