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Managing Your InventoryJune 6th, 2008 Managing inventory means more than just keeping your virtual shelves stocked. In the ever-changing universe of online commerce, inventory management has become synonymous with a cutting-edge awareness of market trends and an ability to foresee product demand. Reading demand, predicting what's next in line to be 'hot', and then generating the right promotional forum for a product is central to inventory management. As an online merchant, your objective is to spot industry developments and identify potential trends - and then to use those insights to your best advantage. Still, effectively predicting what's hot in the world of retailing does not follow a simple formula. Acquiring a feel for reading product demand - then choosing what and how much to stock, what to showcase or rotate, and when to promote - is a tricky, intricate enterprise. One of the best solutions here is simply to be extremely well informed. If knowledge is indeed power, then it serves you well to be on top of industry trends and alert to breaking news. |
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You can do this by communicating with manufacturers, attending trade shows, reading trade magazines, and by using newsgroups, online journals, and mailing lists. There are numerous 'intelligence' sites on the web, as well as published e-commerce reports. Secondly, investigate your competitors and subscribe to their information and PR portals. Research their inventory as well as their supply and distribution methods and critically adapt relevant information and strategy to your enterprise.
Inventory management also means making the most of those business opportunities unique to the Internet. Here, utilize online sales models to streamline inventory and distribution methods. Unlike brick and mortar enterprises, e-commerce generally provides merchants with the luxury of maintaining a massive inventory without actually having to warehouse the products themselves. When advantageous, strive to cut out intermediaries and reduce warehouse, distribution, and shipping costs.
On the other hand, the danger of not having a physical inventory can result in complexities during demand surges. Many online stores only stock their most popular items and order the others on an as-needed basis. Whichever strategy applies to you, it is critical that you remain the market expert on the products and services you supply.