inventory management

6 Ways eCommerce Businesses Can Improve Inventory Management


Inventory management is probably not one of your favorite duties as a small business owner. However, inadequate inventory management can result in complex problems that are difficult for even the most experienced business owners to solve. Therefore, owners of an e-commerce company will need to become experts in inventory management if they want to build a successful and scalable enterprise.

Warehouse and order fulfillment providers can provide immediate expertise and long-term cost savings for your operations if they follow an effective strategy.

This post will explain six ways that e-commerce businesses can improve inventory management.

Keep a Record of Your Emergency Supplies

You never know when something unexpected might happen. As a result, having backup supplies is critical. You may need it for a variety of reasons. We need only look at recent cases of panic buying to demonstrate that unpredictable supply and demand do occur. Keeping track of equipment will ensure you are prepared for any unexpected situations.

Use the Right Software to Balance Inventory

Another essential strategy to improve your inventory management is to sell all your stock. However, you also don’t want to carry so little inventory that you turn away customers and lose your target market. Through clearance sales and negative reviews, each of these things can result in a loss of earnings. You can avoid overstocking and understocking with the right software and proper inventory management.

Use the Kitting Method

“Kits” is the act of assembling stock to be sold as a package. For example, consider the “Buy 2 Get 1 Free” promotion. It is beneficial to sell any excess inventory for a profit. Additionally, it increases the average order value and lets clients know they are getting a great offer. You can use social media marketing for promotions.

Consider Historical Purchases to Predict Future Stock Prices

This method will help you set up a feedback loop to learn how the stock performs. You can determine which inventory stock needs to be increased or decreased. You can track stock to determine which items are selling best. It can be performed as often as desired and helps to evaluate annual patterns.

Be Smart with Storage

Physical storage of products is a critical factor to consider when stockpiling stock for sale. Make sure products are easy to find, whether you store them in a warehouse or a spare room. The customer will receive the product sooner if you place it in a location that makes it easy for them to pack and mail it. This method helps you manage inventory and provide excellent customer service.

Adopt FIFO Strategy

Retailers who sell items with expiration dates prefer a first-in, first-out method. FIFO refers to fulfilling client orders using the first items that arrive in the warehouse. Anyone can use this method but concentrate on price trends for your products and raw materials. Due to the discrepancy between the cost of products received and the cost of goods sold, price fluctuations can lead to excessive profit margins.


Your job will be much easier if you have an effective inventory management system. You can increase your profits by tracking your inventory with the right software and these methods. Ultimately, this results in a happy client who will continue to use your services.


I am Marketing Manager at Digitalize Trends. My role is to research & ideate on trending topics & need to write the niche content as per industry norms. To help & provide relevant information to the community on trending technologies.

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