Inventory management comprises the processes and activities between the moment you create a purchase order (or place purchase demand if you work on CargoZone 😊) and the moment you sell it to the final customer. Small tweaks to inventory management can have a big impact on your bottom line—for better or for worse. Done well, inventory management can boost sales. Missed opportunities, on the other hand, can mean lost revenue.
First, let’s define what inventory management is?
Inventory is the product stock you own and plan to sell through your eCommerce business. Inventory management is the process of tracking and storing products to meet customer demand quickly and efficiently. It applies to how you source, store, and process products to get them ready for sale.
Make no mistakes; inventory is an investment. The results of poor inventory management may not show up for weeks or months. It can be ugly when they become apparent: spoiled products, deadstock, high storage costs—or worse, depleted stock and unfulfilled customer orders. Additionally, storage fees and holding costs can decrease profitability.
Why is inventory management important?
Product stock on hand is an important business asset. But inventory can also hurt your business if mismanaged. As your business grows, you may run into issues such as:
Amazon considers a product to have excess inventory if it has:
These tactics can help your eCommerce business avoid holding excess inventory by increasing sell-through, reducing storage fees, and earning a return on investment.
CargoZone will assist restock tool to help manage inventory efficiently.
The tool is built on a machine learning model. It helps you determine how much inventory to send and when to send it. The restock tool is included for sellers who use FBA and provides custom recommended replenishment quantities and recommended ship dates.
Based on sophisticated models based on your Amazon brand real-time data inputs on demand forecasting, seasonality, fees, seller inputs on lead times, replenishment frequency, and cost of goods sold. Considering what is currently in stock, the restock tool calculates the ideal inventory quantity to store.