Every business has the need for some type of inventory system if they offer products. This can be done in different ways and then depending on the size of the company and the number of products it can be simple to track inventory, or it can be extremely complicated. Technology has been a friend to the business owner in some respects with programs to keep track of inventory. One of the places that this technology is essential is the ecommerce business.
Why a Good Inventory System is Essential
Having a good inventory system is essential, so that the business owner can see what is selling and what products are not selling. This avoids loss of income from overspending on products that do not sell good and then having the ability to keep products in stock that are fast sellers. This is crucial for the ecommerce business since this company has the potential to reach many more potential customers than a brick and mortar business. Even if the company only ships to specific countries the customer base can be large and include first time customers. If the ecommerce inventory management is not able to keep accurate information on the existing inventory there is the risk of being sold out. This can cause a company to lose business since the potential customer will find another company offering the same product.
Why Manual Inventory Management Doesn’t Work
Manual inventory management may be fine for a company selling one product. But even with one product, the ecommerce business can find without a proper inventory system they run short. This is because with the online business products are being sold on multiple channels and there is an untold number of ways customers can find the product. The brick and mortar business model is easy to know how customers find them. Word of mouth and local advertising, however, with the ecommerce business there are many ways. Online there are numerous social media platforms, product reviews, blogs, banner ads, websites the owner reviews products and of course the potential customer using a search engine. This opens up the ecommerce site to a number of customers from different methods of learning about the seller and product they offer.
Selling Ecommerce Products
This is another reason to have a proper inventory system because of the way products can be sold. Online products can be listed on the company website; however, they can also be sold on other platforms such as Amazon, Esty, eBay, Shopify, and others. This is a benefit for the company profit line, but it also means reaching even more customers that may not have found the product on the business website alone.
It also means having an inventory that can keep up with projected sales, while also not stocking the inventory with products that aren’t selling as good as the top sellers. Ecommerce is a different type of business than the local shop that offers to only the local or occasional visitor, which means it also requires the best method of tracking inventory.