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When demand changes overnight
This is particularly challenging for smaller retailers and SMEs, as many smaller warehouses are deliberately run as lean operations. Carrying unnecessary stock, paying for unused space or maintaining more equipment and staff than are normally required is not sustainable for them. Social commerce introduces unpredictability that makes those calculations harder. A warehouse might be perfectly capable of handling its usual workload, only to experience a sudden increase in orders because a product has gone viral. There is no gradual build-up to give the business time to recruit staff, reorganize the warehouse or change its processes; the workload arrives, and they have to deal with it. The whole movement of goods around the warehouse can change. Fast-moving products may need to be repositioned, stock replenished more frequently, and areas normally used for storage turned into temporary staging space in a smaller facility, creating a knock-on effect throughout the operation.
Technology is only part of the answer
There is understandably huge interest in platforms such as TikTok Shop and how creators and influencers can generate demand. The ability to turn entertainment directly into a purchase is changing the relationship between retailers and consumers. But generating demand is only half the job. If a retailer creates a viral product but cannot fulfill the resulting orders quickly, the opportunity can become a problem. Customers do not particularly care why their order is late: they expect the retailer to deliver, and fast. Technology can certainly help. Better inventory management, warehouse
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