Apply membership prices to specific customer groups
Imagine you want to increase sales of a specific product by applying for this promotion. If any customer purchases this product, he will be a membership customer. A special price list for other products in the same category will be made visible when he navigates the store on some special sale occasions.
Integrating with Mailchimp/Sendgrid/Klaviyo
To a BigCommerce store owner, effective email marketing software allows you to easily group your subscribers into segments and message the target customers. Atom8’s native integration with Sendgrid, MailChimp, and Klavyio can unlock the full potential of automation in your engagement with new contacts, helping you to deliver a faster, more personalized customer experience.
Create “Most popular products” Category
When you have some top-selling products, you’ll want to change those products’ categories to “Most popular products” so that you can utilize the appropriate promotional campaigns for them. Now you no longer have to do that time-consuming task manually as Atom8 has covered for you.
Calculating Safety Stock Levels for Your eCommerce Business
Running a successful eCommerce business requires managing a vast array of variables, chief among them is inventory management. Having the right amount of safety stock in place – an additional backup measure to ensure your shelves are sufficiently restocked in case of unforeseen demand spikes – can lead to customer satisfaction and poor order fulfillment rates. However, there is hope! Following some simple steps, you can develop a safety stock strategy that ensures on-time delivery and maximum customer satisfaction. This blog post will cover the basics of calculating eCommerce safety stock levels, so your eCommerce business can handle overstocking or running out! What is safety stock? Safety stock, or buffer stock, functions similarly to an emergency reserve. Suppose you sell more of a specific product than anticipated. In that case, your supply chain is interrupted, or your item needs to be fixed, and safety stock permits you to continue selling that product. The most severe risk of not having a safety stock is a stockout. Assume one of your popular goods is out of stock, and consumers continue to request it. This is a minor concern if your supplier’s lead time is low, meaning you may acquire new inventory in a few days. However, if the lead time is already lengthy, that product may be unavailable for months. The same is true in the case of a supply chain issue, such as a material shortage. Stockouts drastically reduce customer trust and store performance without appropriate measures like BackOrder enabled. Your safety stock protects you against unanticipated events. How to calculate eCommerce safety stock levels Safety stock formula The most straightforward way is to utilize the following commonly used safety stock formula: Safety stock = (Maximum daily consumption x maximum lead time) – (average daily usage x average lead time) The variables in this formula are as follows: Fixed safety stock Fixed safety stock refers to the number of units kept as safety stock for each item. Retailers utilize current sales figures to estimate the quantity of safety stock to keep on hand. You may, for example, elect to preserve two weeks’ worth of safety stock for an item. It has a daily usage average of 10 and a daily usage maximum of 17. This product’s fixed safety stock would be between 140 and 238. Heizer and Render’s formula The following is the formula: Safety stock = Z score x standard deviation in lead time (σLT) The ideal service factor in inventory management is the Z score—the number of standard deviations above mean demand required to prevent stockouts. The standard deviation in lead time (LT) describes how frequently and to what extent your supplier’s average lead time departs from the actual lead time. When your supplier’s lead time fluctuates but does not account for variations in client demand, Heizer and Render’s formula is suitable. Time-based calculation Based on future demand projections, time-based analysis allows you to compute eCommerce safety stock levels for a specified time period. A time-based method requires two parameters: Greasley’s method Greasley’s safety stock calculation takes into account your supplier’s lead time as well as changes in product demand: Safety stock = Z score x standard deviation in lead time (σLT) x average demand (Davg) Greasley’s technique extends Heizer and Render’s formula by include the average demand factor. Safety stock with EOQ The best product inventory to acquire is the economic order quantity (EOQ), which includes holding, shortfall, and order expenses. It may be used as a guide for your eCommerce safety stock levels. EOQ = square root of (2 x setup costs per order x demand rate) / holding costs In Conclusion Holding just enough safety stock to stay away from either of these two extremes is the objective. This is possible with reliable data and the appropriate safety stock calculation. With many years of experience, we have strong tools and practices to help you calculate and manage your eCommerce safety stock levels. Contact us today!
Improving Your eCommerce Inventory Turnover
Finding ways to optimize your eCommerce inventory turnover is key for any online business looking to increase profitability and ensure customers get the products they need on time. In this blog post, we’ll discuss how you can maximize success on tightening your inventory control processes while keeping customer satisfaction high. What Is Inventory Turnover? The pace at which a company’s inventory is sold and then restocked is referred to as inventory turnover. For example, an inventory turnover ratio of 2 shows that you sold and restocked twice as much product as you held. Product companies use the inventory turnover ratio to assess the effectiveness of their supply chain and storage systems, as well as the degree of demand for their items. Ways to Increase Your eCommerce Inventory Turnover Ratio Enhance your customer experience to increase sales In today’s market, the main brand distinction is customer experience over price and product. Furthermore, research has shown that companies with a better customer experience generate 5.7 times more income than competitors with subpar customer experience ratings. Refining your customer experience is an excellent place to start if you want to boost yearly sales and sell more inventory. When it comes to improving customer experience, inventory tools like BackOrder and Atom8 are essential. The prior app allows customers to backorder products even when out of stock. At the same time, Atom8 takes care of automating much time-intensive inventory task, such as order notification, data entry to Google Sheets, or shipping workflows. Utilize just-in-time inventory management Just in time (JIT) is an inventory management strategy in which products are ordered, stored, assembled, and manufactured at the last feasible minute to fulfill orders. The JIT method aims to get orders to consumers as rapidly as possible while minimizing product holding costs. You do not need safety stock when you adopt the JIT approach, which minimizes the overall inventory in your warehouse at any one moment and results in a higher stock turnover. Streamline last-mile deliveries and warehousing You must ensure that your inventory moves swiftly and effectively from your storage facility to your client, regardless of whether you utilize the JIT inventory management strategy or want to maintain some safety stock on hand. When given the option of same-day shipment, just under half (49%) of customers say they are more inclined to make an online purchase. Additionally, if the same-day shipment is not offered, more than a quarter of customers will cancel their online orders. Consider the seasonality Around particular holidays, many companies see changes in demand. To maintain a good eCommerce inventory turnover ratio throughout the year, inventory levels can and should change in accordance with your order. Utilize capacity planning to determine when you’ll need more stock (and more workers to assemble or produce things) and when you can use fewer supplies (and workforce). Increase revenue by luring more customers It may seem apparent, but raising demand for your product is a certain method to lower your eCommerce inventory turnover ratio. However, it’s still important to note because it forms the basis of every flourishing enterprise. Additionally, while the idea of “making more sales” is straightforward in theory, doing it in fact is much harder. Minimize your chances of product returns Product returns hurt your revenue as well as your inventory. Although returns and exchanges will never totally disappear for product firms, it doesn’t mean you can’t take steps to reduce how often they happen. In Conclusion, From understanding what drives sales to find the most effective strategies, having knowledge on how to improve your eCommerce inventory turnover can take your online store’s performance and productivity up a few notches. However, even realizing an issue exists is only half the battle. You need to know how to calculate the inventory turnover rate, but you also need to know how to increase it if you want to use it effectively. Contact us today for more powerful eCommerce solutions.
