On average, an inventory management application will save an ecommerce merchant ~30% of their management costs. However, those who use software seem to do much better than that. Meaning, every serious merchant uses software.
The reason behind it is the opportunity cost. In other words, whenever you choose something, you take a loss. The value of that loss is equal to the best other option you could’ve taken.
For example, you’re managing inventory manually. Let’s assume you make $2,000 per month. That’s roughly $11 per hour. If you spend 4 or more hours per month managing inventory, you would’ve already benefited from using an inventory management application.
Excluding handling and packing from those hours, which is not a part of inventory management software, but you can automate it as well. But that’s not the opportunity cost. It’s the 4+ hours you could’ve put into something better. Like uploading your best selling products onto another sales channel.
Let’s take Amazon as an example. That doesn’t just bring more profit. It also starts building your reputation on Amazon. Lifting listing limits and collecting customer feedback along the way.
The opportunity cost is the value of those things. As well as the profit. If you’re not already using software, your business is certainly bleeding profit. But it’s never too late to act on it.
If you’re interested in a more detailed explanation about this cost, here’s an article about that.
We recommend Multiorders. It’s as simple as inventory management can get. Basically, you integrate all your sales channels and other accounts into it. Now, the software flows information through all those connected links seamlessly.
For example, the products you’ve added to Amazon. Whenever you sell one, the stock level updates automatically on your website as well. This eliminates overselling. As well as many other human errors through the use of its features. Not to mention the cost- and time-efficiency.
The cost is miniature compared to similar services. Any Multiorders user, despite their price plan, has full access to all of the features. Create as many sub-accounts for employees as you want. Connect as many sales channels as you like. Those are common constraints on similar software and they usually seriously cripple growth.
You can use Multiorders for free for up to two weeks. You can set it up and get the hang of it within the hour. So, considering that you don’t even need a credit card to start, it’s quite the offer. Stop enduring those opportunity costs and level up your business.