Efficient eCommerce inventory management is vital for meeting customer demands and boosting profits in today's digital age because eCommerce has become a dominant force in retail, driving businesses to constantly seek improvement and competitive advantage.
This blog wil give a greater understanding of eCommerce Inventory Management, how Viindoo Software helps the business have better control in managing eCommerce inventory.
How to manage eCommerce inventory in bussiness?
What is eCommerce Inventory Management?
eCommerce inventory management refers to the process of overseeing and controlling the flow of goods from suppliers to warehouses, and finally to customers. It involves tracking inventory levels, monitoring sales, and forecasting demand to ensure that the right products are available at the right time.
Inventory management has been done through spreadsheets and manual data entry. This method was not
only time-consuming but also prone to human error. As ecommerce
businesses grew, it became increasingly challenging to keep track of
inventory manually. This led to the emergence of software solutions
specifically designed for ecommerce inventory management.
Difficulties Faced when Managing eCommerce Inventory
- Overstocking and Stockouts: Balancing inventory levels to prevent stockouts (running out of stock)
without overstocking (having excess inventory) is challenging. Stockouts
can lead to lost sales and dissatisfied customers, while overstocking
ties up capital and warehouse space.
- Dead Stock: Dead stock refers to products that have not been sold for an extended period. Dead stock takes up valuable warehouse space and ties up capital, leading to increased costs for businesses.
- Returns and Exchanges: Handling returns and exchanges adds complexity to inventory management. Processing returned items, restocking inventory, and managing reverse logistics require additional resources and can impact inventory accuracy.
- Seasonality and Trends: Adapting inventory levels to seasonal demand fluctuations and changing consumer trends requires careful planning. Failure to anticipate these changes can result in excess inventory or stockouts.
- Multi-channel Integration: Managing inventory across multiple sales channels (e.g., website, marketplaces, brick-and-mortar stores) can be complex. Ensuring real-time synchronization of inventory levels and avoiding overselling requires robust integration systems.
Journey of eCommerce Inventory Management
Key Principles for Good eCommerce Inventory Management
1. Product Classification: Categorize products based on various factors such as demand, value, and turnover rate. This helps in prioritizing which items require closer monitoring and reordering.
2. Inventory Optimization: Implement strategies to optimize inventory levels to minimize stockouts and overstock situations. This involves forecasting demand, setting reorder points, and safety stock levels.
>>>> Read more: Optimise Inventory management with Viindoo Inventory Software.
3. Demand Forecasting: Utilize historical sales data, market trends, and seasonality to forecast future demand accurately. This helps in planning inventory levels and preventing stockouts or excess inventory.
4. Inventory Audits: Conduct regular audits to reconcile physical inventory counts with recorded levels in your inventory management system. This helps in identifying discrepancies and minimizing errors.
5. Performance Metrics: Monitor key performance indicators (KPIs) such
as inventory turnover rate, sell-through rate, and carrying costs to
assess the effectiveness of your inventory management strategies and
make necessary adjustments.
How Viindoo can help for eCommerce Inventory Management
Viindoo is an all-in-one business management software that offers a comprehensive solution for ecommerce inventory management. Here are some key features of Viindoo that make it an ideal choice for managing eCCommerce inventory:
Reporting and Analytics
Businesses can observe the detailed data of the eCommerce inventory report, the movement, and the fluctuations of goods in the warehouse in real-time when integrating with Viindoo Inventory Management. According to the demand of each position as well as the purpose of users, you can choose the different views of reports: For instance, a chart to see an overview of the goods movement in the warehouse; an analysis form (pivot) for the detailed analyzing purposes such as the movement of each warehouse, the warehouse locations or even each product in the warehouse, etc.
Co-hort Analysis on Viindoo eCommerce
Real-time inventory tracking is crucial for accurate eCommerce inventory management. With reports on available quantity and on hand quantity, businesses will have an overview for monitoring their stock levels in real-time, ensuring that they always have the right products available to fulfill customer orders.
Stock On Hand Report of Viindoo eCommerce
When using our platform of eCommerce website, each sales order is placed, the inventory levels are automatically updated in Viindoo eCommerce software. And in the opposite, the eCommerce website will also display the actual inventory quantity of the product to ensure real-time updates on inventory levels and prevent overstock.
Updating the product quantity on Viindoo eCommerce website based on stock levels
Automatic Invoice
Viindoo allows users to issue invoices automatically for online paid sales orders on the eCommerce website. This saves processing time and avoids arising invoice risks for businesses.
Enable the Automatic Invoice feature on Viindoo eCommerce
Additionally, businesses can also confirgure the manual invoicing what is ordered or delivered for each product.
>>>> Read more: Issue invoice for the online paid sale orders.
Forecast and Demand Planning
Viindoo's advanced forecasting and demand planning capabilities allow businesses to accurately predict future demand and optimize their inventory levels. By analyzing past sales data, businesses can determine which products are selling well and adjust their inventory accordingly. This helps prevent overstocking or understocking, leading to cost savings and improved customer satisfaction.
>>>> Read more: Explore the feature of Forecasted inventory with Viindoo Inventory Management.
Multi-channel Selling Management
Viindoo Omnichannel is a part of the Viindoo Software, easily integrated with Accounting, HRM, Project Management, Manufacturing applications, and more to form a comprehensive ecosystem managing all business operations seamlessly. This allows for selling products on many different plaforms from Stores, Websites, Social Networks, Email, e-commerce platforms to other channels such as Affiliate marketing, KOL, KOC, ...
Management processes and reach more customers with Viindoo Omnichannel
Viindoo Omnichannel also allows for better data sharing and streamlines business operations. For example, when an order is placed, the inventory levels are automatically updated in Viindoo, and the accounting system is notified to generate an invoice. This integration eliminates the need for manual data entry and reduces the chances of errors.
>>>> Read more:Tips for implementing the strategy of Omni channel marketing.
Maximise revenue
To help businesses maximize revenue, Viindoo eCommerce has built-in necessary features such as:
- Cross-selling with customised accessories and products recommendation feature to help increase order revenue and bring profits to businesses.
- Up-selling recommending alternative or higher-quality products (upselling) when a
product is out of stock is a great way to retain customers and boost
sales.
- Setting up promotion and discount programs to raise consumer demand, increase sales revenue.
- ...
Keep Up With the Future Trends in eCommerce Inventory Management
We are also making great efforts to keep up with technological developments, continuously improving and developing products in e-commerce inventory management with expectations for trends such as:
AI - Artificial Intelligence
AI is already being used in various industries and we expect it to be applicable in eCommerce inventory management with analyze data, predict demand, and optimize inventory levels more accurately as well.
IoT - Internet of Things
IoT refers to the connection of devices to the internet, allowing them
to collect and exchange data. In ecommerce inventory management, IoT can
be used to track products in real-time, monitor stock levels, and
automate order processing.
Blockchain
Blockchain technology offers a secure and transparent way to track and
manage inventory. By using blockchain, businesses can ensure that their
inventory data is accurate and tamper-proof, reducing the chances of
errors and fraud.
Discover Viindoo e-Commerce
Start with essential features. Optimizes your revenue with a modern, scalable, easy-to-use online store, expand alongside your growing business.
FAQs
Viindoo Software offers features such as centralized inventory
management, demand
forecasting, and multi-channel integration to streamline inventory
operations.
Viindoo provides detailed reports on eCommerce inventory movement and
fluctuations in real-time, enabling businesses to monitor stock levels
and make informed decisions promptly.
Viindoo is prepared to incorporate future trends such as AI, IoT, and
blockchain technology into its inventory management solutions to enhance
accuracy, efficiency, and security in managing eCommerce inventory.
Choosing the Right Solution for eCommerce Inventory Management
When choosing an ecommerce inventory management software, businesses should consider their specific needs and look for features such as real-time inventory tracking, multi-channel selling, and demand forecasting. Additionally, integration with other systems can further streamline operations and improve efficiency.
By understanding the key components of eCommerce inventory management, following best practices, and utilizing the right software solutions, such as Viindoo - a comprehensive solution for eCommerce inventory management, businesses can effectively manage their inventory and stay ahead in the competitive world of eCommerce.
