Scaling Your eCommerce Inventory Management: Lessons from Successful Brands

Jun 6, 2023 Sunil Kumar 3 min read

Pick your favourite e-commerce brand. Whether it is a local store or a famous retailer, ask yourself these questions:

• Do they store goods both online and in-store?

• Do they always have the products in stock that you are searching for?

If you answered Yes to the above, these brands likely excel at inventory management. Inventory management is a key driver of operational success ��� choose the right software tailored to your e-commerce needs. At HappySellers you can find inventory solutions customised for your business.

What is E-commerce Inventory Management?

Inventory management tracks stock levels and the movement of goods ��� from raw materials to fulfilling customer orders. It helps minimise costs, improve cash flow, and increase profitability while ensuring products are available when customers need them.

Some quick ways to scale eCommerce inventory management

• Review inventory strategy regularly. Reassess reorder points, SKU performance, and supplier lead times on a recurring schedule.

• Buy inventory software. Implement systems that integrate with sales channels, automate replenishment, and provide real-time visibility.

• Prioritize high-value items. Focus forecasting and fulfillment accuracy on best-selling and high-margin SKUs.

• Kit slow-moving items. Bundle or create promotions to increase turnover for slow-moving stock.

• Use data-driven inventory estimates. Leverage historical sales, seasonality, and trends to predict demand.

• Redesign warehouses, factories, and stores. Optimize layouts for faster picking, packing, and fewer errors.

• Maintain stock with good inventory controls. Set par levels and automated alerts to avoid stockouts and overstocking.

Examples of successful brands scaling eCommerce inventory management

• GoDaddy: Recommends investing in inventory management software to build a sustainable eCommerce operation.

• Invensis: Advises focusing on the most valuable products to streamline inventory.

• TheEcommManager: Compiles top inventory management solutions for eCommerce businesses.

• Kliken: Suggests reevaluating inventory strategy when scaling an online store.

• BigCommerce: Defines inventory systems that streamline warehousing and improve financial decisions.

• Business.org: Recommends QuickBooks Commerce for multi-channel integration and inventory control.

Important E-commerce Inventory Management Tips

1. Forecasting demand by diving into historical data

Use predictive analytics to gain insight into sales cycles, seasonality, and lead times. Accurate forecasting reduces excess stock and prevents stockouts.

2. Understanding minimum available stock levels (par levels)

Set par levels to protect operations and maintain a minimum sustainable stock, especially for non-perishables. Par levels act as a safeguard against supply disruptions.

3. Auditing the supply chain

Regularly evaluate manufacturers and vendors. Even if you have only a few suppliers, schedule periodic audits (for example, every six months) to assess performance and risk.

4. Using a reliable scanning system

Implement barcode or QR scanning across receiving, storage, and shipping to reduce manual errors and ensure accurate SKU tracking throughout the process.

Conclusion

Effective e-commerce inventory management minimises waste, cuts costs, saves time, and improves customer satisfaction by ensuring products are available when needed. For more insights on scaling your eCommerce operations, visit HappySellers.