21/01/2022
How much Inventory do I have, and what is it worth?
Managing your own Inventory is not a big problem.
Yeah, you read it right!
But managing a HUGE inventory is a different story.
Keeping track of a bunch of product SKU's, transactions, geographical reach, and the number of the marketplaces where you sell your product. Oh, we haven't even talked about how much your inventory is worth.
The importance of Inventory Management need not be stressed enough for eCommerce businesses.
In today’s eCommerce business setup, it is common that eCommerce business owners sell their products in multiple marketplaces.
Now, imagine the headache from managing/tracking your inventory level and the value of your inventory for each marketplace? How about the stock level and cost of each product?
If a seller can’t closely manage their Inventory levels, then they are probably making inaccurate decisions. Without proper inventory management, it will be difficult to know if there is enough stock of a product to meet the customer's demand or if the company is holding a huge amount of inventory and incurring unnecessary storage expenses.
Over the years, internet shopping has been a trend. And eCommerce sellers would always want to know if their product is selling or not. One good measure of this is the Inventory turnover. Strategic inventory management will give accurate data to determine whether the product is saleable or resulting in deadstock/unsold inventory. It will help eCommerce business owners forecast the products and their quantity that need to be purchased to meet the demands from the customers and the products that remain unsold and do not need restocking.
Yes, managing your inventory is possible. However, there are common mistakes that may happen if not done right. These mistakes may result in a huge impact on your cash flow, sales revenue, storage costs, and most importantly, your net income and taxes.
So, here's a short question...
Are you properly and strategically tracking your Inventory?
Stuck with the question?
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