Mastering Inventory Management: 5 Stock Control Tips for eCommerce Business Owners
Running an eCommerce business can seem easy at first. However, like any product-based business, you need a comprehensive inventory management strategy to keep things running smoothly.
Without one, a whole host of problems could arise, from spoiled products to unfulfilled orders. To help you avoid these and other eCommerce dramas, here are five tricks online business owners use to win at stock control.
Best Ways online business owners use to Win at stock control
1. Take Storage Seriously
You don’t want to disappoint customers by not having enough stock. In addition to hurting sales, this can affect your credibility. So consider investing in a dedicated storage space that’s safe and easy to access.
You can rent commercial real estate, establish multiple warehousing locations, or use a spare room if you’re a small business. For those with greater financial wiggle room, investing in stock control software may be the way to go.
2. Create a Quota for Stock Levels
To avoid things like late order fulfillment and running out of stock, set a quota for the number of products available in storage at all times. That way, the moment you find yourself with fewer products than you’re supposed to have, you’ll know it’s time to source more stock. For best results, adjust this quota according to seasonal spikes and dips in customer interest.
3. Invest in an Inventory Scanner
People make mistakes all the time, so no matter how well-trained your staff is, a bit of human error is unavoidable. With a barcode system, however, you can decrease the risk of harmful mistakes tenfold. As overwhelming as it all sounds, you’ll be happy to know that designing and printing barcodes isn’t expensive at all.
With the right scanner, you can collect better data and process your stock at a much faster rate. The key is to have your products scanned at every point in the order fulfillment process. That way, you can track your orders and be able to tell at a glance what your inventory levels are looking like.
4. Let Data Drive Your Decisions
The more sales you make, the more you’ll develop an understanding of the patterns in your business. This will help you predict peaks and valleys in demand so you can adjust your inventory accordingly. Assessing demand doesn’t require excessive effort, especially with the abundance of digital analytics tools currently available.
5. Build a Strong Relationship with Suppliers
There needs to be a lot of trust and a good amount of communication between you and your suppliers. This can help you get a tighter grip on inventory controls while optimizing your procurement process.
Building a strong relationship with your suppliers can also lead to cost savings. They may offer you better pricing or discounts if they see you as a loyal and reliable customer, helping you stay competitive in the market.
What’s more, if your supplier foresees a shortage looming, they’ll be more likely to let you know in advance if you have a good relationship with them. They could even help you figure out how to deal with such situations.
It’s Time to Get Down to Business
Cover these five points, and you’ll find that you’re far more organized with your inventory. Note that even after putting them into use, it’s a good idea to continually monitor just how well they serve your business. When you feel the need to make a change after some observation, put your inventory management hat on and get to work.
