19 Jun E-commerce made easy: 5 tips for inventory management
Inventory is one of the most crucial aspects to get right when running an e-commerce business. Here are our top 5 tips to get it right:
#1 GET THINGS ORGANISED
Print out your inventory list and make sure it is up-to-date with all the relevant details. Delete old items, update count and make sure it works reliably for you.
#2 UNDERSTAND PROFITABILITY
Make sure you track the cost of each item that you purchase and the price that you sell it for. It is critical to reach sufficient gross margin to ensure your business survival
#3 BE A DATA DRIVEN BUSINESS
Based on data such as supply, demand, inventory levels, turnover, pricing and costs, you can make better business decision on order management. The better your business data is, the smaller your business needs for working capital financing.
#4 FOCUS ON EFFICIENCY
With today’s digital revolution, staying efficient has never been easier. Using cloud based tools for inventory management, such as Tradegecko or DEAR, and syncing that with your cloud accounting system such as Quickbooks or Xero can eliminate a lot of the errors and hours spent on back office stuff.
#5 CREATE A ROUTINE
You do not have to write a 100 page manual but keeping a basic process and checklist in place can make the process of inventory management a lot more stress-free and easy for junior staff. Depending on the complexity and volume of your business, you can create a daily, weekly or monthly routine on managing that.