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Top 5 Logistics Predictions to Prepare for 2022 Online Sales | Supply Chain Management Challenge & Inventory Cost Solution

When merchants are making efforts to lower the risk of the disruptions caused by pandemics, it always comes at a cost of paying more for the supply chain. Moreover, inflation also becomes an obstacle to handling their spending and estimated profit.

The pandemic has completely changed people’s shopping habits and the global eCommerce business didn’t stop growing in 2021. In terms of the data from Mastercard, US eCommerce sales got another 11% increase from 2020 to 2021.

Not only the US, according to market research firm PYMNTS, mobile commerce in cross-border trade in Europe is expected to have a 70% increase over the next five years, the Mexican eCommerce market size is also going to be seen growth by 100% in 2022 which is predicted by AMVO.

Online sales are streaming in, but the supply chain chaos in 2021 did bring merchants over the world more headache and loss throughout the whole year, and the impact still continues by now.

Shipping & storage costs go up overwhelmingly but the estimated processing time is longer than ever. From port congestion to labor shortage, from Omicron to natural disasters. Nearly 7,700 flight delays and more than 2,500 flight cancellations have been recorded worldwide during the Christmas holiday alone.

When will supply chain bottlenecks be solved? What are we facing this year? Here’s the list of 5 main aspects to watch in 2022.

1. Keeping higher levels of inventory tends to be more and more merchants’ choice to lower their cost and risk effectively.

When merchants are making efforts to lower the risk of the disruptions caused by pandemics, it always comes at a cost of paying more for the supply chain. Moreover, inflation also becomes an obstacle to handling their spending and estimated profit.

To find a balance between shorter reaction time and higher reliability, more and more sellers tend to choose to prestock and keep higher levels of inventory in the nearest local warehouses.

For dropshippers, this method goes against their business model and brings them more pressure on the cost.

To reduce their stress on the inventory cost and shorten the processing time, CJ has launched a new option to let sellers pay only a 30% deposit and stock their inventory beforehand.

2. Ocean freight rates will stabilize but still be higher than it was 2 years before.

Learned the lesson in 2021, there will be more spots on ships, more containers, and more ships on the sea freight market.

A 2-3% increase in export by containers is expected to occur. Besides, the global fleet will also jump 1.5% with more new players showing up in 2022.

2022 will see some easing in the ocean freight price thanks to the new supply, the rates are estimated to drop by about 30% but still can not go back to the level it was 2 years before.

Source from Forbes

3. Airfreight will be in stronger demand but the labor shortages may lead to slower processing.

With the global eCommerce business growing rapidly and restocking from merchants, as an alternative transportation mode to sea freight, the demand for air cargo will continue to rise by 13.2% in 2022 according to the forecast by IATA.

However, the air freight market is going to face new challenges like labor shortage and imbalance between growing demand and capacity that has not recovered completely.

4. Carriers control the prices, improving flexibility and shortening reaction time are keys to growth.

With the growing volumes of eCommerce sales, demand for order fulfillment and delivery services are hence increasing rapidly.

Obviously, even though regional delivery carriers have tried their best to expand capacity to meet the need, they are reaching the overloaded borderline.

Carries will continue to hold the pricing, and for shippers with big volumes, there may still be not so many options for them to choose from.

Big carriers like USPS have made the declaration that they will bring a more enhanced local delivery chain in 2022, but they’re still many challenges awaiting that people are afraid to be disheartened like capacity crunches, more labor shortages, natural disasters, traffic, and parking, etc.

And all of these uncertainties will make it more difficult for shippers to estimate volume during peak seasons.

For customers nowadays, especially millennials, their main request is undoubtedly faster and safer delivery. With that said, flexibility and reaction time are vital for carriers to grow and provide better services.

Source from technavio

5. Supply chain disruptions will be reduced but could not vanish away in the short term.

Unexpected changes hit people so fast, however, it seems to take us forever to recover from the impacts left.

Some experts have given their estimated time range to 2023, yet people’s confidence seems not to be ready even though we have become more used to living in “new normal”.

Every moment from now on is so precious for sellers worldwide to review their supply chain management and adjust business strategies timely.

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18 hours ago

CjDropshipping.com

Dropshipping Business Earthquake, after one of the dropshipping tools Shopmaster shut down. Oberlo is shutting down too. Dropshippers have to find alternatives.

cjdropship.com/topics/oberlo-is-shutting-down-what-are-the-best-alternatives-to-oberlo/

Oberlo Is Shutting Down – What Are the Best Alternatives to Oberlo?
CJ Dropshipping
May 17, 2022
Oberlo Is Shutting Down – What Are the Best Alternatives to Oberlo?
What should dropshippers do?
What are the best Oberlo alternatives?
1. DSers
2. CJ Dropshipping
3. NicheDropshipping
4. Spocket
5. Printify
Today we got breaking news for dropshippers. Oberlo, one of the most well-known apps on Shopify will officially close its entry on June 15th, 2022.

Oberlo has been a successful dropshipping app. It provides a convenient method for store owners to fulfill orders with AliExpress.

Among all the various dropshipping apps on the market, Orberlo has got a great reputation in the community. It has helped countless people become successful entrepreneurs.

However, the sites will officially shut down on June 15th. For the people who are currently on a paid Oberlo subscription plan, they can cancel it now and get a refund.

What should dropshippers do?
There are many possibilities for Oberlo to make such a decision. And shutting down the Oberlo app doesn’t mean the Oberlo company is going to shut down.

We will talk about this topic in our latest articles and share some insights about the dropshipping industry in the short future.

For now, Oberlo will shut down soon. If you are one of the entrepreneurs who have been using Oberlo, you need to think about what to do next and find a solution for the incoming event as soon as possible.

In this article, we will present some best dropshipping sites as alternatives for Oberlo. If you wish to take this challenge as an opportunity with a new service provider, this is the chance.

If you are not using Oberlo, the event may also lead you to some deep thoughts about the industry. In case your current supplier or service provider got the same situation in the future, preparing in advance is always a good choice.

What are the best Oberlo alternatives?
1. DSers
On the official Oberlo FAQ page, Oberlo has suggested the users migrate to a trusted Shopify partner, DSers.

DSers is a dropshipping app that provides multistore management. You can use it to manage most dropshipping platforms such as Shopify, Wix, and Woocommerce.

Just like Oberlo, DSers allows you to sync orders from your store to AliExpress and then fulfill the orders in a more convenient way.

Also, you can use DSers to source the products on AliExpress. Instead of sourcing products on your own, using DSers will save you a lot of time to locate the specific product you want among the massive category.

In addition, DSers is also available for data transferring from Oberlo. If you wish to migrate your Oberlo account data to DSers, you can do it directly on the Oberlo admin home page.

What makes DSers unique?
Good Chrome extension
Multiple store order manage
Optimizing sourcing time
Allow data migration from Oberlo
Good chrome extension
Still, DSers is not the best choice if you wish to save your budget and justify the cost. This is because if you want to fully use the functions of DSers to manage more than 3 stores, you will need to subscribe to the paid plan first.

2. CJ Dropshipping
CJ Dropshipping is a one-stop dropshipping platform that provides a complete Dropshipping service.

The service of CJ dropshipping covers sourcing, shipping, order management and even filming ad videos.

CJ Dropshipping has both features of Oberlo and AliExpress, you can find products that come from various international suppliers at cheap prices on the site. By using this sourcing feature, you can easily find better suppliers different from AliExpress.

If you need some information about the recent trendy products or best-selling products, you can also explore the trendy products recommendation columns on the CJ Dropshipping site. Every season there will be brand new innovative products for you to choose from.

Besides, the overall shipping time of CJ Dropshipping is faster than AliExpress suppliers. This is because many suppliers on CJ Dropshipping got their own international warehouses.

Also, if your business volume is big, you can actually have your own private inventory in CJ warehouses. Then your orders can be shipped out within 1 to 2 days.

If you are not only looking for a store integration service provider but also suppliers with better prices, CJ Dropshipping will be a good choice for you. Unlike other paid-to-use platforms, most functions on CJ Dropshipping are completely free to use.

What makes CJ Dropshipping unique?
Free sourcing for better suppliers
Trendy products recommendation
Faster shipping time than AliExpress
International warehouses
Bulk order management
Various extended services (POD, Photography)
3. NicheDropshipping
Niche dropshipping is a site that combines sourcing agents and dropshipping suppliers. You can find various product collections on their site just like searching for products on AliExpress.

When you want to search for any products with better quality or price, you can directly consult the agents of NicheDropshipping to find the product you want.

If some products got higher prices than you expected, you can also negotiate with the agents. Agents of Niche dropship are also professional in getting the best quotation from the suppliers.

Besides, Niche Dropshipping got international warehouses in both China and the USA. So if your market is in the US and you wish to optimize the processing time of the products, you can also choose to bulk purchase the products to stock in their USA warehouse. Once products are stocked in the USA, shipping and processing time can be amazingly fast.

In addition, the photography service is available if you wish to see the actual quality of the products. You can also request photos or videos for advertisement usage. But keep in mind this service is paid, the cost will depend on your request content.

What makes NicheDropshipping unique?
Free product sourcing quote
China & USA warehouses
Automated dropshipping service
Photography service
4. Spocket
Spocket is a high-rated dropshipping platform that allows you to connect with suppliers all over the world.

Most of the suppliers on Spocket are from the USA & the EU. This special feature makes it an excellent tool to search for products within the US and the EU.

The best thing about domestic suppliers is the shipping time. If you buy products from domestic suppliers, shipping will only need takes 2-5 days to deliver. This is why international warehouses are also recommended by other dropshipping platforms

Still, the limitation of domestic suppliers is the product variety. If your wish to expand your business, you will need to explore more international supplier platforms.

If your target market is in the US or in the EU, Spocket is a great choice for you to find the supplier you prefer to work with.

What makes Spocket unique?
Available US & EU suppliers
High-quality products with samples
Winning products recommendation
Support multiple platforms (Shopify, Woocommerce, Wix)
5. Printify
POD (Print on demand) is a special major category among all different kinds of products. When we talk about POD products, Printify must be the top to mention. It is also a dropshipping site that specialized in integrating POD suppliers.

On Printify, you can source a wide range of customizable products including hoodies, accessories, T-shirts, and so on.

Wish to see the effect picture? You can simply upload the picture to the platform then the editor will automatically generate an example picture.

Still, not all the products are customizable and some products are only customizable if you have a large order quantity. Many suppliers require MOQ (minimum order quantity) to provide customization services. And of course, it’s not free.

So if you are running a general store with various product categories, Printify may not be the best option.

If you are looking for customizable products or wish to brand your products with store logos, you check out Printify to make your own products.

What makes Printify unique?
Specialized in POD products
Wide range of customizable products collection
No extra charges except product and POD fee
Simple editor for designers
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