03 Jan 09 China wholesale on the way of E-crisis
Chinawholesale on the way of global E-crisis
The strategic alliance between eBay and NASDAQ-listed Global Sources had been in operation since June 2005 which offered eBay sellers access to many products from China in individual pieces and small lots at what it described as wholesale rates.
So, what happened, was it just the tough economic climate that has caused some tumble in the china wholesale region or were there other factors behind the company’s closure?
China wholesale company feels that the reason for the difficulties Global Sources Direct faced lies in supplying vendors outside of the current credit crunch and subsequent recession.
The issue identified by china wholesale analysis was the difficulty of ensuring product quality under the Global Sources attempted system of ‘virtual inventory’. In the virtual inventory system items listed at the online shop come from the inventories of many different providers.Thus, suppliers manage the actual stock levels of products remotely, not the seller centrally.
According to china wholesale Sally Ge, this approach is popular with sellers because it allows them to expand their online catalogs but has some critical weaknesses in less evolved supplier environments, like the wholesale China manufacturer base.But this virtual inventory are always with customers complaining about high prices, being told they can’t get the items they actually want and receiving faulty or damaged goods.
Pricing can be an issue for users of a wholesale sourcing company that uses virtual inventory, like Global Sources Direct as the company had to go with the price the supplier gave them on the day the item was ordered instead of buying in bulk when prices were low.
Chinese Wholesaler china wholesale developed its business model to overcome those issues.
Firstly, china wholesale has set up an special department, checking the quality of all items before they go onto warehouse shelves.
Secondly, China wholesale’s policy has always been to limit the number of products in the catalog, only selling those products which are particularly high quality and innovative.
Thirdly, products are only advertised for sale if they are actually in stock ready to ship out.
China wholesale Sally Ge predicted that Global Sources would now probably focus on its role as a B2B advertising platform.
