WHY DOES SELLING ONLINE DEMAND PROPER INVENTORY MANAGEMENT?
Updated: Jul 3, 2018
Everything revolves around the customer when we sell online; hence inventory management too assumes great significance as it has everything to do with the customer. Customer satisfaction and proper inventory management have a strong link. Let’s put it the other way, the distance between customer satisfaction to company profitability is just a step away.
Let’s understand why we need to get this right:
When customer purchase online they want to know the availability status of the product. Inventory management can tell them at once and indicate on how much is left in stock.
Online customers don’t want false commitment when they make a purchase and get disappointed afterwards. Hence a precise and accurate inventory management tells reality up front and protects your company’s reputation.
You want to avoid overstock. Housing or making more than what is the current demand means holding money that could be rotated otherwise for further profit.
At the same time you want to avoid under stock. Again we want the accurate information to be with the customers about stock-outs, but we need to keep in mind that our online competitors might grab the opportunity.
Financial administration is significant to keep companies buoyant. Inventory management keeps a vigilant watch on our company’s incomings, outgoings and cash flow.
Next question is how do we execute this?
Software plays a crucial role in online sales. To be ahead of competition while selling online, inventory management should have the right software. While marketing, advertising and purchasing are visible to online customers, inventory management apps are what is behind the scenes. They let us sort, store, track and manage stock. Additionally, it also helps us control assembly, transport, and shipping to ultimate destination. As software apps, they also help in automation, mostly for repeat orders to suppliers when stocks go lower than a particular level.
Inventory management apps for online sales
Integration with your eCommerce site means accurate information on product availability for online customers, including the stimulation, that is, spur to buy, such as “Only three left in stock!”
Once a purchase is made, the inventory management app at once renews the inventory information to avoid selling the same product twice. Tracking and tracing functionality lets you screen delivery times along with setting the right customer expectation.
Overstocking not just leads to a stress of having to get rid of more stock than you can sell in the short term but demands storage cost too. Hence, capacity management keep storage costs under control.
We have pre-defined levels and alerts in the app for alerting us about low stocks, or routinely ordering to tap benefit of batch volume discounts from suppliers. Hence, under-stocking as a result of oversight or forgetfulness is avoided.
Reporting trend and sales data helps us increase profitability and sketch out customer demand. The product return statistics can additionally help us work on our cash flow.
It limits losses through breakages or internal theft.
Optimizes shipping charges as you can openly identify the most approving rates from some of the well-known shipping and courier services.
To conclude, it’s impossible to keep accurate track of product inventories by hand. Proper inventory management with an appropriate software solution is the trick to grow.
We at KreateKonnect help you manage and choose the right inventory management software for your company. For more information and to contact us, log on to our websitewww.kreatekonnect.com