Small Businesses Face Inventory Problems After Big Vacation

Small business owners facing supply chain bottlenecks have stocked up ahead of the holiday shopping season, trying to strike the right balance of inventory as they compete with big box retailers.

The global pandemic has led to previous closures in countries like Vietnam, which have long been suppliers of factory-made products and have had problems getting their products to global markets.

While many factories resumed operations several months ago, the backlog remains difficult, with staff, material and supply shortages still ongoing amid shipping bottlenecks.

Businesses have attempted to combat declining inventory levels by purchasing items earlier and betting on a busier shopping season than 2020 because of pent-up demand, rising consumer disposable income and shrinking consumer disposable income. the reopening of physical stores.

Injecting their money into additional inventory was a risky decision, but some small business owners said they couldn’t afford the risk of buying items that didn’t appear in time for the big shopping vacations. such as Black Friday, Cyber ​​Monday and Christmas.

Megan Searfoss, who owns two running stores in Ridgefield and Darien, Connecticut, invested an additional $ 165,000 in November amid concerns that some shoe makers might not be able to meet demand, according to an article. in the New York Times.

It also increased its inventory to 4,100 pairs from its typical amount of 3,000 pairs and secured a new storage facility to avoid any shortages.

Thousands of small businesses, especially retailers, face these hurdles, and many have stocked their inventory just in case.

Larger companies such as Etsy, which is a marketplace for sellers, said more than 50% of its US suppliers buy materials in their own states to avoid supply chain issues.

Etsy is able to avoid “complex supply chains that are vulnerable to single points of failure,” Josh Silverman, CEO of Etsy, said in the New York Times article.

Even retailers who anticipated these challenges and ordered their inventory early still face supply chain issues.

Isabel Amigon, who owns online store Sololi, bought Christmas tree decorations in April but is still waiting for them to arrive due to a piece on them.

She has already deleted some items for fear of not receiving them on time or that buyers have already purchased their holiday decorations.

The global disruption from manufacturing issues to shipping delays will impact many businesses and drive up the prices of various commodities such as lumber.

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