Coronavirus Implications on E-Commerce with Burak Yolga
Firing The Man · with Burak Yolga · March 19, 2020 · 56 min
Summary
The COVID-19 pandemic significantly disrupted global supply chains in early 2020, particularly impacting e-commerce sellers reliant on Chinese manufacturing. This episode offers a timely discussion on how these disruptions created critical cash flow challenges for suppliers and presented both obstacles and opportunities for e-commerce businesses to adapt their sourcing and logistics strategies. It emphasizes the need for flexible negotiation and strategic inventory management during periods of global instability.
Key takeaways
Negotiate favorable payment terms with suppliers, such as lower deposits (e.g., 10%) and payment upon shipment, leveraging suppliers' need for cash flow during crises.
Explore placing larger orders for better pricing but arrange with suppliers to store excess inventory in their Chinese warehouses or with a freight forwarder to avoid high upfront costs and storage fees (e.g., Amazon FBA long-term storage fees).
Be aware that air freight prices and availability can be highly volatile during crises due to canceled passenger flights, which often carry a significant portion of air cargo. Ocean freight may offer more stability.
Recognize that supply chain issues are interconnected globally; even if a product isn't directly from China, its raw materials or manufacturing equipment likely are, creating ripple effects.
Proactively secure inventory and negotiate prices when suppliers are motivated by cash flow shortages, as this can lock in favorable terms for future stock.
BONUS Episode #016 On today’s episode, we are joined by Burak Yolga, a specialist in international logistics, product sourcing, and navigating the complicated global marketplace – making him the ideal guest to talk about the implications of the Caronavirus on e-commerce sellers. We will also be talking about recent import tariffs and other critical information pertaining to the recent volatile international economy. A little background on our guest – Burak is originally from Ista...
What does this episode say about supply chain & operations?
Negotiate favorable payment terms with suppliers, such as lower deposits (e.g., 10%) and payment upon shipment, leveraging suppliers' need for cash flow during crises.
What does this episode say about amazon & marketplaces?
Explore placing larger orders for better pricing but arrange with suppliers to store excess inventory in their Chinese warehouses or with a freight forwarder to avoid high upfront costs and storage fees (e.g., Amazon FBA long-term storage fees).
What does this episode say about finance & fundraising?
Be aware that air freight prices and availability can be highly volatile during crises due to canceled passenger flights, which often carry a significant portion of air cargo. Ocean freight may offer more stability.
What does this episode say about founder & leadership?
Recognize that supply chain issues are interconnected globally; even if a product isn't directly from China, its raw materials or manufacturing equipment likely are, creating ripple effects.
What does this episode say about supply chain & operations?
Proactively secure inventory and negotiate prices when suppliers are motivated by cash flow shortages, as this can lock in favorable terms for future stock.
