Do you find yourself struggling with e-commerce inventory with your e-commerce business?
So now we gonna talk about 10 ways , an e-commerce inventory tools can solve the most common inventory issues.
1. The first thing i wanna talk about is Visibility :
Many e-commerce brands struggle to keep a handle on their e-commerce inventory—knowing where it is, what’s been ordered, what’s in stock, what’s available, what’s committed to existing orders, and which items are in which warehouse. An inventory management solution offers great visibility into all these aspects.
By prioritizing visibility in e-commerce inventory management, businesses can gain a competitive edge in today’s dynamic eCommerce landscape, ensuring efficient operations, satisfied customers, and sustainable growth.
Running an e-commerce business entails its fair share of challenges, particularly in managing e-commerce inventory. Here, we’ll discuss ten ways in which inventory management tools can address the most common inventory issues faced by e-commerce brands.
2. The second one is Forecasting :
Inventory management software can play a significant role in the forecasting process for businesses. While it may not function as a traditional forecasting tool predicting future sales, it offers invaluable support in managing critical aspects such as lead times, stock levels, and reorder points. Some advanced tools even factor in velocity, representing the rate at which products are sold.
Velocity, essentially the speed of product turnover, holds crucial insights for businesses. Should a product suddenly experience a surge in sales, the software can promptly alert you to adjust your reorder points accordingly. This proactive approach ensures that you can efficiently manage e-commerce inventory levels, minimizing the risk of stockouts and optimizing inventory turnover.
3. The third thing is Product Costs :
You have the ability to manage product costs outside of an inventory management system. However, it will never offer the same level of accuracy, visibility, or flexibility as an inventory management system. Unlike a static spreadsheet, an inventory management tool allows you to update product costs every time a new purchase order is placed ande-commerce inventory is received, ensuring that your costs remain up-to-date.
This feature streamlines tasks such as calculating the cost of goods sold (COGS) and evaluating the ending balance of your e-commerce inventory, making them easier and more accurate.
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4. Process change :
Especially if you’re transitioning from a periodic to a perpetual e-commerce inventory system, aiming to gain real-time insights into your e-commerce inventory, inventory management software becomes indispensable. It not only facilitates this transition but also aids in establishing the necessary processes to seamlessly implement the change.
Inventory management software serves as the backbone for this transformation, providing the tools and capabilities needed to track inventory movements continuously. With its support, businesses can accurately monitor stock levels, track sales in real-time, and maintain better control over their inventory management processes.
5. Product Master :
This functionality proves particularly valuable when managing sales across multiple channels. With an inventory management system in place, you can seamlessly update all channels in real-time.
For instance, if a product sells out on Amazon, the system will instantly update Shopify to reflect the depleted availability of that item. This capability not only prevents overselling but also saves you significant time by automating the constant updating of channel quantities.
By centralizing inventory management and synchronization across various sales platforms, businesses can streamline operations, reduce errors, and enhance the overall customer experience.
6. Precision :
Inventory management software provides businesses with enhanced control and precision when executing sales and purchasing processes and tasks, especially regarding placing purchase orders and managing payments. By storing all product information, pricing details, vendor data, and other relevant information within the system, it offers a comprehensive audit trail of all transactions.
When ordering products, users benefit from reduced time spent searching for information as many details are prepopulated within the system. This not only streamlines the ordering process but also minimizes the risk of human error. With better control and automation, businesses can optimize their operations, improve accuracy, and ensure smoother procurement processes.
7.Streamline Processes :
An inventory management solution plays a crucial role in streamlining processes and increasing efficiencies across various operations. Take, for instance, the pick, pack, and ship process. e-commerce inventory solutions not only track costs but also significantly aid in warehouse management and fulfillment, especially if you’re managing these tasks internally.
Alternatively, if you opt for third-party logistics (3PL) services, the inventory management solution can seamlessly integrate with these providers. This integration offers improved visibility into sales orders being fulfilled on your behalf, providing real-time updates on the status of orders and inventory levels. This visibility empowers you to stay informed and in control of your operations, regardless of whether you manage fulfillment in-house or through third-party partners.
8.Operational Support :
An inventory management solution offers comprehensive operational support across all facets of your business processes. From purchasing and receiving into the warehouse to maintaining precise e-commerce inventory records and understanding sales channel dynamics, it provides invaluable assistance.
This support extends to enhancing visibility for sales channels, ensuring accurate availability information for incoming sales orders. Additionally, it empowers businesses with better control over pick, pack, and ship functions, optimizing efficiency and reducing errors.
Overall, an inventory management solution serves as a pivotal tool in streamlining key operational processes, enabling businesses to manage every aspect more effectively and efficiently.
9. Reporting :
Inventory management software provides significantly enhanced reporting capabilities compared to traditional tools like QuickBooks or spreadsheets. This is because the software collects data throughout the entire sales process and accurately captures the cost of goods sold associated with each order.
One of the unique features of inventory management systems is the ability to generate reports on profitability by sales order, SKU, or sales channel. These insights are not readily available elsewhere and provide invaluable information for decision-making.
By offering detailed and tailored reporting, inventory management software empowers businesses to make informed operational and strategic decisions. This better understanding of profitability across various aspects of the business guides effective resource allocation and drives overall business success.
10. Increased Efficiency -> Decreased Inaccuracy :
Implementing an inventory management solution is crucial for e-commerce businesses seeking to overcome common inventory challenges and achieve sustainable growth in today’s dynamic market landscape.
One significant advantage of utilizing an inventory management system is its ability to increase efficiencies and decrease inaccuracies compared to manual methods like spreadsheets. Processes reliant on spreadsheets are inherently prone to human error, leading to potential discrepancies and inefficiencies.
Within an inventory management solution, all essential data, including product details, SKUs, costs, vendors, and sales orders, is automatically pulled in. This automation eliminates the need for manual data entry, saving time and reducing the risk of human error associated with manual inputs.
By transitioning to an inventory management solution, businesses not only streamline their processes and save time but also mitigate the risk of inaccuracies. This shift allows companies to focus their efforts on strategic initiatives and growth opportunities, driving overall business success.
