How to make ecommerce overselling a thing of the past and peace of mind your SOP.
When used correctly, QuickBooks can be a very powerful tool for tracking inventory. But the key to using QuickBooks to track inventory successfully is in appreciating how and why QuickBooks tracks all inventory activity at the item/product level. 1. Proper Item/Product Setup: It may be tempting to start recording your sales in QuickBooks and watch the revenue grow, but to get the most reliable financial reports, you’ll need to put in some time and effort up front. Here’s how to think through your inventory setup and list organization:READ: 5 Tips for Keeping #Ecommerce #Inventory Accurate in Real-Time. #Unify Click To Tweet
Do you want to use the SKUs from your website or other sales channel for your item/product names? If so, you can populate the “item name” with this info or choose to populate another data field with the SKU. Webgility Unify’s mapping features help to streamline the matching of different SKUs between all sales channels.
Decide how to organize your list. QuickBooks Online allows for product categories, but QuickBooks Desktop does not have the category feature. However, you can organize your QuickBooks Desktop lists by using the field: sub-item of.
Consider adding a few income accounts within your chart of accounts for a clearer view of your income on the P&L. Once these accounts are set up, you can choose to which account each item/product’s revenue maps from the dropdown menu in your item/product screen. Also, if you are in QuickBooks Desktop, you can change your mappings in bulk: Lists > Add/Edit Multiple List Entries
The cost field in the item/product setup is mostly just used to populate the default value on your purchase transactions (bills, purchase orders). This cost field is not directly used to calculate your inventory value—more on that below.
2. Accurate Starting Counts: Ideally, you want to get started with a physical inventory and accurate item/product counts. But realistically, it can be a challenge to get all of your inventory counted at once. If this is too overwhelming, start with a large even number, like 100 or 1,000 units for the inventory count of each item/product, and then adjust as accurate counts are done using a quantity adjustment. When recording the adjustment, Just be sure to use the date of the actual count.
3. Proper Inventory Workflow: Now that you have inventory set up, you need the proper workflow to maintain accurate counts and costs. The following transactional documents can add inventory quantities to QuickBooks:Continue reading →
Let’s consider the simplest use case—selling products with different price points. If you have different price points for different customer segments, you’ll need to keep track within some system of record, typically in accounting. Instead of creating proper structural rules, most sellers end up creating different SKUs and then tagging a different price for each of them. Or they keep the product at the same SKU but provide different business logic for each customer segment and its corresponding price point. Continue reading →
Why sellers should commit to back-end operations before pursuing just another pretty piece of SaaS At the risk of over-simplifying the ecommerce industry, most of its software falls into one of two categories — sexy and unsexy. Inevitably, the more seductive side of selling entices business owners to buy tools they must have to attract customers, such as beautiful websites, video tools, artificial intelligence, marketing automation, and the like. Because owners think they need customer-facing tools in order to sell online—and because they’re more fun to use—they put tremendous business resources toward these shiny objects.Why #online #sellers should commit to back-end ops before pursuing another pretty piece of #SaaS #Unify Click To Tweet The truth is, sellers who first invest in the software that does the heavy lifting around data and order management are far more likely to survive their first year. Because the less showy, “boring” side of the business is what sellers actually use to run the company, without it, they are sure to fail. Among dozens of other tasks, this is the software that allows them to
automatically post and sync sales data to accounting, inventory, and shipping
As published in Internet Retailer‘s 5 Key Ecommerce Fulfillment Trends
Mountain bike apparel retailer Club Ride recently faced a customer satisfaction challenge. The online company, which was founded in 2008, was growing rapidly, and earlier this year moved away from QuickBooks to more sophisticated tools to manage its fulfillment through its multiple sales channels. But without integration between sales, its e-commerce platform, its customers and its inventory, Club Ride often found itself unable to fulfill customers’ orders quickly—or even at all. As a result, its brand equity was suffering. Read how this apparel retailer adjusted their back-office workflows with Webgility's #Unify Click To Tweet
Club Ride’s dilemma isn’t uncommon among retailers. Many merchants now sell through multiple sales channels—including online marketplaces, their own websites and their bricks-and-mortar locations—and must deliver orders to customers accurately and quickly to compete in today’s competitive retail arena. “While this adjustment increases the seller’s ability to scale, it also creates a new kind of chaos around data management and logistics when it comes to inventory, fulfillment, and shipping,” says Parag Mamnani, CEO of Webgility, an inventory management technology provider.Continue reading →
People who really want to make a go of e-tail would be looking to set themselves a target of a 6-figure sum in monthly sales, with a decent profit margin (minimum 30%). This will give you more financial freedom and the option to scale up your business even further. The process of generating a handsome profit all starts with choosing and testing the right products to sell from your online store. Here are some tips for beginners looking to source and market profitable items for their niche customers. Continue reading →
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