Managing inventory is a bit like juggling—it looks easy when you watch someone else do it, but it’s easy to drop the ball when you try it yourself! But with the right approach, there’s no reason tracking inventory can’t be straightforward and stress-free. Also, like it or not, it’s a skill you must master. Why? Because in the competitive world of ecommerce, effective inventory tracking isn’t just a nice-to-have feature. It’s a necessity.
In this guide, we’ll reveal how to keep track of inventory for small
This is one of the most direct and personal ways to phone number library communicate with potential clients. Additionally, automated SMS notifications can be used to follow up on customer inquiries, confirm appointments, or alert customers about limited-time offers, enhancing customer engagement. That allow you to handle multiple sales channels simultaneously, preventing overselling.
Business operations and growing enterprises alike. So, join us as we take a whirlwind tour of inventory tracking methods and best practices, and outline how you can put them into practice on the most popular ecommerce platforms. What is inventory tracking? In a nutshell, tracking inventory involves managing and monitoring the quantity and location of all of your stock items. The primary goal from a customer-facing perspective is to help shoppers find what they’re looking for—preferably without being on the receiving end of a disappointing “out of stock” message. From a business perspective, monitoring stock levels and managing orders more efficiently helps you to understand: What products you have on-hand. What needs to be reordered.
How to optimize stock levels. The bottom line?
Tracking inventory correctly makes it easier to maintain smooth operations, meet customer demands, and hit your revenue and customer satisfaction goals.
Why is inventory tracking important?
Accurate inventory tracking can make or break your ecommerce business. That’s a cold, hard fact. Yet, 43% of small businesses fail to monitor inventory. Here’s a comprehensive list of the bottom-line benefits you’ll gain once you learn how to countless optimization tools and techniques to choose from track inventory like a pro:
- Reduce stockouts: Failing to have the items shoppers want leads to lost sales and missed opportunities, harming your brand reputation.
- Prevent overstocking: Holding excess stock ties up capital and wastes money on unnecessary carrying costs.
- Improve cash flow management: Knowing the exact value of your on-hand and in-transit inventory at all times helps you make smarter purchasing decisions.
- Boost customer satisfaction: Providing accurate inventory information ensures customers get the products they want every time, without delays.
- Get more business: Happy customers become repeat customers who generate even more revenue through recommendations and referrals.
- Analyze business performance: Up-to-date stock insights enable better decisions about inventory investments and pricing strategies.
- Enhance preparedness: Setting the right safety stock levels and reorder points ensures you’re ready for seasonal fluctuations and holiday peaks.
What are the different methods for tracking inventory?
Tracking inventory properly is essential. However, how do companies keep track of inventory? This task can be challenging, especially for businesses selling across multiple sales channels. There’s no one-size-fits-all solution; different methods suit different business sizes, types, and complexities. Here’s a rundown of traditional and automated inventory tracking options. Whether you’re a small startup or scaling enterprise, understanding these methods will help you choose the best approach for your needs.
- Manual inventory tracking: This involves keeping tabs on your inventory by hand. Though it may seem simple, manual tracking comes with many challenges. It can work for small operations but is not feasible for growing ecommerce businesses. The drawbacks include a significant risk of loss or damage, potential inaccuracies, and a lack of real-time data.
- Using spreadsheets (Excel): If you’re starting out, you can track inventory in Excel by creating columns for SKUs, product names, quantity on hand, reorder level, and supplier information. Update your spreadsheet every time you receive or sell stock. However, manual input increases the chance of human error, and spreadsheets become time-consuming and prone to data loss as your business grows.
Automated tracking
As your ecommerce business scales and you begin sale leads selling across multiple channels, dedicated inventory management software becomes essential. Automated systems solve the major issue of manual inventory tracking—how to track stock in real-time. For example:
- Real-time updates: Automated updates ensure reliable access to accurate inventory data, helping you respond quickly to customer demands.
- Automated reordering: Reorder points notify you when it’s time to restock, so you never run short when demand spikes.
- Reporting and analytics: Data analytics dashboards reveal insights on sales trends, inventory turnover rates, and campaign effectiveness.
Case Study
Automated inventory systems have enabled companies like Chrome Battery to streamline operations and save $300,000 annually by improving order fulfillment time by 87.5%.
Integration with ecommerce platforms
To succeed in ecommerce, you’ll likely need to sell on multiple platforms. Research shows that shoppers exposed to multichannel marketing spend about 10% more, and those using multiple channels have a 30% higher lifetime customer value.
At Core, we make inventory management straightforward. Our integration system provides:
- Effortless channel integration with platforms like Shopify, eBay, and Walmart to keep inventory data consistent across all sales channels.
- Dashboards that offer access to all your inventory information in one place, simplifying stock level, order, and shipment management.
- Management tools that allow you to handle multiple sales channels simultaneously, preventing overselling.
Best practices for tracking inventory in ecommerce
As your business grows, the methods you use to track inventory should evolve with you. Here are some strategies to ensure you can respond quickly to market changes and keep your operations running smoothly:
- Real-time tracking: Real-time updates are essential to avoid overselling or underselling, which frees up time to focus on growing your business.
- Regular audits: Regular inventory audits help you reconcile actual stock with recorded inventory, spot discrepancies, and address issues before they become significant problems.
