Often time people might think of eCommerce company as a technology. I would like to claim that eCommerce is fundamentally an operational problem. For an eCommerce company to succeed, the company must source effectively and carry the right products for the buyer segments it can access. Too much excess inventory will lead to the freezing of cashflow and thus affecting future growth potential. On the other hand, if the catalog is not wide enough and cannot provide the required coverage, the business won’t be able to capture the interested of the customers and thus affecting the current cashflow.
In short, a good eCommerce company must carry the right breath and depth of inventory so it can take on the right level of demand in the market and quickly churn through the stock. This will ensure maximum profitability.