E-commerce is one of the most famous ways in which you can make money from the Internet, and frankly any online store will need to achieve a set of conditions or pay attention to a set of points in order to achieve the largest number of sales and the largest profit.
Unfortunately, there are many websites or electronic stores that make a set of errors that cause them to fail, and one of the most famous of these errors is the inability to apply an e-commerce store management system.
In this article, we will learn about what is e-commerce inventory management, what are the steps to manage e-commerce inventory, and the best strategies for managing e-commerce inventory.
What is Ecommerce Inventory Management?
E-commerce inventory management, or known as Ecommerce Inventory Management, is a process concerned with monitoring the number, places and prices of products for e-commerce, and is also concerned with the marketing mix of products, or in short, supply management.
By managing e-commerce inventory, you will be able to quickly and easily determine whether your inventory is good and suitable, less than your needs or more, and also allows to modify business processes quickly, easily and efficiently.
Inventory is one of the most important and important assets for your own project, which you can always think about deferred investment after sales, and according to everything we have referred to so far, inventory or inventory management is a sterile problem for many people and many of their competitors.
When you manage inventory poorly, you are likely to be exposed to many risks and financial problems, and this makes it necessary to reach a good inventory management system strategy.
Steps to develop e-commerce inventory management
There are several steps to inventory management that you should know, so that you can manage and develop your e-commerce inventory, including:
1. Product Demand Analysis
The demand for products is the desire of customers to buy products and services at a specific and specific price, which is a necessary economic and basic factor that controls the returns of companies, businesses and project owners.
Understanding the demand for your products will enable you to target the right audience, set the right price, and make good sales.
Analysis of demand for products is a necessary and essential step that you must pay close attention to, especially if you are going to sell and introduce a new new product in the market.
In most cases, you will need a set of tools to identify the search rate on each product through Google search engines by using a tool, Google Trends or keyword planner in order to identify popular and required products online.
2. Anticipate future product demand
Forecasting product demand is one of the very important processes in order to predict the future of your products and future demand for them and estimate the demand for the products or even services you sell, using predictive analysis based on past sales data.
Frankly, this step may be a bit complicated, and for many, it depends on the previous data of your sales, and this forecast will often not be completely accurate, but it will be practical and facilitate some of the most complex things, and you will be able to build strategies on it for inventory management, which we will learn about in the following article.
3. Maintain minimum supply
The third step is to maintain the minimum offers, and when we say the minimum offers, we mean the number of products for the guideline and also for the minimum or minimum number of products offered, which should not allow less than the supply of materials.
4. Prioritize products
In this step, it is necessary to choose the products or properties and activities that will be carried out by the engineering and special product management teams, and it is necessary to focus on them and make them first and foremost for you.
In order to determine your initial needs, you will need to divide the products into three categories: high-value products, mid-value products, and low-value products.
5. Ready for upcoming seasons
In the fifth plan, you will need to prepare for the upcoming seasons, such as the mid-year, vacation, etc., it very significantly determines the upcoming increase in demand for products, which are the times to prepare for by making sure that your own stock is ready for products that have done well in the past year.
Strategies for Ecommerce Inventory Management
In this particular axis, we will learn about some of the best strategies for managing e-commerce inventory, there are several strategies that you should learn about regarding e-commerce inventory management, including:
Strategy 1: FIFO Pricedence
The first strategy is FIFO, which is an abbreviation for (First In, First Out) and is considered among the most important strategies for managing e-commerce inventory, and the most used ever.
It is a strategy based on making sure that older products are in stock (First In) and that are first sold first, not by selling new products in advance.
This strategy is very important in helping to deal with products that spoil quickly or expire.
This strategy will greatly help you deal with products that have a certain expiration date or can spoil.
Strategy No. 2: Priority ABC prioritization
We have now come to the second strategy, which is ABC prioritization, which helps manage e-commerce inventory by value and its impact on your income.
Where you start searching for evaluating products according to their value within your inventory, depending on their profitability, and the products or inventory are divided into three categories, namely:
- Category A: Responsible for 75% of your profits or income
- Category B: Inventory percentage responsible for 15% of your profits and income
- Class C: Inventory percentage responsible for 10% of your income
Strategy No. 3: LIFO Exit Precedence
This strategy is quite the opposite of the former, as it always makes sure that the newer or last in products are the ones that are already sold (First Out).
Strategy No. 4: Real-Time Inventory Management (JIT)
The fourth strategy on our list, the JIT strategy, is an abbreviation for Just-In-Time, which is explicitly not for everyone, but for people who are brave and can take risks.
In this strategy, you store the minimum amount of products that fulfill your operations, and it is necessary that you compensate for it before any item goes out or sells from the inventory.
Strategy No. 5: Predict accurately
The fifth strategy, which is the accurate forecasting strategy, or known as Precisely forecasting, is a very good strategy that will enable you to manage your inventory, as it controls inventory according to the number and quantity of orders you expect.
In conclusion, I hope that you have taken even a little information about e-commerce inventory management, for more information, I advise you to visit our blog, win net.
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