5 tips on how to master e-commerce inventory management

As a small business owner, inventory management probably doesn’t top your list of favourite responsibilities (and if it does, congratulations—you’re already ahead of the game!) The truth of the matter is that e-commerce inventory management often falls through the cracks, particularly if you’re a new Founder. But poor inventory management can lead to complex challenges that even the most seasoned entrepreneurs struggle to overcome. To build a profitable and scalable e-commerce business, Founders will need to master the ins and outs of inventory management.

Why ecommerce inventory management matters

Since 2013, the number of operating warehouses has increased by over fifteen percent in the U.S.—that’s a total growth of over 2,400 new facilities. Businesses are stocking at unprecedented levels, meaning getting a handle on inventory management is more crucial now than ever. By paying close attention to inventory levels, you’ll:

• Know when and how much to re-order
• Optimize sales by stocking new items
• Avoid over-ordering and pile-ups in your warehouse
• Track your sales, from manufacturing to shipping to when the order is in your customer’s hands
• Forecast demand so that you don’t run into any surprises

Given that 43% of small businesses still rely on manual methods to manage inventory, it’s not surprising that most pitfalls related to ecommerce stock management could have been avoided. By managing inventory level with the diligence and care that you’ve approached all other parts of the business, you’ll be well-poised to succeed.