The new marketplace for all brands, irrespective of their category is online space. Today there is no better way of increasing the visibility of your product, than opening an online store where customers can see your products, compare them with other manufacturers and order them on the spot. Merchants find e-commerce as a cost-effective medium to promote and see their products.
However, to build a sustainable and profitable online selling business, it is very important for manufacturers and creators to understand how to manage their inventory. Making the wrong choices, while deciding your inventory can be a roadblock in your online journey. On the other hand, if you can manage your inventory effectively, then the profits will definitely be immeasurable.
So, let’s see a few effective ways of managing online inventory in order to limit wastage and optimize Profits:
Measure the Market for Your Product
If you are going to set up your brand-new online store, then the starting point for you should be researching your market space. Study the market for your products, see how products from other brands in the same category are performing. Also, study their demand structure. Notice if the demand increases during a particular season or time. You can also make use of Google Analytics to see the search volume of products and categories as per audience and geography. These are a few things that must be done, after setting up your online store.
Analyze the past Sales to Plan the Future
Now that you have done your initial study, it’s time to optimize your inventory by analyzing your past sale to decide the future inventory. Also, evaluate the month when the product sale is at the highest and the lowest. Next look for reasons that justify the rise and fall of demand. Now based on your analysis, you can keep your inventory ready for the near future.
Imagine there is a high demand for your product, but the stock is not adequate to fulfill the orders, in such situations, customers do not like waiting, but they instantly switch over to your competitor. Therefore, it is always advisable to maintain a minimum stock level. Remember to keep an only minimal inventory that can comfortably manage the ongoing demand.
Be Ready for Seasonal/Festive Orders
The holiday season is a time when most people come to shop, so always keep your stock ready to manage the seasonal or festive time demands. Also, design a few attractive offers and deals, that can attract a lot of buyers to your site, during this season.
Adapt an Easy-To-Use Software
Do not adopt the manual paper and pen method to manage your inventory, rather try out an inventory management software that can automatically keep a record of your stock and manage them effectively. If you are a small business, then QuickBooks Manufacturing software can be of great help. It can keep track of incoming goods, outgoing stock and the stock in production. Additionally, you can also generate automated reports from time to time, to study the inventory flow pattern.
Recent e-commerce research says that every minute more than 1000 products are being sold online. Online selling potential is growing by the minute and thus for merchants and manufacturers, there is no better marketplace than the online space. So, take care of your inventory and manage it well. The demand for your product should always be fulfilled by prompt delivery. That’s the secret of online success. Remember, one happy customer is equal to 10 new customers.