Inventory Management in Ecommerce
Your business needs customers and to fulfill that needs you need to have a prompt inventory management. It is more than needed for quick customer order fulfillment. If you run out of stock, you cannot expect your customer to wait for their order to come; they always have the option to buy from somewhere else. If these things are happening to you, expect poor online reviews that could hit your business really hard.
Don’t forget excessive inventory can also tie up your cost, which could affect your other operations. This would make your business less competitive. Inventories needs to be taken care of and if you have excessive inventory you are likely to lose cash through inventory damages or by degradation and also see a dip on your demand front.
What changes can be done? Let us learn about some key concepts regarding Inventory Management.
Drop Shippers
Basically drop shippers are nothing but suppliers who do your order fulfillment for you, which in return; you can avoid buying and managing your own inventory. But everything comes with a cost and the cost here you might have to pay is of having no control over your drop shippers inventory. This would affect you the most if you are out of stock for the items in demand during holiday season. Late or no deliveries would directly affect your reputation in the market.
You can never be sure shot with about success if you are shipping through drop shippers.