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.

Inventory management software

Inventory management software is a type of computer-based software that allows businesses to reduce expenses through optimized deliveries, sales, orders and inventory tracking. There are so many benefits associated with this type of software that it will take many pages to describe the details. So, if you want to take good care of inventory management, opt for a popular inventory management software. Checkout this point of sales system, it is one of the best in the market: www.shopify.ca/pos/

Managing the supply chain

Performing supply chain management for different sections of your business will provide the right setting for your business growth. Take some time to analyze your supply chain. This analysis must be thorough and include things like customer buying behavior, product demand, and raw material analysis. In this way, you can avoid the negative consequences of sudden changes in the number of sales.

Industry benchmarks

Just like in the case of every other business technique, it is crucial to analyze the results of the inventory management process. The eCommerce industry is a highly competitive industry and that’s why you must be alert all the time. By comparing the inventory management results with the established industry benchmarks on a regular basis, you can rest assured that your business can compete with other brands.

Inventory turn

Inventory turn is actually the time you need to sell a specific product that’s part of the stock. This turn is here to help you determine the health of your business and predict the product supply and demand in the near future. Use real world sales info related to stock items in order to identify inventory turn.

Drop shipping

Finally, we will mention drop shipping a concept that allows eCommerce owners to sell products without keeping a storage unit. Optimize your drop shipping efforts through a solid inventory management system for better results.

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