Running a fledgling e-commerce company is a challenge. You have to make sure that all the pieces move together in tandem, otherwise, your customer service starts to fail.
Sometimes, though, you wind up with stock issues. Either you have too little to meet demand. Or you have so much you don’t know where to put it all.
In this post, we take a look at how fledgling e-commerce companies manage their stock so that you can emulate them.
They Use Demand Planning Software
A lot of new online retailers are still using old-fashioned spreadsheets to organize their stock levels. And while these were effective in the past, they’re simply unable to keep pace with the complexity of the modern marketplace. They’re a reactive tool, not a proactive one.
The entire industry, therefore, is moving over to demand planning software. This actively monitors data feeds, telling you what stock you need more accurately in the future. It helps to eliminate problems, such as overstocking or failing to respond to transient demand.
They Use Storage Facilities
Sites like https://allinselfstorage.com.au/ are seeing a lot of business from self-storage companies.
Why? Because they provide an important overspill function.
Imagine the following scenario. You acquire data that suggests that demand is going to pick up for a particular product. However, you later find out that conditions in the marketplace have changed, and that you no longer need it.
Usually, this sequence of events would be a disaster. You’d have nowhere to put your stock. But when you have additional facilities you can call upon, you can be flexible. Accidentally ordering a little too much of a particular product isn’t such a big deal when you have room to accommodate it.
They Rely On Fulfilment Centres
You can theoretically manage your e-commerce business from your own warehouse facility. But a lot of brands no longer bother with all that hassle. Instead, they market their products online and then get a third-party fulfilment centre to do all the stock management for them. This way, they don’t even have to think about it.
The way it works is pretty simple. You set up your e-commerce business as normal, building your website and customer email list. But instead of setting up a facility to process orders, you simply go to a company that does that already.
When an order comes through on your website, it goes directly to the fulfillment center. They then pack up your customers’ goods and send them off in the post for you. You don’t have to worry about anything at all. Sourcing, processing, and distributing are all done without you having to lift a finger.
They Sell A Handful Of Winners
If you look at some of today’s top e-commerce companies, many of them sell a handful of winning product lines and forget the rest. They’re not trying to be Amazon. They’re just trying to do one thing well according to https://neilpatel.com/blog/choosing-ecommerce-niche/.
When you only have a handful of products, finding, organising, and delivering them becomes far easier.