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HOW DO YOU DEAL WITH OUT OF STOCK PROBLEM IN AN E-COMMERCE MARKETPLACE?

10/20/2019

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Out of Stock Situations in E-Commerce Marketplaces
Out of Stock Situations in E-Commerce Marketplaces
The below is the analysis of the out of stock issue for one of the most significant e-commerce marketplace players (let’s call it HomeDotCom. No association with home.com in any way). The actual name of the company is not shown due to confidentiality reasons.
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HomeDotCom is one of the major e-commerce players in the US. It is, by nature, a marketplace, and prefers not to buy inventory for cash. It works with the suppliers in 2 ways:
a) keeps their inventory at its own warehouses and ships it out when the order comes in, or b) drop-ships from the supplier’s warehouse. We will only focus on Outdoor Décor category of products. Also, the suppliers (in most cases, these are manufacturers of products) are not very sophisticated market players, often don’t have logistical capabilities or strong IT infrastructure. 

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E-COMMERCE MARKETPLACE BUSINESS MODEL: BENEFITS AND CHALLENGES

2/25/2018

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Online e-commerce marketplace business model
Online marketplace business model: benefits and challenges
E-commerce marketplace concept is not a new phenomenon. Amazon, Walmart, eBay, Jet, Wayfair, Farfetch, Overstock, Groupon and many others are good examples of marketplace business models. These companies built multi-billion dollar businesses by connecting third-party sellers and customers. Several years ago I was involved in a startup that developed e-commerce marketplace software and we partnered with one of the best-known online marketplace platforms globally. The company was based in New York and, while working on this business, we got a good understanding of the marketplace business model benefits and challenges that need to be addressed, so that the business could function efficiently and profitably. 

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SUPPLY CHAIN OPTIMIZATION MUST RESPOND TO NEW MARKET REALITIES

2/17/2018

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Supply chain management
Supply chains must be optimized to achieve efficiency
Supply chain is a very comprehensive and complex subject to talk about. It’s the backbone of any business, and especially – retail or e-commerce business. We live in times, when any company’s operations and business processes must be completely redesigned.

The Millenial generation is the largest generation in the US history (92 million people) and their habits will shape the future of retail and e-commerce. One of the most common characteristics of the Millenial generation has been cited as desire for instant access to products and services. In the world, where Amazon and other companies strive to meet these new customer requirements and deliver the products within one (and, in some cases, within the same) day, there is absolutely no doubt that companies’ supply chains must fundamentally change.

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    Alex Boch

    Life Explorer and Startup Consultant. Moving quickly towards total happiness. :)


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