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Inventory Management in Ecommerce

Published on 20 June 16
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E-Commerce has seen a tremendous growth over the years. Constant changes and improvements have helped E-commerce evolve over the course of time. For every e-commerce website, it is important for it to have, a proper design, high traffic ratio, brand recognition and many other things as well. But who takes care of the things that are back-end or behind the scene activity? This is when inventory management comes.

The storage area that is filled with much stuff does affect the customer satisfaction and the competition in the E-commerce business. If inventory is well managed it can really help business to grow but with poor inventories, many businesses have failed and failed to grow as well. If you want to sustain, hiring an expert to manage Inventory could prove to be useful.
Inventory Management in Ecommerce - Image 1
The Need for Inventory Management

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.

Make your inventories JIT (Just in time)
The businesses that can manage just in time inventory management, they have options to only operate with little inventory. For these to happen, it requires apt demand forecasting as well as a reliable supplier management, so that goods will be there when they are needed the most. But this also puts you in a vulnerable spot, to face supply chain disruptions or any unanticipated events.

You might need Just in case Inventory Management. People are usually aware of the fact that, if they are about to get hit by any storm or even a hurricane, they’ll make sure that, they get all the needed supplies before things happen.

Well, businesses do the same as well, when they see a high degree of uncertainty in supply or demand or even both. Just in case inventory help business to function normally like every other day, if they have to see any uncertainties to happen in demand or fall in supply or even some natural disaster.

Reliable Supply Chain It is important for you to understand that your E-commerce business requires a very reliable supply chain management. Your suppliers need to very prompt in delivering shipments to you. For this, you need to have a very decent working relationship with them and high reliability should also be there on their part. An unreliable supplier would do no good to you and cost you in your fulfilments to your customers. Having extra inventory might not be a success but having a reliable supplier would only do good to you and your business.

Sometimes even your supplier might have strike problem or any other uncertain problems, at that time, you need to very carefully monitor your supply chain and keep other reliable suppliers as your backup.

To conclude, inventory management is crucial if you have an E-commerce website. E-commerce Development Experts often provide you with right strategies that would help you understand the importance of inventory management for your E-commerce business.
E-Commerce has seen a tremendous growth over the years. Constant changes and improvements have helped E-commerce evolve over the course of time. For every e-commerce website, it is important for it to have, a proper design, high traffic ratio, brand recognition and many other things as well. But who takes care of the things that are back-end or behind the scene activity? This is when inventory management comes.

The storage area that is filled with much stuff does affect the customer satisfaction and the competition in the E-commerce business. If inventory is well managed it can really help business to grow but with poor inventories, many businesses have failed and failed to grow as well. If you want to sustain, hiring an expert to manage Inventory could prove to be useful.

Inventory Management in Ecommerce - Image 1

The Need for Inventory Management 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.

Make your inventories JIT (Just in time)

The businesses that can manage just in time inventory management, they have options to only operate with little inventory. For these to happen, it requires apt demand forecasting as well as a reliable supplier management, so that goods will be there when they are needed the most. But this also puts you in a vulnerable spot, to face supply chain disruptions or any unanticipated events.

You might need Just in case Inventory Management. People are usually aware of the fact that, if they are about to get hit by any storm or even a hurricane, they’ll make sure that, they get all the needed supplies before things happen.

Well, businesses do the same as well, when they see a high degree of uncertainty in supply or demand or even both. Just in case inventory help business to function normally like every other day, if they have to see any uncertainties to happen in demand or fall in supply or even some natural disaster.

Reliable Supply Chain It is important for you to understand that your E-commerce business requires a very reliable supply chain management. Your suppliers need to very prompt in delivering shipments to you. For this, you need to have a very decent working relationship with them and high reliability should also be there on their part. An unreliable supplier would do no good to you and cost you in your fulfilments to your customers. Having extra inventory might not be a success but having a reliable supplier would only do good to you and your business.

Sometimes even your supplier might have strike problem or any other uncertain problems, at that time, you need to very carefully monitor your supply chain and keep other reliable suppliers as your backup.

To conclude, inventory management is crucial if you have an E-commerce website. E-commerce Development Experts often provide you with right strategies that would help you understand the importance of inventory management for your E-commerce business.

This blog is listed under E-Commerce Community

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