How Ecommerce Startups Can Navigate the Supply Chain Logjam Consumer expectations of speedy delivery and an unprecedented supply chain backlog have come into conflict. Which will give first?
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The rise of global trade and ease of access to global vendors, manufacturers and producers has led to an unprecedented lowering of the barrier to entry for ecommerce. It's easier than ever to source product, make deals and have product shipped not only in bulk, but dropshipped right to consumers without ever leaving your home.
But that ease of access to the marketplace, new delivery startups and of course a behemoth named Amazon have led to a growth of consumer expectations. Sixteen years ago, when Amazon Prime was first introduced, free two-day shipping was novel and exciting. Now, it has become expected — with same-day delivery even beginning to fully penetrate the market, driving consumer-service demand even higher.
With the worst of the pandemic (hopefully) behind us, we are beginning to see cracks in the system that this level of demand and competition for speed have created. Known as the Bullwhip Effect, the idea is that when a small but energetic ripple is created at the leading edge of something, that ripple quickly grows into a giant wave that now has control of the entire object and has spread, creating large consequences.