In this article we’ll discuss how to push your ecommerce business forward through proper inventory management. Some points extend beyond inventory management as goals. Consider these goals as good use of your work time that you’ll learn to free up in the following paragraphs.
Inventory management goals to aim for
Inventory management is like hygiene. It does not contribute to growth and success. However, you need to be hygienic before you do anything else. The main factor of success is the amount of time you put in. So, the goal becomes to get inventory management out of your way as quickly as possible. Yet, maintaining a high standard for it.
Of course, this calls for extra labor. Unless you employ technology. Which is what we, and any seasoned merchant, will recommend to you. There are basically two types of inventory management options.
The first one is the traditional inventory management system. One, that you import and export information by hand. Consider this a rather offline solution. It’s better than no software, but nowhere near the second option.
The second one is that joins all your accounts (like Amazon, Shopify, MailChimp, etc.) and creates a seamless flow of information between them. Which, as a result, allows many tasks to be automated. In other words, you no longer need to be an intermediary. This type of software also provides you with a control room where you can manage everything from a single location.
Get inventory management software
As hinted, we strongly recommend adopting the second type of software, like Multiorders. It’s a simple, easy to use, although powerful solution. It basically automates every task that can be automated. The only inventory management you’re left with is the physical aspect of it.
Also, you have to confirm some things with the software. For example, whenever you’re running low on a product (below set par level), a notification will show up suggesting a reorder. Couple of clicks later, you’ve already sent an automatically filled purchase order to the assigned supplier.
Just think about all the skipped steps, compared to manual inventory management. You didn’t need to check on stock levels, compare them to par levels, find your purchase order template, fill it or send it. Reduce your inventory management goals to just one - to get it out of the way.
Certainly, there are more features. But moving forward, we’ll outline the most impactful ones for business growth.
Making the best out of software
Once you employ software, growth won’t happen by itself. You need to use the acquired free time efficiently. Even though you can find some of these features elsewhere, to have all of them check out Multiorders:
- Enter more sales channels. As most new merchants, you’re probably limiting your business to a single sales channel like eBay. With the aforementioned software, the added burden of an additional sales channel is near to zero. However, the extra exposure your products get can make a huge difference on your sales volumes. We also recommend doing this as soon as possible, so you start building a reputable seller account. As well as creating a client base, especially if you opt for your own ecommerce website.
- Analyze reports and act on them. You can’t improve your business if you don’t reflect on its current state. Meaning, you have to pull up sales and other reports and analyze them. Those figures will tell you which products you should invest heavier into (advertising) or drop completely. There are more types of reports, for example, one that compares performance between sales channels. Likewise, the results hint where to invest more or less of your time and capital.
- Consider further automation. As previously mentioned, software can’t physically receive, warehouse, pack and ship goods for you. But Amazon can. They have a service called FBA / MCF. Which, by the way, integrates with Multiorders. Of course, it costs. But if you’re good at keeping a healthy level of inventory (just enough to meet the market demand), it is definitely worth it. About 66% of Amazon’s top 10 000 sellers use it. All you’re left with is to choose which products to sell, keep them in stock and to advertise and market them.
If you’ve ever managed your own fulfillment, you know it can be quite time-consuming. Higher sales mean more time spent packing and shipping, or more money spent hiring someone to handle it. - Gennifer Carragher
Poor inventory management is something you work for, but good inventory management works for you. Technology lays efficient paths to business expansion, which would otherwise take gigantic amounts of labor. Embrace the up-to-date way of doing business and reap the benefits.
As for those interested in Multiorders, you can try it for free. The two-week trial is more than enough to get used to it. The setup is quick and easy, you don’t need a credit card and if you decide to get off of it afterwards - there won’t be any consequences. If you’d like to see how this software compares to competitors - visit GoodFirms.