20% of small businesses fail within the first year. But it’s possible to avoid that same fate with your Shopify business.
There are many reasons that e-commerce businesses fail, but a big contributing factor is poor inventory management. If you’re running a Shopify business, you need to be sure that you have a clear plan for success and that you manage your inventory well.
Fortunately, we’re here to help. In this guide, we’ll list the top Shopify inventory management tips for newbies to eCommerce.
Use Inventory Management Software
One of the best things that you can do to improve inventory management in your Shopify store is to use an inventory management system.
You need to get rid of manual processes as much as possible and automate as much as you can in your business. An inventory management system can help with this and can allow you to track inventory in a much more streamlined way.
Inventory management software can integrate with Shopify and help you monitor everything that’s happening with your inventory.
Schedule Inventory Audits
If you want to manage Shopify inventory effectively, you need to perform audits on your inventory on a regular basis. Auditing your inventory and making sure you know exactly how many of your products you have can be very helpful for keeping your store operating smoothly.
It’s a good idea to set a schedule for checking your inventory and performing an audit. While weekly, monthly, and yearly inventory audits are all options, you need to be sure that you have a plan.
Forecast Future Needs
You should also make sure that you prepare for seasonal changes and shifts in demand as time goes by. Be sure that you do what you can to stay on top of inventory needs and plan ahead.
You should use all of the reporting features that you have access to on Shopify and in your inventory management software to predict and forecast future demand for your products. This will help you avoid instances of being out of stock and letting customers down.
Keep Your Storage Organized
A big part of managing eCommerce inventory well is paying attention to your warehouse and storage. However big or small your warehouse is, you need to make sure that you organize it well. You should ensure that you can easily find the products that you’re looking for.
If you’re disorganized, it can cause problems with fulfillment and make it harder to understand what your inventory is at any given time.
Keep Cash Flow in Mind
When managing inventory, make sure to consider the relationship between inventory and cash flow. You need to ensure that you have access to cash if you need it.
Remember that you shouldn’t have too many products on hand at any given time but you should also avoid being out of stock. Using reporting tools and doing some careful planning can help you ensure that you have the right amount of inventory. Keeping a balanced level of inventory can help improve cash flow.
To further improve your finances and increase cash flow, you may also want to use Shopify accounting services.
Improving Shopify Inventory Management With These Tips
If you want to improve Shopify inventory management, you should consider all of the most important factors. Be sure to perform regular inventory audits, use inventory management software, and forecast your future needs if you want to improve inventory management in your Shopify business.
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