Can you provide your advice about inventory levels if we are not able to use a drop shipping method.
Our suppliers are overseas and it will take them 7-10 days to deliver the items via express and it will also cost quite a lot for single orders as we will be paying international shipping for each order. We have opted to purchase the products in bulk and use a local fulfillment house to do this.
As a result we have run into our first major dilemma - We are selling small accessory items and are wondering how much we should be stocking up on? Should we be focusing on 3 of each, 10 of each etc? Ultimately we do not know how much we can sell, but we also do not want to lose momentum if the sales start coming through for popular products and have to make our customers wait approximately 14 days in total to receive their product.
Our market will be mainly within the same country so by normal or express post will usually reach the customers within 1 - 5 days. I don't know how happy people will be waiting 14 days for an item to be restocked and delivered but at the same time we do not want to pay additional hundreds of dollars on inventory if we cannot sell.
Your feedback would be much appreciated.