Real-Time Inventory Allocation for Dropshipping Operations
Dropshipping model required real-time inventory visibility across 15 supplier systems with inconsistent update frequencies
Context
E-commerce store dropshipping 8,000 SKUs from 15 different suppliers. Each supplier maintained separate inventory system with different API formats, update schedules, and stock availability rules. Store website showed inventory based on last-known supplier data, but actual availability changed throughout day. Result: 30% of orders placed when website showed 'in stock' but supplier was actually out of stock. Suppliers had different fulfillment timelines (1-3 days, 5-7 days, 10-14 days) that weren't reflected in inventory display. Customers received order cancellation notices 1-2 days after purchase, creating poor experience.
The Real Problem
Supplier APIs had different capabilities: some provided real-time inventory, others updated once daily, some had no API (required manual email checks). Inventory data formats inconsistent: some suppliers provided available quantity, others provided 'in stock' boolean, some included reserved inventory, others didn't. Supplier inventory systems had downtime and API rate limits—aggressive polling caused API bans. Website inventory display couldn't account for supplier fulfillment timelines—showed 'in stock' for items with 10-day fulfillment time. Off-the-shelf inventory platforms assumed single source or simple multi-source models, not complex dropshipping with 15 suppliers. No way to prioritize suppliers—if multiple suppliers carried same SKU, system didn't know which to use. Customer expectation: website should show accurate stock and realistic shipping estimates, but supplier data didn't support this. Budget constraint: couldn't afford enterprise multi-source inventory platform. Operational constraint: suppliers unwilling to change their systems or provide better API access.