The Best Practices and Tools for Online Inventory Management
Discover the three major techniques for online inventory management - forecasting demand, setting reorder points and the best tools for e-commerce optimization.
The best practices and tools for online inventory management and e-commerce optimization
As online inventory management and e-commerce optimization are essential for any business that sells products or services on the internet. In this blog post, I will share some insights from various sources on how to manage your inventory effectively, track your stock levels, forecast your demand, integrate your sales channels, and leverage technology to enhance your e-commerce performance.
According to a guide by HostAdvice ¹, there are three major inventory management techniques that are common in e-commerce:
First in, first out (FIFO). This technique assumes that the products that are purchased or received first are sold or used first. This helps to prevent stockouts and ensure product availability.
Forecasting demand. This technique uses data analysis, market research, customer feedback, and historical trends to predict how much demand there will be for a product or service in the future. This helps to plan ahead and stock the right amount of inventory.
Setting reorder points. This technique determines when to place a new order with a supplier based on the current stock level and the desired safety stock level. This helps to avoid overstocking or understocking.
However, these techniques alone are not enough to manage your inventory efficiently. You also need some tools that can help you automate, monitor, and optimize your inventory processes. According to a guide by ShipBob ², some of the best tools for online inventory management and e-commerce optimization are:
Inventory management software. These are software applications that help you track your inventory across multiple locations, channels, and platforms. They also help you manage your orders, shipments, invoices, taxes, and returns.
Inventory analytics software. These are software applications that help you analyze your inventory data and generate reports on various metrics such as turnover rate , sell-through rate , stockout rate , average inventory levels , lead time , carrying costs , deadstock , return rate etc . They also help you identify trends , patterns , issues , and opportunities for improvement.
Inventory optimization software. These are software applications that help you optimize your inventory levels by using algorithms such as ABC analysis , economic order quantity (EOQ) model , reorder point method etc . They also help you reduce costs , increase profits , improve customer satisfaction , and enhance competitive advantage.
These three techniques and tools show how online inventory management and e-commerce optimization can benefit businesses in terms of efficiency , productivity , profitability , quality , customer service etc . Businesses need to adopt these practices and tools as part of their e-commerce strategy.
I hope you find this blog post helpful for your website series on marketing and digital marketing topics related to Asia.