Ecommerce Stock Management – What to avoid
Ecommerce companies face many challenges in the business world, and this certainly includes ecommerce stock management. This type of inventory management can be challenging – with high costs and lots of attention associated with it; it makes sense that lots of online companies purposefully do the bare minimum.
Sure, neglecting ecommerce stock management may seem like a way to avoid the nitty-gritty task of inventory management, but poor inventory management could very well be the neglected task that breaks your business. Proper inventory management for eCommerce could help you avoid costing your company big bucks.
Poor ecommerce stock management results
Check out some of these costly possibilities that could result from poor ecommerce stock management:
- Poor inventory management can cause delays in shipping. Think about it: you’re putting an order in with a vendor that carries a variety of the products you keep in stock. If your ecommerce stock management system is out of whack, you could order incorrect quantities, miss products, and even forget to put in orders when you don’t need them, causing you a lot of unnecessary stress and possible delayed shipments, undoubtedly leading you and your company to unsatisfied customers.
Production shortages, overstocking goods & overselling
- Not investing in proper ecommerce stock management systems for your online business can result in poor production management – in layman’s terms, you could be running empty on all your popular products simply because you didn’t track your inventory well enough. Investing in proper inventory management could help you battle customer dissatisfaction, something you naturally need to avoid as best as you can.
- Keeping track of your inventory in real-time, (or as close as possible), is important because it keeps you in the know about what products you have in stock. While poor inventory management often leads to shortages, it can also lead to overstocking goods – in other words, you could have a bundle of items in your warehouse that aren’t selling as expected, resulting in a loss of profit. Carefully monitoring what works for your business and what doesn’t, can help you identify which products you should avoid buying in bulk and also where you should shift your focus.
- Do you sell products on multiple online platforms? While it’s a great business move, if your ecommerce stock management system is behind the times – or non-existent – you run the risk of overselling and over-promising products that you might now have. If you’re not frequently checking your stock across all channels, the potential for overselling is highly increased. We recommend buying into an effective ecommerce inventory management program that takes these factors into account.
Wasted resources in ecommerce stock management
- Have you ever sent an employee, or even spent time yourself, fumbling through your warehouse looking for a product, only to come up empty-handed? Maybe you’ve found the item but spent valuable hours looking for it. An unorganized ecommerce stock management system can lead to wasted time, money, and resources. Have your employees ever entered incorrect data into your management system? Is this potentially because you still run a manual system? Of course, you only hire the best employees, but manually tracking ecommerce inventory leaves room for natural, human error – this is stressful, time-consuming and can ultimately end up costing you time and money. Just one small disruption could throw off your entire system.
Fortunately, staying in-the-know about what works and what doesn’t and investing in the right inventory management software can help you reduce – or eliminate – the errors that sometimes come hand-in-hand with ecommerce stock management.
While buying the right software is important, consider these additional tricks for optimizing your management strategy:
- Check in with your employees from all departments – you can better address any obstacles before they become a serious issue and perhaps before your software management program even detects a problem.
- Monitor your suppliers – figure out your best reorder strategy and make sure you’re never out of stock on your products with the highest demand.
And finally, if you need help choosing the optimal software, feel free to chat to our guru.