How to Work with E-Commerce Suppliers: 9 Expert Tips for Success

Late shipments and inconsistent product quality can cripple the growth of Australian e-commerce businesses. These issues become even more severe when scaling operations or working with offshore suppliers.

Learning how to work with e-commerce suppliers effectively means building clear, structured relationships that minimise delays, maintain quality, and support long-term growth. Whether you’re selling your products on Shopify, Amazon, or your own website, your supplier strategy directly impacts fulfilment speed and customer satisfaction.

Learn how to build a more reliable and cost-effective e-commerce supply chain with nine expert-backed strategies that reduce risk and boost resilience.

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Quick Summary: Tips for Managing E-Commerce Suppliers in Australia

To work effectively with e-commerce suppliers, Australian businesses should start by setting clear expectations and signing written agreements. This includes product specs, timelines, KPIs, and communication protocols. Using inventory tools like Shopify, DEAR Systems or TradeGecko helps improve visibility and prevent stockouts. It’s also wise to diversify suppliers to avoid disruptions and compare domestic vs offshore options based on speed and cost. Consistent communication, regular performance reviews, and long-term collaboration help suppliers deliver reliably. Planning for disruptions and working with local 3PL partners like Couriers & Freight can further strengthen your supply chain. Together, these strategies will help you build a more resilient and scalable operation.

9 Tips to Work with E-Commerce Suppliers

Great supplier relationships are the backbone of fast, smooth, and scalable e-commerce. Here are nine practical tips to help you work more effectively with e-commerce suppliers and build partnerships that support long-term success:

Tip #1: Set Clear Expectations from the Start

Many issues with e-commerce suppliers, like late or incorrect orders, stem from unclear requirements. Avoid this by confirming all essential details in writing before your first order. This includes key terms such as product specifications, MOQs (Minimum Order Quantities), shipping instructions, and timelines.

Establish how you’ll communicate (e.g., email, Slack) and how frequently updates should be shared. Use shared folders in Google Drive or Dropbox to centralise documentation and reduce version confusion.

Agree on KPIs like defect rates and delivery speed to track supplier performance and stay aligned. Clear expectations reduce friction and help your supplier meet demand as you grow.

Tip #2: Invest in Inventory and Order Management Tools

Managing inventory across multiple sales channels and suppliers can be challenging, especially without proper inventory visibility. One missed stock update on a popular SKU can lead to over-ordering, backorders, and double-selling. Platforms like Shopify, WooCommerce, DEAR Systems (an Australian-based solution), and Cin7 help you track stock levels, sync orders, and automate reordering.

Couriers & Freight offers real‑time inventory and warehouse management integration, providing live updates from supplier dispatch through to warehouse arrival. This improves stock transparency and enables faster, more informed decisions.

Tip #3: Use Written Contracts and SLAs

Missed deadlines and incorrect deliveries are common when there’s no formal agreement in place. These issues often stem from vague verbal arrangements, which can create confusion, especially in international trade.

Once you’ve defined expectations, reinforce them with written contracts and Service Level Agreements (SLAs). They define product specifications, delivery timelines, penalties for delays, and dispute resolution terms. 

Include packaging, labelling, and return procedures in your SLA to ensure full alignment. A strong SLA protects both parties and minimises the risk of costly misunderstandings. It also helps enforce delivery accountability and gives you leverage if fulfilment issues arise. You can find free SLA templates through platforms like LegalVision or business.gov.au.

Avoid handshake deals, just one missed shipment during peak season can undo weeks of planning. Formal agreements help prevent that.

Tip #4: Communicate Consistently and Transparently

Shipping delays and sudden inventory shortages can disrupt your e-commerce operations, especially during peak periods like holiday sales or major promotions.

Clear and consistent communication prevents last-minute surprises and keeps orders on track. Establish a routine for updates, such as weekly summary emails, shared dashboards with live order tracking, or scheduled video check-ins. Use real-time messaging tools like Slack or WhatsApp to flag urgent issues and monitor production progress or stock allocation.

Plan around timezone differences and communicate public holiday schedules in advance to avoid misalignment. Always share updates on demand forecasts, inventory levels, and upcoming campaigns early. This gives suppliers time to adjust their production and shipping timelines accordingly.

Tip #5: Work with More Than One Supplier Where Possible

Relying on a single supplier puts your fulfilment, revenue, and reputation at risk. Many Australian e-commerce businesses face serious disruptions when this happens.

Working with multiple suppliers gives you greater flexibility, stronger negotiation power, and backup options if one supplier can't deliver. You might use one for core products and another for seasonal items, or split orders between domestic and offshore partners depending on lead times and product types. 

Some Australian businesses are also exploring nearshoring. This method allows businesses to source from geographically closer regions such as Vietnam (for textiles, electronics, and consumer goods) and Indonesia (for FMCG and packaging).

Consider tapping into Australian-based supplier networks like TradeSquare, Australian Wholesalers Directory, or local B2B marketplaces to diversify your sourcing. These platforms can help you find reputable backups while reducing your exposure to international delays.

Building a multi-supplier strategy makes your business more agile and resilient during sales surges or global disruptions, as many experienced during COVID-19.

Tip #6: Review Supplier Results Regularly

Many e-commerce businesses overlook supplier performance until something goes wrong. Without performance tracking, you may miss issues until customers are affected, leading to delays, quality problems, and negative reviews.

To stay ahead, track key metrics such as on-time delivery rates, defect rates, and response times. Use tools like scorecards, issue logs, or a KPI dashboard (e.g., from your inventory management system) to keep suppliers accountable and flag potential issues early.

Schedule quarterly performance reviews and share your findings with each supplier. These sessions are a valuable opportunity to collaborate on improvements, agree on corrective actions, and align future goals.

A structured review process keeps your supply chain efficient and protects customer satisfaction as you grow.

Tip #7: Build a Long-Term Collaborative Partnership

Are your supplier relationships purely transactional, or are they true partnerships? Many businesses struggle to move beyond basic ordering when working with e-commerce vendors.

Shifting to a long-term collaborative partnership unlocks greater value. When you treat suppliers as strategic partners, you gain access to better pricing, priority production, and early releases of new products. Share your growth plans and seasonal forecasts to help vendors plan. Offer incentives such as volume commitments or prompt payments. These build trust and encourage partners to prioritise urgent orders, maintain steady stock, and be more responsive when challenges arise.

For example, a Melbourne-based skincare brand partnered with a local contract manufacturer by committing to quarterly production volumes and sharing their e-commerce campaign calendar in advance. In return, the partner secured raw materials early and prioritised last-minute replenishment orders during high-demand periods. This collaboration helped the brand avoid stockouts during peak sales and reduce turnaround times by over 30%.

These partnerships reduce risk, boost agility, and create a supply chain that scales with your sales volume without the usual growing pains.

Tip #8: Balance Regional and Offshore Suppliers

Choosing between local and overseas suppliers is a key decision that affects fulfilment speed, margins, and customer satisfaction. Regional suppliers offer benefits like faster shipping, easier communication, and streamlined returns. Offshore suppliers may offer lower unit costs but often involve longer lead times and greater exposure to delays, customs issues, and quality concerns.

When evaluating suppliers, factor in your product type, customer expectations, and working capital. You should also plan for exchange rate fluctuations, which can significantly impact the cost of offshore sourcing over time.

Rather than relying entirely on one or the other, many Australian businesses find that combining both regional and offshore suppliers creates a more resilient and cost-effective supply chain.

Tip #9: Prepare for Supply Chain Disruptions

Effective supplier management means planning for disruptions before they hit. Even a small delay can ripple through your entire e-commerce operation.

To reduce exposure, maintain safety stock for fast-moving items and work with multiple suppliers across different regions. This helps protect against single points of failure and gives you greater flexibility during unexpected events.

Partnering with local third-party logistics (3PL) providers also increases agility and allows you to reroute stock or adapt fulfilment plans quickly. Couriers & Freight offers supply chain management solutions with real-time updates, rerouting options, and local fulfilment support that keeps orders moving.

Optimise Your Supply Chain to Strengthen Your Business

Supply disruptions and slow turnaround times can hurt customer satisfaction and limit growth. Understanding how to work with e-commerce suppliers is key to overcoming these challenges.

When your supply chain runs smoothly, fulfilment becomes a competitive advantage, not a bottleneck. With trusted logistics partners like Couriers & Freight, you can scale faster while avoiding fulfilment delays and customer churn.

Strengthen Your E-Commerce Supply Chain

Get reliable inbound shipping, warehousing, and supplier support from Couriers & Freight.

Get a Quote Now