Supply Chain Challenges for Online Stores

Recently with the economic downturn, I have turned to my entrepreneurial roots, by starting an online business to create another income stream alongside my current business. My thinking has always been to develop business opportunities that had few limits or challenges. I have been able to manufacture, and market high end products at the wholesale level for over 20 years, carrying no inventory, contracting companies to produce products utilizing my specs and requirements to set the standard for quality. I also wanted no limits placed upon my ability to sell. I wanted all sales to be local; no matter I was living or operating my sales office. This model has worked well.

As I have jumped into this new venture, starting an online store Wutzzup.com, I have discovered some hindrances to accomplishing my goals. Primarily, all businesses are dependent on a long chain of suppliers and service providers. In a traditional business, these suppliers are structured companies that can actually be seen, touched and visited. I can travel to meet the operations manager about my specs or a certain project, assured that my concerns are heard and important.

In the online realm, what I have discovered is a secretive world of providers and suppliers who wish to remain hidden and unidentified. For instance, I purchased a store template for Wutzzup.com with sports and consumer electronics products I chose from suppliers I reviewed. The web provider, I discovered later, claims to have an office in Toronto, but its technicians are all over the world. I have had online communications with reps from Russia, China, England, and more. The Communication barrier was a real problem as well. What happens, when push comes to shove, they have your money, and there is no-one really out there in cyberspace to actually speak too about concerns or customer needs I may have had. Phone numbers were routed to virtual offices that never actually access a live person, always redirecting you to leave a detailed message.

These long chains of connected companies serving your business are critical to your survival. It only takes on in the chain to cause damage throughout the chain. I can complete with great accuracy and professionalism, my part of the process to complete a sales, while one supplier drops the ball, tarnishing my business and reputation. Who we choose to partner with matters. I must admit the above company has been responsive to my needs, and I'm overall pleased with the service I have received. It can work. On the flip side, this company could easily choose not to serve me and walk away from any commitments to complete the services I purchased. It would become impossible to find anyone in the company or anyone who even cared if I had been wronged.

The internet is a wonderful thing, but can also lead to incredible corruption. Ask for real references. Do your due diligence in finding out about these companies that have a great deal of influence over your success or failure.