Selling products online is constantly becoming easier and easier. When Jeff Bezos started Amazon, he built his own website, packaged his own products – mostly books – and posted them at his local post office. Since then, the process has become more and more streamlined.
Now, it’s easier than ever to sell online. You can have your inventory stored off-site, managed by a third party, and sold via multiple platforms at once, all without leaving the office. Inventory management is all you’ll need to worry about.
What is Inventory Management?
Simply put, inventory management is the tracking of your stock and sales. With an easy-to-use inventory management system, you can accurately follow and keep track of where your inventory is, what is in stock, what is sold, and more. This sort of software is now available to sellers big and small, no matter what your product. Using it will make tracking your inventory so much easier. No more manual paperwork!
Why Third-Party Storage?
Third-party storage means that, as mentioned, another company or warehouse looks after your stock for you. In some cases, they will also help you fulfill your order by shipping it on your behalf from their facility. The benefits of this are huge. Firstly, you’ll have no outlay on your own premises. Secondly, you don’t need to hire your own staff for warehouse management. And, thirdly, it’s simply easier!
Keeping Track Is Key
When using a third party to look after your inventory, tracking becomes even more important. With an integrated software system, you’ll be able to ensure that every single item is accounted for. You don’t want to have to simply trust your chosen storage provider that they can accurately manage your stock. Instead, you want the system to keep track of it, notify you of stock and refunds, keep track of any damaged stock, and more. Without this, you could easily lose valuable inventory at the hands of third-party mistakes.
Integrate With Software and Sales Platforms
On top of this, good inventory management software will also integrate with other software and platforms. Your accounting software will likely be able to pull data directly from your inventory management software, making budgeting and accounting far easier. Better still, a software that integrates with Amazon, eBay, and other online platforms makes the process far more streamlined. As soon as an item is purchased, the stock is updated, everyone is notified, and shipping begins.
Understand Profit Margins
Finally, when using proper inventory management software, every little cost will be factored in. Cost of storage per item, cost of shipping, administrative fees, card charges, and more will all be factored in. This means that you will be able to quickly understand your profit margins and profit/loss on each item and overall. This sort of thing makes running a business that little bit easier, especially if stock is stored off-site, as extra costs may be incurred.
Using a quality inventory management system can make a huge difference to the way your business runs and how profitable it is. Keeping track of every single piece of stock, every sale, and every cost will help you make smart decisions and turn a profit.
