Do you sell any items on Shopify? You may want to learn about inventory management when you sell any items on Shopify. Good inventory management will help you improve your cash flow. You can learn how to track inventory in Shopify easily from this page.
Why You Should Manage Shopify Inventory?
There are a lot of benefits that you will get by managing the Shopify inventory. It will give you a complete insight into your customer preferences, customer behaviors, business opportunities, some new product ideas, consumer ideas, buying trends, financial performance, and also the overall profitability in your online store.
Having a clear Shopify inventory management system will help you prevent loss from any misplaced items, spoilage, and also returns. You can reduce the overall inventory cost, optimize order fulfillment, and also create better customer service by having a good Shopify inventory management system.
Does Shopify have inventory control? Yes, but it offers limited features on the inventory for the Shopify system. You still need to find some other alternatives for managing the inventory in your Shopify store easily.
10 Best Practical Shopify Inventory Management Techniques
1. Set par levels in your store
Par levels are the minimum quantities of product that you may want to have in your storage at all times. When the inventory dips below these levels, you may want to order more from your suppliers. Par levels may be varied based on the products and the popularity of the products.
2. First In, First Out (FIFO)
FIFO is an important principle that you need to have with your inventory management. The oldest items will get sold first. This step is very important, especially for any perishable products, so that you can avoid loss from spoilage or other damages to the products.
3. Manage relationships with suppliers
This is another important thing that you have to do, so you can have a good inventory management system. You need to build a strong relationship with your suppliers, so you can order any items that you want to them at any time you need to restock your products.
4. Prepare a contingency plan
You may face some issues and challenges when managing the stock in your store, for example, your sales increases unexpectedly and your store oversells your stock, you run into the cash flow shortfall, your warehouse cannot accommodate the seasonal spike in sales, etc. You should get ready with any of these issues when you want to manage your inventory in your Shopify store.
5. Regular auditing
A physical inventory or stock take is an important practice for counting all of your stocks in your storage. Although it is a tedious task to do, you can get benefits from this procedure. You can also use the cycle counting procedure for auditing the inventory.
6. Classify your products based on the popularity and profitability
Some products may drive more profits and sales than the other products. You will ensure that you have profitable products on hand, so you will never miss out the future sales. When you have some slow-moving items, you can get them off your shelves by offering discounts to your customers.
7. Accurate forecasting
You should be able to predict the demand in the future. When you are projecting the future sales, you can also use some details, such as market trends, last year's sales, growth rate, upcoming promotions, guaranteed sales from the subscriptions and contracts, etc.
8. Just in Time (JIT)
This is another inventory management technique that you can use. With this procedure, you are going to keep the inventory level as low as possible, so you can meet the demand and then replenish the stock before any products are out of stock. It will require you to have accurate forecasting and planning.
9. Safety stock
It will work similarly to the emergency fund. It is the inventory that you are going to set aside and you will use it in case of emergency. This safety stock will act as a threshold, especially when the products are running out of stock due to any reason.
10. Determine the reorder period
The reorder period or reorder point will tell you when is the right time for replenishing your stock. You also need to consider the lead time with the supply chain or suppliers, so you can determine the right point for placing your order.
Best Shopify Inventory Management Apps You Can Use
1. Skubana
This Shopify inventory management app allows you to organize all data from your Shopify accounts and synchronize everything easily. Its integrated system will make your inventory, analytics, and sales accessible from a single dashboard. Its inventory and order management systems are ready for helping you manage all inventory across all of your channels, so you can enjoy fast order fulfillment, few sell-outs, and also fewer lost sales in your store.
2. Inventory Planner
This Shopify inventory tracking software has an automatic replenishment recommendation, so you can speed up the reordering process by using this software. It will identify trends in your store by delivering powerful reports about your online store. You can sync this app with Shopify, so you can keep track of any orders, expected arrival dates, and the total inventory items you have in stock.
3. SkuVault
If you want to manage your inventory in your store easily, you can consider using this inventory management software. It will connect all of your channels, organize your warehouse, and also manage your inventory with its simple workflows.
A Good Alternative: Start Dropshipping
Dropshipping will be a good alternative for you who want to sell on your online store easily without having to worry about inventory management. This business opportunity allows you to sell any items without having any stock in your storage. When customers order any items from your store, you can ask your dropshipping suppliers for sending the items to the customers directly.
One of the most popular free dropshipping platforms on the Internet is SaleYee.com. This platform allows you to sell any items for your store easily. There are more than 30,000 unique SKUs that are available in this store. SaleYee will send your ordered items to your customers with its fast and free delivery service. All products from SaleYee are guaranteed to meet your customers' expectations .
Conclusion
If you want to become a successful Shopify seller, you need to learn how you can manage the inventory in your store. You can also consider dropshipping as a good alternative for opening up an online store. You only need to find the best suppliers who are ready to support you with any items for your customers.
