An inventory management system can help you manage your inventory stock more efficiently. A great inventory management system can simplify arduous processes like ensuring you are alerted when stock levels are low, or even processing returns from customers.
Common Obstacles to Inventory Management
Over-Stocking and Under-Stocking
Unlike Christmas stockings, you don’t want your store to be overstocked.
Overstocking means you have precious capital tied up in inventory just sitting on your shelves, which means you have less budget for marketing and running your store. You also risk having products you’ll never be able to sell – you never know when demand is going to suddenly dry up, leaving you with a bunch of useless paperweights.
On the flip-side, under-stocking is just as bad. On that end, while you free up capital, you run the risk of losing sales due to not having anything to sell. This can also hurt your reputation – if you bought something from a store, and they refunded your order without warning and told you they ran out, what would you do? I’d go somewhere else.
All the obstacles above can be solved by having a centralized inventory management
Here are some common systems we’ve seen:
Manual Management via Spreadsheets
Manual Management via Pen & Paper (Yikes!)
Automated Management via a Hosting Platform ( Shopify , BigCommerce )
Automated Management via Brick & Mortar Software Solutions
Automated Management via Ecommerce Software Solutions
The first two systems can be centralized, but are incredibly difficult to keep track of.
They also require a lot of time and energy to upkeep. Imagine penciling in every order, or updating a spreadsheet every time you made a sale or ordered more inventory.
The third system, using your hosting platform, can work if you only sell through one channel. If you only sell on Amazon, or you only sell on your online store, these systems may work just fine. However, if you want to expand into multiple sales channels, this system will hinder your business’s growth.
You also have free apps available for managing Low stock.
Notify Me: https://apps.shopify.com/mps-notify-me
The fourth system, using a software platform designed for brick & mortar solutions, is also not ideal.
Finally, using an automated inventory management system created specifically for ecommerce stores is the most ideal solution. Most of them will automatically upload your products onto your website with just push button.
Further, they allow you to automate order fulfillment and inventory quantity updating. You just enter your inventory quantity once, then it can be automated on all your sales channels from there.
Using an ecommerce software as your centralized inventory management system allows you to easily implement dropshipping services as a supplement to your store.
Or, if you’re a strictly dropshipping business , you can just sync your marketplaces with your suppliers using a data feed for automatic updating of not only stock levels, but also product details like pricing, images, descriptions, etc.
Running a successful eCommerce business in a globalised market can be difficult.
Customers are constantly looking for the lowest price, and eCommerce giants like Amazon can not be beaten at this strategy.
By implementing the right tools and focusing on better supplier relationships, smaller eCommerce stores can make processes more efficient if they hone in on sound inventory management practices, so their time and money can be used in other parts of their business.
Apps for Shipping Methods :