The purchase quantity will have an impact on the purchase cost. It usually requires joint discussion among departments and advance agreement with purchasers and suppliers. If the purchase quantity is well controlled, it will effectively reduce the purchase cost and maximize profits.
Xiao Zhao is the owner of a Taobao online store. She assigned other tasks of the online store to relevant personnel and took full responsibility for the purchase work. Before, Xiao Zhao negotiated with a cosmetics brand. During the negotiation, the person in charge of the other party said that he could give her an ultra-low price, so she purchased 2,000 lipsticks at one time
The person in charge of the brand was very straightforward and promised that the goods would arrive in 3 days. But after the goods arrived, the lipstick area of the warehouse was full. So Xiao Zhao asked the sales team to quickly launch promotional activities. Because of the low purchase cost and strong promotion, she made a lot of money and decided to cooperate with the brand for a long time.
Xiao Zhao signed a contract with the brand. The contract stipulates that Xiao Zhao purchases lipsticks on the 20th of each month, 2,000 each time, for 3 consecutive months, but cannot enjoy the previous ultra-low prices. Because it was the “6.18 Shopping Festival” at that time, Xiao Zhao was eager to purchase and sell goods, so he agreed without thinking.
At the end of the first month, although it was during the “6.18 Shopping Festival”, the brand’s lipsticks were still seriously unsalable, with less than 200 sold, and the goods for the second month had to be delivered as scheduled. If this trend continues, the warehouse will definitely be overcrowded. So Xiao Zhao negotiated with the person in charge to reduce the purchase quantity of lipsticks and change it to 500 each time. But the person in charge said that this was not in line with the previous contract agreement and was absolutely not allowed.
After Xiao Zhao’s repeated negotiations, the other party agreed to send 1,000 fewer lipsticks each time, but the price would be 20% higher than before. Xiao Zhao agreed and revised the contract.
By the middle of the second month, there were still a lot of lipsticks left in the warehouse. According to this sales progress, there will definitely be a lot of lipsticks in stock by the end of the third month. However, fortunately, it is much less than previously expected. Although Xiao Zhao recovered some losses through negotiations with the person in charge of the brand, he still had a lot of lipsticks in stock because of his impulsiveness.
In the above case, a small lipstick stumped Xiao Zhao, which also proves that the work of purchasing seems simple, but in fact it is a big deal. If the purchase quantity is too large and the product cannot be sold, it will be backlogged in the warehouse, increasing costs. If the purchase quantity is too small, it will lead to out-of-stock, affecting the supply chain and sales.
In the above incident, Xiao Zhao, as a store owner, should reflect on many issues. For example, if you purchase a large quantity of goods from a brand that you cooperate with for the first time, even if the other party’s reputation and quality are guaranteed, it may not be a hot commodity in the market. Moreover, Xiao Zhao purchased lipstick because it was during the “6.18 Shopping Festival” and the price was relatively low. But Xiao Zhao did not expect that when the lipstick was unsalable, she would also fall into a passive situation.
In addition, Xiao Zhao locked the supplier to one brand. Once the lipstick was unsalable, it would not only be backlogged in the warehouse, but also occupy the storage area of other products. At this time, Xiao Zhao should have thought that if the purchase was not smooth, it would be difficult to fundamentally solve the problem by simply negotiating with the supplier. So she should consider it more comprehensively to prepare for a rainy day.
Tips
Purchase quantity is an important factor affecting purchase costs. If an e-commerce company lets unprofessional purchasers take charge of purchases, it is likely to lead to an increase in purchase costs. E-commerce companies need to slowly accumulate experience from practice, and at the same time, think comprehensively during the purchase process, formulate emergency warning plans, and comprehensively judge the purchase quantity.