Inventory management is an essential part of operating a successful eCommerce business. Having accurate information about the items you have for sale and keeping on top of inventory levels helps maximize profits and prevent losses from over- or understocking. With so many strategies to consider, it can take time to figure out which strategies are right for your business.
In this blog post, we’ll look at some practical approaches to inventory management that you can use in your online store. From using automation tools to implementing analytics systems, discover the essential eCommerce inventory management practices that will help your business stay organized and achieve greater efficiency.
What is inventory management?
Inventory management is acquiring, storing, and productively selling stock. It understands how much stock you have, how much it should sell for, where to hold it, and for how long.
Understanding inventory management is critical for every organization, large or small. It reduces waste, reduces expenses, and saves time. Keeping up with supply promotes greater customer attention by providing consumers with what they desire.
5 essential eCommerce inventory management tasks
1. Take stock of your emergency supplies
You can never predict when something unforeseen could occur. As a result, it’s crucial to have backup supplies.
There may be a variety of reasons why you require this. To show that unexpected supply and demand occurs, we merely need to look at recent instances of panic buying. Keeping track of the goods will ensure you are ready for unanticipated circumstances.
2. Balance the stock
Simply avoid both overstocking and understocking is all that is required. It’s important to strike the correct balance.
The last thing you want to do is have to sell all of your stock. However, you also don’t want to carry so little inventory that you have to turn away customers and lose your target market. Through clearance sales and negative reviews, both of these things may result in earnings loss.
3. Utilize the kitting method
Kitting is the process of assembling stock to be sold as a package. Like deals like Buy 2 Get 1 Free. It is beneficial to sell any excess inventory for a profit. Additionally, it raises average order value and conveys to clients that they are receiving a fantastic offer.
4. Examine previous purchases to forecast future stock purchases
BackOrder – eCommerce inventory management technology, gives your eCommerce store a log of past and future orders. With this data, you can determine whether the stock should be increased or decreased.
Stock tracking allows you to know which goods are selling the best, helping in the evaluation of yearly patterns, and may be performed as frequently as desired.
5. Use storage wisely
When collecting goods to sell, it is critical to consider the physical storage of products. Whether you keep products in a spare room or a warehouse, make sure they are easy to find.
Keeping them in a location where they can be readily packed and shipped means the client will receive the item sooner. Based on sales and trends, choose a location. If necessary, rearrange your furnishings.
Efficient inventory management is critical for eCommerce businesses. By following the strategies outlined in this blog post, you can ensure that your business is maximizing profits and serving its customers well.
We recommend trying out BackOrder to get started on the basics of inventory management. Plus, the app rescues lost sales by allowing customers to pre-order out-of-stock products, so your inventory team can prepare ahead of time!
If you need help implementing these eCommerce inventory management strategies or have questions about managing your eCommerce inventory best, don’t hesitate to contact us. Our team of experts would be happy to provide guidance and advice.