Best Practices for Online Inventory Management
Online inventory management can make or break your eCommerce brand. Successfully managing inventory means you’re able to quickly and accurately fill orders, keeping customers satisfied and coming back for more.
But a poor inventory strategy leads to back-end disasters: inaccurate fulfillment, slow shipping speeds and ultimately, unhappy customers that have negative perceptions of your brand. The good news is that avoiding these issues is easy – you just have to know where to start.
How to Improve Your Online Inventory Management Strategy
Strong inventory management skills are essential for growing an eCommerce brand, so it’s important to understand best practices for keeping inventory running smoothly:
- Real-Time Inventory Tracking – Maintaining and tracking inventory in real-time enables you to keep your eCommerce site up-to-date, accurately reflecting products that are in and out of stock. You can also more effectively manage warehouse product levels, stocking the right amount of products instead of carrying too little or too much inventory.
- Understand the Velocity of Goods – Velocity is simply a measure of how quickly a product is sold after it’s stocked in your warehouse. Knowledge of inventory velocity allows you to make more informed purchasing decisions. For example, if a product hasn’t sold and is taking up valuable warehouse space, you can liquidate remaining units, and replace the storage space with in-demand items that fly off the (virtual) shelves.
- Report, Report, Report – The ability to continue working on your online inventory management strategy hinges on your ability to understand and identify areas that could use improvement. Reports are an excellent tool for looking at in-depth inventory analytics and determining how well certain processes are performing. Gather information on things like average number of orders placed, current orders in process, shipping costs and yearly profit margins.
Effective inventory management is a puzzle. The pieces must come together correctly to avoid a jumbled mess. Your best bet? Partner with an eCommerce fulfillment and logistics partner that can solve the puzzle for you.
At Dotcom Distribution, we understand online inventory management. Using a careful mix of experienced personnel and the latest in warehouse technology, we streamline inventory management for your eCommerce brand. We’ll help you keep track of warehouse product levels, send you automated updates when it’s time to restock items and create shareable reports that provide actionable insights.
Your inventory management is about to get that much better. Contact Dotcom Distribution today to learn more.