Proper inventory management is often the difference between good and great businesses. Here we’ll go through some inventory management techniques. They’ll help you purchase the right amount of stock and liquidate excess or old stock.
Inventory management techniques,
#1 Test products by dropshipping
Adding products to your shops is always a risk. It’s difficult to purchase the right amount of stock right off the bat. For some products, a great way to negate the risk of such investments is to dropship first.
Seek realistic representation of product demand – set prices accordingly. Under these circumstances, accurate results outweigh higher profit margins as future profits.
Inventory management techniques,
#2 Gift properly
Gifting stale, inexpensive stock is a great inventory management technique, but rarely is it done right. Sellers almost always introduce the gift along with the item of interest.
It’s important to understand that people don’t buy items for the side gifts. Gifts are there to help wondering customers decide whether they want the main product.
Therefore, it’s much more viable to introduce the gift only after the main product has been covered. To improve customer loyalty, it’s even better to not mention the gift at all before the sale has been made!
Inventory management techniques,
#3 Dead stock
As a last resort, to get some stock off your hands you might want to use services that buy up inventory. Exercise this option only when a loss is inevitable and the freed up warehouse space and liquid funds exceed stale stock in value.
There ain’t no such thing as a free lunch.
Inventory management techniques,
#4 Keep the opportunity cost in mind
The opportunity cost is the value you could have received, but passed up in pursuit of another option. Always keep the opportunity cost in mind. This will help you put values on your time, decisions, priorities and such.
As a result, you’ll have better understanding of your inventory and how to get the most out of your funds and physical space.
Combine them all in one dashboard – try software
No inventory management technique will outperform software. The biggest time consumers of owning an ecommerce business are dull, mundane tasks that can be done for you by computers.
There’s plenty of software to choose from, but with similar functionality the main difference is price. After all, the time you save must be worth the price you pay.
Multiorders, software built for managing your ecommerce business, has one of the most competitive pricing in the market. The setup takes only a few minutes. Upon signing up, you’ll also receive a free two-week trial.
Conclusion
These inventory management techniques will speed up your business by increasing your money flow. In result, that means more work, but only if you don’t use software designed precisely to solve the problems you’re having daily.
Evaluate the time you put into tasks that Multiorders can do for you. Undoubtedly, you’ll see how profitable as well as unburdening our services can be.
