The majority of ecommerce companies face the daunting logistical challenge of inventory management. The words “Sold Out” or “Out of Stock” can prove detrimental to your online firm as they can turn potential customers against you and make them abandon your website. These words can make you lose customers, trust, revenue, and your reputation.
Studies confirm that online shoppers leave their carts 68% of the time and because of this, ecommerce businesses can lose an estimated $3 billion. Products being out of stock is one of the major drivers of shopping cart abandonment.
Put an end to your inventory woes and build and retain your consumers’ trust in you with these simple tips.
#1 Keep alternate suppliers – Losing a critical supplier could be detrimental your ecommerce operations. Having backup suppliers in place will enable you to meet your customers’ needs with minimal disruption.
#2 Predict product demand – Managing your inventory effectively and keeping track of sales will help you decode the search patterns of your customers. You can easily predict your stock requirements once you know which products sell the most in which months of the year.
To keep a tab on your products, you can create online documentation where you can store information related to your products and update it frequently. You can access it anytime to get details on which goods are over-stocked and which are under-stocked.
You should also keep track of holidays and seasonal changes to forecast your inventory requirements.
#3 Dropshipping –
Dropshipping entails partnering with manufacturers and giving them the power to deliver products directly to customers. With dropshipping, the manufacturer not only builds the products but also stores and ships them for you. To ensure smooth delivery, it is important to keep in constant contact with your manufacturer.
#4 Adopt an inventory management system – You can replace your conventional inventory management with a cloud-based inventory management system. This adoption will be instrumental in making your inventory management streamlined and organized. The flexibility you get with an online system is unmatched and such a system will help you keep track of your backlog in real-time.
You can store all your stock-related information on a centralized platform and access it anytime from any device. To know your inventory turnover, you will not have to refer to spreadsheets or various files, as you can get this data instantly from a single portal.
Inventory software can provide you with insightful reports on when goods go out of stock and which products get stuck in the warehouse for too long. Thanks to such stock management software, you can even set alerts when inventory levels plummet.
Optimizing your inventory management is important to streamline your ecommerce operations and improve customer satisfaction. Abandoned shopping carts and dissatisfied customers are a nightmare for any ecommerce firm. The retail landscape is hyper-competitive, and a single mistake can turn off ever-demanding customers.
Managing your inventory correctly can be a game-changer for your ecommerce company. Proper stock management will lead to timely delivery and improved customer loyalty.