Inventory glossary
What is Dual sourcing?
Dual sourcing means buying the same product or raw material from two different suppliers instead of relying on one.
For a small Shopify store, dual sourcing protects you when one supplier runs late, raises prices, or goes out of stock. If your candle wax supplier has a factory issue, you can shift orders to the second supplier instead of going out of stock on your best sellers.
Use dual sourcing for your highest-revenue SKUs first, not everything. Splitting every item across two suppliers adds admin work and can mean smaller order quantities that miss case pack discounts, so it only pays off where the risk of a stockout is costly.
Example
A candle store sells 400 units a month of its best-selling scent. Instead of ordering all 400 from one supplier, the owner orders 300 from Supplier A and 100 from Supplier B. When Supplier A has a two-week delay, the store still has Supplier B's stock to cover sales while waiting.
Common mistakes
- Splitting orders so small that neither supplier gives good pricing or meets minimum order quantities.
- Assuming both suppliers have the same lead time and quality when they often differ.
- Dual sourcing low-value SKUs while leaving critical hero products on a single supplier.
Dual sourcing and SteadyShelf
SteadyShelf lets you set a different lead time and supplier per SKU, so you can track reorder dates separately for each supplier when you dual source a product.
SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.
Related terms
Single sourcing · Supplier lead time variability · Supplier scorecard · Lead time · Minimum order quantity
FAQ
Does dual sourcing cost more than using one supplier?
Usually yes per unit, since splitting volume can mean losing volume discounts. The tradeoff is lower risk of running out of stock, which can cost more in lost sales than the extra unit cost.
How do I decide which products need dual sourcing?
Start with your top selling SKUs and any product where a stockout would hurt revenue the most. Low-volume or low-margin items usually are not worth the extra supplier relationship.
Let SteadyShelf do this math for every SKU
Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.
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