Supply chain management is the backbone of any successful eCommerce business.
However, managing it effectively—especially at scale—is no easy task. From inventory shortages to fulfillment delays, online retailers face a variety of challenges that can impact their profitability and customer satisfaction.
For businesses selling a large number of products across multiple sales channels, like those using Freestyle Software’s Multichannel Order Manager (M.O.M.), streamlining operations is a priority. Understanding these common supply chain issues can help eCommerce businesses navigate obstacles and maintain efficiency.
1. Inventory Management Complexity
When selling across multiple platforms—Amazon, eBay, Shopify, and more—keeping track of inventory in real time becomes a major challenge. Stockouts lead to lost sales, while overstocking ties up capital and increases storage costs. Many eCommerce businesses struggle with:
- Lack of real-time inventory tracking
- Poor demand forecasting
- Difficulty managing multiple warehouses
Solution:
A centralized order management system (OMS) like M.O.M. can automate inventory tracking across channels, providing real-time stock visibility and reducing manual errors.
2. Order Fulfillment and Shipping Delays
Today’s customers expect fast, accurate, and affordable shipping.
However, fulfillment issues—such as warehouse inefficiencies, carrier delays, and high shipping costs—can harm customer satisfaction. Key challenges include:
- Delayed processing times due to high order volumes
- Complexities in shipping carrier selection
- Last-mile delivery inefficiencies
Solution:
Automation and strategic carrier partnerships can optimize fulfillment. With M.O.M., businesses can integrate with multiple shipping providers to get the best rates and improve speed.
3. Supply Chain Disruptions and Supplier Reliability
Global supply chain disruptions—caused by pandemics, natural disasters, or geopolitical events—can lead to product shortages and delayed restocking. Relying on a single supplier also poses risks.
Solution:
- Diversify suppliers to avoid dependency on one source.
- Use predictive analytics to anticipate disruptions.
- Implement automated supplier communication through an OMS like M.O.M..
4. Rising Logistics and Operational Costs
Shipping rates, warehouse rents, and labor costs are steadily increasing. eCommerce businesses must find ways to reduce overhead without sacrificing quality.
Solution:
- Optimize warehouse locations to reduce shipping distances.
- Automate fulfillment workflows to improve efficiency.
- Use bulk shipping discounts available through M.O.M.’s integrated shipping solutions.
5. Managing Returns and Reverse Logistics
High return rates, especially in fashion and electronics, can drain resources. Without an efficient return process, businesses risk losing customers.
Solution:
- Offer prepaid return labels for seamless returns.
- Automate return processing through an OMS like M.O.M..
- Analyze return data to identify product quality issues and reduce future returns.
Final Thoughts
eCommerce businesses need agile, tech-driven solutions to overcome these supply chain challenges. Freestyle Software’s M.O.M. provides the tools to optimize inventory, streamline fulfillment, and cut costs—helping online retailers scale efficiently.
Want to simplify your order management? Schedule a demo of M.O.M. today.
