Which is The Best Option to Start an Online Store?

Are you confused whether to connect with a single or multiple suppliers? Read the following blog to clear all your doubts. Maintaining Supplier Relationship Dealing with multiple suppliers is far more difficult as compared to a single supplier. Say you have started an Electronic components store. Now building and maintaining supplier relationships is critical to grow your ecommerce business. However, maintaining a healthy relationship with a single supplier is easier as compared to multiple suppliers. Lacklustre relationships are pretty common when connected to multiple suppliers. You have to deal with competition between suppliers, which can take a toll on your relationships. Lesser order volume is another aspect of multiple supplier strategy. You usually do not place your orders from just one supplier. Getting lower order volumes can frustrate the suppliers to no end. This will automatically translate into lesser bargaining power. Say you Start online IT hardware store. Now with multiple supplier strategy, suppliers would be least interested in providing IT equipment at a discount price. Handling Administrative Tasks Also, your administrative tasks and costs are minimal when you are dealing with a single supplier. On the other hand, the overhead cost associated with using multiple suppliers is significant. For instance, each supplier will have a different invoice. Handling different invoices and keeping track of accounts can be tedious and time consuming. Your responsibility will increase manifold when working with multiple suppliers. For instance, the resources spent on managing multiple suppliers can increase your expenses. Your team will be spending more time on administrative tasks rather than on core business operations. Sync Inventory Keeping your stock in sync with multiple suppliers can be a challenge. The inventory levels on your store should match with that of your suppliers. If this is not possible, it can lead to under stocking or over stocking. There has to be a mechanism that allows you to easily view current inventory levels from all connected suppliers. This is not easy. On the other hand, if you are connected to just one supplier, it is much simpler to get access to up-to-date inventory levels. You have to use appropriate software to upload and sync inventory with that single supplier. Stock Availability Single supplier strategy means you will be completely dependent on that supplier for stock availability. If the stock is not available with the supplier, you will have no option but to cancel the order, eventually causing loss of business revenue. On the other hand, stock availability issues will never arise if you are connected to multiple suppliers. So in case the product is not available with one supplier, you can always source it from the other supplier. In other words, you can easily manage supply disruptions if you are connected to multiple suppliers. Competitive Pricing Relying on just one supplier can reduce your chances of getting products at competitive pricing. The supplier may actually sell your products at a higher price. With multiple suppliers, there is intense competition between suppliers. This will compel your suppliers to lower their prices in order to encourage sales. On the whole, putting your eggs in one basket is never a good option. In today’s times, it doesn’t make sense to depend on just one supplier to run your Ecommerce dropshipping business.