E253: Getting a Business Back on Track after Running Out of Stock

The EcomCrew Ecommerce Podcast · with Jason Hsieh · May 31, 2019 · 65 min

Summary

This episode analyzes LakiKid, an ecommerce business that faced a significant setback running out of stock for key products right before Christmas. It explores strategies for diversifying sales channels beyond Amazon, implementing off-platform marketing, and building community to recover momentum. The discussion provides actionable advice for ecommerce operators on navigating supply chain disruptions and reinvigorating sales.

Key takeaways

• Implement robust inventory management to prevent stockouts, especially during critical sales periods; consider safety stock and multiple supplier relationships.
• Diversify sales channels beyond a single marketplace; invest in owned platforms like Shopify to reduce reliance and gain more control.
• Leverage content marketing and community engagement (e.g., blogging, live social media) to build brand loyalty and drive traffic independently of paid channels.
• Develop a clear strategy for re-engaging customers and rebuilding sales momentum post-disruption, focusing on direct communication and exclusive offers.
• Utilize personal brand storytelling to connect with customers on a deeper level and differentiate products in niche markets.

Themes

Topics covered

Episode description

Many successful ecommerce businesses are born out of necessity. And some of the most successful ecommerce entrepreneurs are selling products that they're truly passionate about. A Business Born of Necessity Eight years ago, Jason Hsieh's son Keanu was diagnosed with autism. Living in Japan at the time, Jason struggled to find support services and products for him. So the family moved to Seattle. In 2017, Jason himself would start developing products that would help children diagnosed with autism and ADHD. Today, his company LakiKid sells three physical product lines - each addressing different areas where kids with autism and ADHD can benefit from the most. The Struggle to Get Back on Track Sales have been going fairly well for LakiKid until the end of 2018. A supply chain issue caused two of its best-selling SKUs to run out of stock right before Christmas. From averaging close to $50,000 in monthly sales, the business has been struggling to get back on track. At present, LakiKid is over 90 percent Amazon but Jason has been exploring marketing avenues off of the platform to gain back the momentum that was lost. These efforts include a Shopify store, a blog, and hosting a weekly live talk show on Facebook. Listen as I navigate this niche business with this passionate dad and entrepreneur and offer insights on how LakiKid can get the groove back, get more exposure and have those sales figures pick up. Under the Hood is a segment where we do an hour-long coaching call with one of our listeners. We take a look at their businesses, provide honest feedback, offer our best business advice, and answer whatever questions they have. In exchange for the free coaching, we will turn the call into a podcast episode so that our community can benefit as well. It's a win-win!</p

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Frequently asked about this episode

What does this episode say about supply chain & operations?

Implement robust inventory management to prevent stockouts, especially during critical sales periods; consider safety stock and multiple supplier relationships.

What does this episode say about amazon & marketplaces?

Diversify sales channels beyond a single marketplace; invest in owned platforms like Shopify to reduce reliance and gain more control.

What does this episode say about shopify & ecommerce platforms?

Leverage content marketing and community engagement (e.g., blogging, live social media) to build brand loyalty and drive traffic independently of paid channels.

What does this episode say about brand & content?

Develop a clear strategy for re-engaging customers and rebuilding sales momentum post-disruption, focusing on direct communication and exclusive offers.

What does this episode say about supply chain & operations?

Utilize personal brand storytelling to connect with customers on a deeper level and differentiate products in niche markets.

Listen

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