What is it that will allow the logistics of an ecommerce business to run perfectly smoothly, without any pain points, delays, or headache?
Predictability.
This is fundamentally what one should seek to achieve with logistics.
I have made many, many, many costly mistakes in regards to ecommerce logistics. And these mistakes have shaped how I think about the logistical side of my businesses. Each mistake revealed an assumption I had that was not in line with reality, and therefore caused lost revenue and wasted time.
Fundamentally, predictability comes from:
- Reliable partners (suppliers, freight forwarders, 3PL partners, etc.)
- Clear and quick communication with those partners
- Clear data to help manage forecasting
If any of these is not met, problems will arise. I'll explore these in more detail below. This is how I think about sourcing, logistics, planning, and shipping.
Product
If a product isn't clearly specified, the factory will fill in the gaps. Not maliciously — just practically. They optimize for speed and efficiency, but it means two batches of the "same" product can arrive looking and feeling different if your product specs are not clear.
Therefore, we must first define our product in a product spec sheet.
A product should exist, in full detail, before any supplier conversation starts. That means a complete specification: materials, measurements, finishes, colors, packaging, labeling.
A tech pack / product spec sheet is the simplest way to hold all of that in one place. It acts as a fixed source of truth to base all supplier conversations on.
Suppliers
Initial outreach is mostly filtering — responsiveness, clarity, familiarity with the product type. From there, the process becomes figuring out the reliability of your potential partner. You want to see:
- How quickly, proactively, and clearly they communicate
- How long they've been active
- ISO or BSCI documents
- Export countries
- How closely they follow instructions
- How precise their samples are
I've found that the best supplier partners are open to getting on a video call and walking you through their facilities and showing you their product. It is this transparency that I value.
You'll want to find out:
- Unit costs per SKU
- Minimum order quantity
- Lead times
- Packaging processes
- Payment terms
In regards to samples — sampling is not solely about the initial sample itself, but also about finding the right supplier partner who will work through any issues with you clearly and quickly.
Once you've worked through any sampling issues and you're at volume, get a manufacturing agreement signed.
A supplier relationship, once established, tends to compound. Over time, it becomes less transactional and more reliable and predictable.
Shipping
There's basically two options: air and sea.
Air is fast and expensive. Sea is slower and significantly cheaper. When ordering inventory, I generally utilize both depending on the phase of operations.
For initial samples, and perhaps even small initial batch orders for testing products, I'll use air. The bulk of inventory is shipped via freight.
Production can take up to 30 days, sea shipments can take around 35 days door to door, air is about 10 days. These numbers are key in inventory planning. Start planning your next shipment the moment your current one lands.
Freight forwarders sit in the middle of this process, and a good one is worth its weight in gold, simply because they handle all the highly complex stuff for you — coordinating between factories, ports, customs, warehouses, timezones, and laws. A reliable one reduces uncertainty and helps you navigate any and all problems you might face.
Before anything ships, inspection is the last control point. Getting a QC agent is absolutely worth the cost, and can save you from thousands of dollars of unusable product.