Inventory management is all about conducting activities that can guarantee that a business will keep an optimal level of needed resources like avoiding overabundance or shortage of products
. Experts agree that inventory management is one of the most important elements of eCommerce business. With its help, these businesses can work with no time lag. We are living in a world where time lag can cost you a lot of money and it can hurt your reputation too. According to the latest statistics, retailers in the United States are investing almost $1.5 for every $1 of sales. Yet, the same statistics show that almost half of the small businesses don’t have a detailed inventory management strategy. They still rely on manual techniques and methods or don’t take care of inventory.
On the other hand, it’s worth mentioning that businesses, regardless of their size, that have designed and followed a solid inventory management system have witnessed some amazing results like 95% timely deliveries, 95% of orders from suppliers deliver in a timely manner and more than 7% reduction in situations where a product is out of stock.
Backup stock, geographical benefit and balanced supply and demand are some of the advantages of developing an inventory management system for an eCommerce business. Now that you know why inventory management matters, it is time to see how to use this management.
There is no doubt that this is a complex type of management. eCommerce businesses must handle more than one factor at the same time like up-to-date eCommerce platform or a few payment channels. When the business grows, these factors are becoming even harder to handle. That’s why it is highly recommended to create solid inventory management tools and principles from the start. Let’s see how we can do this without any hassles.