How to effectively control the quantity of e-commerce purchases to reduce costs and risks

In the e-commerce industry, reasonable control of purchase quantities is an important strategy to reduce purchase costs. Procurement quantity not only involves cost calculation, but also requires cross-department coordination and advance communication with purchasing personnel and suppliers. This kind of cooperation can effectively reduce procurement costs and thereby maximize profits.

Take Xiao Zhao (the owner of a Taobao store) as an example. She was solely responsible for purchasing, and when negotiating with cosmetics brands, she obtained ultra-low prices, so she purchased 2,000 lipsticks at one time. Although the brand promised fast delivery, the lipstick section of the warehouse was full upon arrival. In order to solve the inventory problem, Xiao Zhao organized a promotional event, which was a great success and formed a long-term cooperative relationship with the brand.

Xiao Zhao agreed in the contract to purchase 2,000 lipsticks on the 20th of every month. However, after the first month, even though it was the “6.18 Shopping Festival”, the lipstick was seriously unsaleable, with less than 200 units sold. The next month’s goods still have to be delivered as scheduled, which means the warehouse will be even more crowded. Therefore, Xiao Zhao negotiated with the person in charge of the brand, hoping to reduce the purchase quantity, but the other party emphasized that this was not in compliance with the contract requirements. After negotiation, they finally agreed to send 1,000 less lipsticks each time, but increased the price by 20%. Although Xiao Zhao reduced the purchase quantity, his initial impulsive decision-making still led to inventory backlog.

This case highlights the complexity of procurement. Purchasing too many quantities will lead to warehouse backlogs and increased costs, while too few quantities may lead to stockouts, affecting sales and the stability of the supply chain. Xiao Zhao should reflect on his decision-making in the purchasing process. For example, when cooperating with a new brand for the first time, he should not blindly purchase goods based on low prices. Additionally, relying on a single supplier can increase risk if a product becomes unsaleable. Therefore, e-commerce store owners need to consider more comprehensively when making purchases, including formulating emergency warning plans to ensure that they can respond calmly when faced with emergencies.

In short, e-commerce companies need to ensure a professional procurement team in terms of staffing to avoid rising procurement costs due to unprofessional management. By accumulating practical experience and conducting comprehensive analysis of purchase quantities, risks can be effectively reduced and profitability improved.