One of the biggest challenges that every e-commerce business owner has to face is managing their inventory. To get rid of this hassle, many e-commerce retailers in the UAE have switched to one of the top-notch courier services in Dubai.
Undoubtedly, managing the inventory of your store is a burdensome task. However, now there are many inventory management software that can help you in this regard. Apart from the use of these handy tools, there are various other ways that can be followed to improve inventory management.
In this post, we have discussed some of the most effectives tips that can help you solve your inventory issues. But before that, let’s take a look at what exactly inventory management is.
What is Inventory Management?
You must be aware that inventory management involves managing ordering, stocking and using the materials or products for the running of a business. When we talk about inventories, there are various types based on the type of your business. Some of them are raw material inventory, MRO goods inventory, cycle inventory etc. The key to inventory management is to successfully prioritize the items you need to order or manufacture frequently to satisfy customer needs.
Inventory management is imperative for the success of every business, if you can successfully manage your inventory you can easily make your business profitable. However, good inventory management isn’t something that most people will get a hang of. Most of the businesses overstock items just to be in a safe-zone, which isn’t right as you’re bleeding capital.
Handy Tips For Managing Your Inventory
Effectively managing your inventory lies within the two extremes of not having enough stock and overstocking. Simply follow these handy tips and you’ll be able to maintain your inventory successfully.
The first and most crucial step for successfully managing your inventory is to categorize your items. Make different priority groups and sort items in them like the most frequently ordered ones, least ordered ones, normally ordered etc. By doing so, you’ll be able to manage your orders more efficiently and will be able to meet the demands of your customers.
Stick to 80/20 Inventory Rule
Sticking with the 80/20 rule will make your inventory management easy and convenient. This rule states that 80% of your profits come from 20% of your stock. Therefore, you must make these 20% items a priority and keep them in stock.
Track Your Sales
Tracking your sales is essential for your business’s growth. It isn’t just about adding up your total revenue at the end of the day. It involves keeping a track of the items that are being sold on a daily basis and by doing so, you’ll be able to track out fast-selling items of your store and maintain their stocks.
Order Restock Items Yourself
If you don’t want anyone to scam you, then learn to do your work yourself or at least supervise it. These days many vendors give the option of restocking your inventory. This may seem like a time-saving choice but it isn’t that much budget-friendly as the vendor’s priority isn’t the same as yours. They only focus on selling their items, whereas you focus on restocking the items that are high in demand. Therefore, to avoid losing money, look into every restock item list that your employees are going to order.
Invest in a Good Inventory Management Software
Another wise decision is to invest in good and reliable inventory management software. In order to make your business thrive, it’s always good to spend money where you need it and getting inventory management software is one of these.
Just like ecommerce delivery in UAE, inventory management also holds crucial importance for every business for its success. So, follow these tips and make your ecommerce business thrive in this competitive world.