Cash is king? Not anymore! Price increases and shipping delays are across the board. If you get money, you must know how to use it wisely. In this video, I will teach you a few tricks on how to save money on products and shipping costs. Enjoy!
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Welcome back to the GoodLife Warrior channel. I hope you are doing well. Do you get some cash for your eCommerce business? Do you think you’re a cash ace-king? Not in this kind of time. In fact, your cash could be cheaper than your inventory. How so? In this video, I’m going to teach you how to spend your cash smartly and save some money.
For those of you who are new to the Good Life Warrior channel, I welcome you and allow me to introduce myself. My name is Yuping Wang. I manage the worldwide supply chain for a US-based company as their vice president. I have been working in the supply chain field for over 20 years. Teaching sourcing in my own course or through this YouTube channel is just my passion. I want to inspire hot work and excellence in you so you can build a better business and a better life. Everything I teach and share through this channel and in my course is based on my real-life experience. You’re going to get a lot, a lot of value from my course. Feel free to check out the link below, and that is my mastermind course. I’ll be delighted to help you build your business.
Now, let’s back to our topic of the day. If you have cash, how you can spend it smartly and save some money. Normally, cash is king, but not in this kind of time. What kind of time we’re in, my friend? If you are in business, you know what I’m talking about. You have seen the price increases in the past six months. Product price has gone up by 20%, 30%, 50% in some categories, and shipping cost has more than doubled, so that is your cost. Your cost has gone up.
This is what I mean by cash is cheap. Your inventory is actually more valuable than your cash. Four months ago, if you placed an order for $50,000, today, you may have to come up with $60,000 to buy the same amount of product and pay more on shipping. If you’re running your own eCommerce business, let me ask you, do you have a plan or a strategy to use the cash you have and plan your inventory smartly? If you don’t have a plan, you’re fired. I’m just kidding. If I don’t have a plan because I work for a company, I’m fired. You can now be fired because you work for yourself, but seriously, if you have money, how could you use that money wisely?
In the back of your mind, I know what you’re thinking. Is this price increase situation going to continue and for how long? Is the shipping delayed mess going to continue, for how long? If you’re asking these two questions, you are smart. Nobody has a crystal ball in terms of how long this mass material shortage and the labor shortage is going to continue, how long this shipping delay is going to continue, but my personal opinion is it is going to continue.
Here is my reason. I think we need to take two factors into consideration. The first one is COVID case-control. As we speak China, Vietnam, two of the largest manufacturing base, both having COVID cases resurface in certain areas of their country. In Yantian Port, you heard about Yantian Port is Guangdong is one of the largest, best shipping ports. Now, it’s only partially operational because the COVID case breaks out. This means many shipments cannot leave Yantian Port. Many of my shipments have been delayed. So COVID case-control is going to be one of the critical factors in determining if we continue to have raw material shortages, labor shortages that continue to drive price increase, and shipping cost increase.
The second factor is Q4. Isn’t it too early to talk about Q4? Summer just got here. You haven’t even got a chance to put on your swimming suit once. We already talk about Q4. No, not too early for big corporations. Not too early for my company because we’re anticipating extended long delays in shipping time. Therefore, we’re pulling orders ahead. What does it mean to your business? That means your supplier, the factory, is going to have a more backlog in preparing for Q4. This is going to drive more raw material shortage and more price increase.
Taking the two factors that I just mentioned into consideration. If you have some money, say you have $50,000 or $100,000, what’s your plan? What’s your plan to use this cash for your Q4 inventory planning? If you don’t want to run out of stock and missing sales where you’re a Q4, which is the busiest season for the whole year, you need to do this and that’s my recommendation. You need to place the water resource supplier and have it ready to ship before September 15th. Not October 15th, that is too tight, too late because the shipping delay could cause you in a situation where you have no stock to sell for Black Friday or Christmas.
This is the best part. By placing this order early, you got to save some money, avoiding the price increases when everyone else is placing Q4 sales orders two months later. Yes? If you listen to this advice, you will save money on product and on shipping costs. I hope you take my advice and I hope you enjoyed this video. If you want to take the full course, Sourcing Warrior Mastermind course, the link is below. Enjoy your day. Continue to move forward, push forward, drive excellence in everything you do. I’ll see you in the next video.
Check out the link, the Sourcing Warrior Mastermind link, undertake Sourcing Warrior’s quiz to find out your sourcing IQ. Make it fun, learn something, have a great day. I’ll see you in the next episode.