Published By Blog Breed
Inventory is hands down the biggest asset of any business. Statistically speaking, inventory makes up for a whopping 80 percent of the total investment for a seller. However, a vast majority of companies get so caught up in business operations that they barely pay attention to inventory planning.
Consequently, it brings them to the verge of breaking point. This is particularly true for e-commerce businesses. Studies suggest that as many as 22 percent of e-commerce organizations come to a halt within their first year.
And, among other things, poor inventory planning has been cited as a major reason behind the setback. Wondering why inventory planning can make or break an e-commerce brand? Well, keep reading to get a comprehensive answer to this question:
1. Ensures Optimal Stock Levels
Being an e-commerce retailer, you need to be always on your toes. There is no way you can afford to adopt a laid-back approach because customers’ expectations are constantly increasing.
Regardless of how loyal a customer base may be, if you fail to provide them with what they are looking for, it will be just a matter of time before they switch to another brand. We have seen this happening a lot during the recent pandemic. That is why maintaining optimal stock levels holds the key.
Having adequate stock means you will be able to keep up with the market demand. In simple words, customers will never return empty-handed from your online store. Besides, sustaining optimal stock levels also saves you from issues that spring from overstocking. For example, you can save a ton of money on warehouse rent and maintenance.
2. Provides You Critical Insights
Smart inventory management will keep you well-informed about a variety of aspects of your business. That way, you can make decisions that are more likely to be materialized.
To begin with, your marketing team will come to terms with the customers’ preferences by following the trajectory of popular items. Such insight is very handy to map out a robust marketing strategy.
Moreover, inventory planning will make it easier for you to figure out when sales might spike up. Once you get this information, you can subsequently recruit additional staff to avoid overburdening the workforce.
These are just a handful of examples. Inventory planning will give you access you a myriad of facts and figures. By incorporating them into your business plans, you can take your e-commerce business to the next level.
3. Reduces Exploitation Of Goods From The Hands Of Employees
Employee theft is becoming quite rampant. In fact, 95 percent of businesses have suffered from this menace. Guess what? inventory planning can drastically reduce these incidents. With the help of the latest inventory tracking software, it is even possible to take employee theft completely out of the equation.
4. Boosts Customer Experience
Modern-day customers eagerly wait for their favorite brands to launch new products. Now imagine how frustrating it would be for them to get a broken product after waiting for months.
Needless to say, buyers immediately break ties with e-commerce brands after witnessing unprofessionalism on such a massive scale. Good inventory planning helps you to keep such blunders at a safe distance and guarantees the best customer experience. If you constantly maintain this standard, customer loyalty will increase tenfold for your brand.
The Bottom Line
There was a time when customers had limited brands at their disposal when they set out for shopping. But things have changed now. With the record increase in the number of e-commerce companies, customers have an abundance of options nowadays. If you run an e-commerce brand and want to cut through the noise, inventory planning is your best bet.