When you first open your ecommerce business’s virtual doors, it’s difficult to really anticipate the complexity of storing and managing your inventory. At first, things are simple enough because your customer base is still relatively small, but as time goes by and more people become interested in your wares, managing your inventory on your own can be tricky. Below, you can learn more about these unique challenges and an alternative that can change the way you run your business forever.
Common Problems with Self-Managed Inventory
Managing your own inventory might seem like a great way to save time and money at first, but over time, you might start to notice some common issues.
- Spoilage and Expiration: Though spoilage is most common in the food and beverage industry, it can also occur in others. Things like cosmetics, beauty supplies, and even nutritional supplements don’t last forever, and if they aren’t being stored in ideal conditions (at the right temperature, for example), they may spoil or expire even more quickly than they should.
- Overstock, Understock, and Dead Stock: Stocking is another common issue among those who choose to self-manage their inventory. Overstock means you have too much of a product, understock means you have too little, and dead stock is exactly what its name implies – stock that you simply cannot move because it is no longer in season or style.
- Storage and Management Costs: The most commonly cited issue with self-managed inventory is cost. As your business grows, your space will need to expand. What’s more, you will likely need to hire more and more employees to help manage your inventory if you don’t want to be overrun.
What is the Alternative?
If you are considering starting an ecommerce based business, or if you are currently running a business but inventory management has become too time-consuming, difficult, or expensive, there are alternatives available to you – and an order fulfillment partner is by far the best. These companies exist to help give you back your business by handling the logistics associated with your inventory, orders, reporting, and more. My Fulfillment Company can not only store your inventory for you, but also handle vendors and accounts while providing you with important reports to help you keep your business on track.
If you have considered hiring an outside company to help you manage your inventory but you aren’t sure where to start, consider getting a free estimate based on just the services you need to help ease the burden of managing your inventory and orders today. You might be surprised to discover that you can save money by allowing an expert partner to help you manage your orders and inventory in this way.
Managing an ecommerce-based business can be hard work, especially as your sales start to pick up and your company starts to grow. If you feel overwhelmed by your inventory, or if you are experiencing spoilage or expiration, stocking issues, or high storage and inventory management costs, hiring a partner to help you navigate the logistics may be the best possible course of action for you.