IntroductionFor online selling, keeping the inventory under control or inventory management is the key to a healthy business. Whether you’re focusing on one channel or going multichannel selling, inventory management tips can help you save a lot of time. It means you have more space for selling or development. The festive season is fast approaching and this means that opportunities to are at their maximum. It’s not a reason to panic. Let’s now learn 12 tips on how to improve inventory management for the holiday season!
What is inventory management and why is it important?Inventory management is the management of the company’s processing of buying, storing, and selling. With a bit of practice, you will find the perfect balance between supply and demand with a bit of practice. You will also be able to put your effort into other important business operations without compromise. Overselling, underselling, and delayed shipping could all be consequences of an inventory bottleneck. Although the consequences might look different, the effect will be the same. So, if you don’t want your competitors to lose a lot of sales opportunities, effective management of how to control inventory will be the best practice!
Multi-selling Made EasyWant to maximize your profit while minimizing effort in multi-store management? Try out LitCommerce – The Multichannel Selling Tool! LitCommerce allows store owners to list products in bulk and manage inventory effectively with little or no technical effort.
Inventory management tips for the holiday season
#1 – Just in time (JIT)The first inventory management tip for the holiday season is choosing the right time to add more items based on your customer needs. Low stock levels due to holiday season overselling are not uncommon. That’s why understanding your customer is key. If you have done enough research about customer buying habits and are confident about the next item on their shopping list, then the Just In Time inventory method is an effective tip for inventory management. You should only stock inventory in quantities that are likely to sell. This is one of the most trusted inventory management best practices that are best suited to experienced merchants.
#2 – The importance of SKUsAnother best way to manage inventory is using product SKUs. It is a unique code that allows product tracking, making inventory management simple and fast. The following will help you:
- Make it easy to distinguish the product by using a unique identifier
- You can identify individual products by slight variations.
- This saves time and effort in separating the product you need from the rest.
#3 – Find new partnersAnother inventory management tip for the holiday season is connecting and creating win-win partnerships. Brand reputation will be damaged if there are frequent stock-outs. However, partnering up with suppliers/manufacturers owning warehouses equipped with a skilled workforce in huge quantities ensures you can cater to the high demand during the holiday season.
#4 – Avoid out-of-stockIt is important to replenish your stock because sales figures are normally higher than in the previous year. Did you know that the Pandemic didn’t stop the joy of shopping? In fact, 2020 holiday sales grew 8.3% compared to 2019. Stocks of products with attractive offers are more likely to be sold quickly. These are hard-to-resist offers for customers. You should have enough inventory in your warehouse if you are going to offer similar offers. Also, you can avoid out-of-stock situations and you won’t lose sales. This way, inventory management best practices will be much more seamless and simple for you.
#5 – Inventory competitive analysis trickCompetitive research can help you identify which products your competitors are running out of. You should ensure sufficient stock levels for those products. Remember to keep an eye on your competitors. This will allow you to see when they run out of stock. The best time to list these products in your store and place ads for them is when they are out of stock. Customers are always looking for alternatives and Google ads will help them find your store. Even a 10% discount can make your store a more lucrative option. Your greatest advantage is the fact that you don’t run out of stock while your competitors are dealing with the item because there isn’t enough. As a result, your store will be trusted by the customer as a rescuer in difficult times.
#6 – Restock your inventoryOnline merchants are busiest during the holiday season. Restocking is an essential task to avoid inventory shortages. This is why holiday store owners need to act quickly and have responsibility for it. You are the only one who knows the most about your high-priority products. Imagine that you are offered stock by a vendor. He or she will hardly understand your priority and act his way which might not benefit your store at all. If you find yourself in a situation where your warehouse is not full of the correct stocks. You might have to return it or reorder what you need.
#7 – The reorder pointThere is a minimum stock level for each item in the warehouse. Once it reaches this point, it’s time for new inventory to be ordered. This means that you don’t have to wait for the stock to replenish or refuse customers, nor do they need to wait for it to replenish. Benefits of Reorder Point
- Accurate forecasting
- No more Out of Stocks
- FOMO (fear of missing out on) can lead to excessive inventory purchases and large spending.
- Insufficient stock can lead to sales losses.
- Shopping during the festive seasons can be stressful. The worst-case scenario could result in a lot of negative reviews.
#8 – Warehouse managementThe warehouse facilitates inventory management by providing accurate inventory tracking and quality control. It can be difficult to maintain the system and keep it in place during holiday season rushes. Hence, you need to put more effort into keeping it running smoothly by focusing on the following parameters.
It is important to choose the right locationYou can save time by having a warehouse located close to your supplier’s manufacturing facility. It will be a great help so you can always stay informed about your inventory. It is important to order the inventory in time for customers. This gives staff enough time to organize it. It will therefore be ready for shipping as soon as possible.
Keep it organizedIt makes your warehouse easy to navigate. This is essential for reducing inventory load-unload times. Hence, keep all slow-moving inventory in a convenient location.
There is no other option than to experienceConsider hiring experienced personnel to manage your warehouse or oversee operations during the holiday season. If there are only a few people in the warehouse, it is more likely that order processing will be slow and boring. Your business’s reputation will suffer. Although it is often overlooked, it is an important factor to consider. For accurate inventory tracking and quality control, you can develop manufacturing software for your company.
#9 – Communicate with suppliersThis is an interesting tip for inventory management for holiday seasons that you can use for your store: ensuring that your suppliers are available for goods delivery. If you are planning to order 2X-5X more products than usual due to holiday demand, Inform the supplier about this in detail. This will help you avoid possible out-of-stock situations when holiday shopping. Your business will benefit from maintaining good relationships and frequent communication. You must consider the critical role of suppliers to ensure timely delivery.
#10 – Demand forecastingAll store owners should have the ability to analyze buyer buying patterns and break down products by year. The following insights are provided by it (Let’s say that your target product is X). This will help you determine if X is worth buying or not. It will also help you to identify the best and worst performers. This allows you to easily determine how much and what should be retained.
Notice your customer locationThis will allow you to choose the most suitable warehouse location. Also, it enables you to purchase it at a better place, which will decrease shipping time. It is an excellent practice in inventory management.
Find out the Top In-Demand ProductsThese are products that can be purchased at high prices and without discounts. Try to put effort into research and testing, you can create a list you can use to increase your ROI without needing to wait for marketing campaigns or invest too much. Just some profitable products can bring you more than you expect. Apparently, this is one of the hardest parts of the game. High-demand product discovery is not just happened. You need to dick deeper into your market niche and test multiple times. And with the right investment, the right product will come to you soon. It’s not an easy job yet you can speed up the process by making wise decisions. For example, save time for management and reduce a huge amount of repetitive work by using a multichannel selling tool.
Benefits of inventory demand forecasting
- Zero-order delays result in satisfied customers
- Establish a loyal customer base
- As minimum as possible inventory idle time.
- Buffer stock is not as important.
- Reduces financial risks.
- Optimized resource allocations
- Facilitates efficient pricing strategies
- The right time is the best to increase warehouse production.
#11 – These are the best products! These are what customers want!
Two things to keep in mind
- First, it isn’t worth the small price. Don’t worry about running out. Stock that hasn’t been used or that is on sale will attract more customers.
- Second, remember to always offer a discount – Discounts are always attractive, let’s face the facts. You can get essential items (not desired) at a discount price.
#12 – Anticipation inventoryOur last inventory management tip for the holiday season is to create your own inventory. Having an anticipation inventory keeps your company ahead of the rest. This allows you to manage fluctuating customer buying patterns during holidays. A warehouse will enable you to keep enough inventory to anticipate customer demand even if forecasting or analysis fails. This sounds fantastic for rescue inventory management best practices. An advantage to having an anticipation inventory is the ability to plan ahead. You won’t be as surprised as others or regret not being prepared. This is the most important holiday season. Other issues should not be overlooked. Even though everything looks fine, random physical counting (at least for most in-demand products in your shop) will increase your security. You’ll be able to accept orders with confidence.
Inventory Management Tips: FAQs
- What is inventory management?
Inventory management is the management of the company’s processing of buying, storing, and selling. Click here to read more about effective inventory management techniques.
- What is the best way to manage inventory?
Here are 12 important tips for store owners to manage inventory:
#1 – Just in time (JIT)
#2 – The importance of SKUs
#3 – Find new partners
#4 – Avoiding out-of-stock
#5 – Inventory competitive analysis trick
#6 – Restock your inventory
#7 – The reorder point
#8 – Warehouse management
#9 – Communicate with suppliers
#10 – Demand forecasting
#11 – These are the best products! These are what customers want!
#12 – Anticipation inventory
- How do you keep track of inventory?
The best way to manage inventory is to choose the best inventory management software to save your time developing your merchandise and focusing on taking care of your customers.
With LitCommerce, you can manage your multiple stores with a single dashboard, which helps you to bulk list and manage the inventory of all your stores easily, and especially to have the best preparation for the season. upcoming festival.