In the cross-border e-commerce field, inventory management is an extremely important link. From obtaining inventory to finally selling it to buyers, the entire process and activities are directly related to the company’s profits. Fine-tuning inventory management can have a huge impact on profits, both positively and negatively. Meticulous inventory management can increase sales, while missed opportunities can lead to lost revenue.
1. What is inventory management?
Inventory refers to the inventory of goods you have and plan to sell through your business. Inventory management covers the processes related to tracking and storing goods so that buyers’ needs can be met quickly and efficiently. It reflects the way goods are purchased, stored and processed before sale.
Inventory is an investment, and the consequences of poor inventory management may not show up for weeks or months. However, once the consequences appear, it may cause product deterioration, slow inventory turnover, increased warehousing costs, or even worse, inventory depletion, resulting in the inability to meet buyer orders. At the same time, warehousing fees and holding costs will also reduce your profitability.
2. Inventory Management System
The inventory management system is responsible for tracking the entire process of goods from procurement to delivery. It can help you make important business decisions, such as determining the number of goods, optimal inventory levels, when to replenish, and which goods need to be cleared or removed from the shelves. The right inventory system can give you a clear understanding of the current inventory status and help you run your business efficiently.
Choosing an appropriate inventory system requires considering factors such as the size of the enterprise, the nature of the goods sold, the service industry, and the sales channels. The inventory system can be a manual inventory combined with a book, a spreadsheet, or even an automated digital solution.
3. Multi-channel inventory management
For sellers operating on multiple sales channels and sales websites, Amazon provides a free software called Veeqo that can synchronize and track inventory across channels, locations, and Amazon logistics. When a channel completes a sale, Veeqo ensures that the inventory of all your channels is adjusted accordingly to avoid overselling.
In the highly competitive environment of cross-border e-commerce, good inventory management is essential to the success of a business. By choosing an appropriate inventory management system, taking advantage of the innovative tools and services provided by Amazon, and rationally planning a multi-channel inventory management strategy, companies can better adapt to market changes, improve operational efficiency, and achieve long-term business prosperity. On the road of e-commerce, meticulous inventory management will become one of the keys to complete success.