Better Inventory Management, Better Profits

August 22 2018 IN Amazon Better Inventory Management, Better Profits

Better Inventory Management, Better Profits

Being a successful online merchant requires much more than just a desirable product or service. You might have a more impressive selection of goods than any of your competitors, but you risk falling short if you lack one critical component: proper inventory management. In short, inventory management entails more than just selling products; it also involves the storing and processing of those products as well. If this sounds at all intimidating, do not fear. Read on to learn more about inventory management--its basic principles and pitfalls, as well as basic tips that will help you stand tall among your inventory rather than be crushed by it.

Inventory Management Basics: The Truth about Overstocking

 Think of your inventory as a very large but cluttered closet. That closet may boast enough clothing and shoes and accessories to keep even the ficklest fashionista satisfied. But what good is any of it if the closet’s owner does not know where anything is and instead keeps letting things pile up inside it?

When it comes to inventory management, it is also possible to have too much of a good thing. Here’s why:

  1. Someone has to pay for all that merchandise to take up room--and that someone will be the poor exasperated seller.
  2. Hot items usually don’t stay hot forever. Capitalizing on a trend may reap great rewards early on, but this is rarely a safe business strategy long-term. The last thing you want is to be bogged down in a sea of products consumers no longer want.
  3. Sometimes a product’s popularity depends on the time of year. For instance, a seller will have no problem getting rid of stylish backpacks once September rolls around. After that, however, moving those backpacks will be more difficult.

Inventory Management Basics: Understocking Dilemmas

While some sellers get over-ambitious and buy too much stock, others fall into the habit of understocking. Here are some reasons why understocking can hurt a seller’s bottomline:

  1. If you use more than one channel to sell products, understocking can be particularly risky. The more often you sell out, the more likely these major players will lose interest in doing business with you.
  2. Most sellers would agree that their customers keep their business thriving. If you do not have what your customers are looking for, they will likely seek it elsewhere.Understocking too often will only keep those customers leaving you for better options.
  3. This last one may be obvious but is perhaps the strongest case against understocking: poor profit potential. Sellers who can never meet the demandof their products never reap the profits they hope for or need to stay in business.

Want to expand your sales reach and customer base?
Try Listing Mirror Risk Free for 14 Days!

Schedule Call Now

Sell More. Work Less.

In Conclusion: 5 Tips for Optimal Inventory Management

1. Consolidate for easier management.

Selling on more than one platform can get overwhelming fast. What if you completely overlook your Walmart inventory and as a result oversell? Fortunately, a multichannel management software like Listing Mirror can ease your worries by keeping your inventory for all channels easily traceable from one source.

2. Establish par levels.

If you have a tendency to underestimate how much stock you need, consider establishing par levels to keep in check. In other words, what is the least amount of stock you can have on hand to adequately meet demand? To determine this, look at previous sales trends.

3. Plan Ahead

If you know demand for your product reaches its peak at a specific time of year, plan for it ahead of time. Know how much inventory you need and have it ordered before you get hit with more orders than you can fulfill.

4. Use your numbers to predict future sales.

By using past sales to predict what the future may hold, you reduce your risk of getting too ambitious and as a result overstocking. Concrete data speak the truth.

5. Keep in touch with your suppliers.

If you know that a particular time of year is busy for you, make sure that your suppliers know it as well. That way, they can be sure they have your order in place and to you before the season rush begins.

Sell More. Work Less.

Need help managing your inventory? Listing Mirror is a multichannel management software that keeps all your channels in one place for the ultimate peace of mind.


Enable your business to do more, with less!
Become a Multi Channel Pro!

Latest Posts

How to Reduce Operational Costs of Your Ecommerce Business

March 8, 2019

Selling on Amazon and eBay and Other Marketplaces!

March 5, 2019

Using Amazon Multi Channel Fulfillment for eBay

March 1, 2019

Sell More on the Walmart Marketplace

February 26, 2019

How To Sell More On eBay!

February 21, 2019

Is Amazon MCF Right for my Business?

February 19, 2019

Why You Need Order Processing Software for Your Ecommerce Business

February 13, 2019

10 Tips for Better Amazon Inventory Management

February 8, 2019

The Best Listing Software for eBay and Amazon

February 4, 2019

The USPS Postage Rate Increases for 2019 and Online Retailers

January 31, 2019
Sell More. Work Less.

Sign Up Now!



Even More Posts
What is Google Shopping Promotions and How to Use It
January 29, 2019
Increase Your eCommerce Conversions With More Media
January 23, 2019
Setting Ecommerce Sales Goals in 2019
January 21, 2019
International Multi-Channel eCommerce: What You Need to Know
January 17, 2019
Selling on Multiple Marketplaces
January 15, 2019
Amazon Sellers Event/Meetup ASGTG 2019 - Listing Mirror on the Road!
January 11, 2019
Prosper Show 2019 in Vegas - Listing Mirror on the Road!
January 10, 2019
Multi-Channel Inventory Management for Ecommerce
January 5, 2019
Want to Increase Your Amazon Sales?
January 4, 2019
Using Social Media to Boost Your eCommerce Sales
December 26, 2018
What Pro Amazon Sellers Know: Amazon Hints and Tips
December 18, 2018
Why Multi-Channel eCommerce Matters
December 12, 2018
5 Critical Things Every Amazon Seller Should Know
December 6, 2018
The Past, Present, and Future of Multi-Channel eCommerce
November 27, 2018
Why You Should Sell on Walmart Marketplace Now
November 19, 2018
Boost your Sales, with ease.

Sign Up for Demo!