Running out of stock can be detrimental to your eCommerce store, impacting sales, reputation, SEO, and more. To ensure this doesn’t happen, consider Abeo Logistics’s guide on managing your stock levels effectively.
Effective stock management is crucial for various reasons. It ensures you have popular products in stock without overstocking, which can lead to storage costs and capital tied up in unsellable items.
To determine the optimum stock levels for your eCommerce business, follow these strategies:
- Understand Production Lead Times: Consider production time, shipping time, factory shutdowns, and your processing time to reorder inventory efficiently.
- Safety Stock: Maintain a safety stock to handle unexpected surges in orders or inventory delays. Calculate the right amount based on maximum daily sales, lead time, and averages.
- Use Demand Forecasting: Anticipate popular items and slow sellers by using demand forecasting, which includes economy-based and time-based methods.
For effective eCommerce inventory management, follow these best practices:
- Regular Auditing: Conduct rolling stock takes to keep updated on your inventory and related issues.
- Create a Contingency Plan: Develop a plan to address major issues like supplier problems, quality drops, or material shortages.
- Build Supplier Relationships: Forge strong relationships with suppliers for advance notice of supply issues and other benefits.
- Inventory Management System: Implement inventory management software to gain an accurate view of your inventory and automate tasks.
- Outsource Inventory Management: Consider outsourcing to specialists like Abeo Logistics for efficient, cost-effective inventory management with real-time visibility.
By outsourcing your inventory management to Abeo Logistics, you can effectively manage your stock levels while saving time and money.