There are several different options open to retailers when it comes to inventory problems. Maybe your inventory is too unpredictable, or you feel like you aren’t getting the pricing right for all of your items.
Whether the case, employing one or more of these four inventory solutions can help any retailer better manage their stock and improve sales.
1) Sell Online
If an item is too expensive to ship or is rarely purchased with one another, it may be worth considering online sales. By offering items that are not commonly paired together on the same page, retailers can maximize their revenue by fulfilling many orders simultaneously.
2) Establish Fulfillment Centers
If an item is only being purchased in bulk, having a fulfillment center can help manage inventory. When an order is made, the retailer sends off just one thing instead of multiple items inside the same box. It cuts down on shipping costs for everyone involved and allows retailers to predict their margins better.
3) Subscription Boxes
Subscription boxes are becoming more popular among retailers who sell specific types of products. For instance, offering a makeup box only once every three months allows retailers to sell their inventory at a total price for the rest of the year without taking up extra warehouse space.
4) Make Use Of Excess Inventory
Finally, consider using those items for promotions or discounts if items are selling out too quickly or not selling at all. By making the most of your inventory, you can increase sales and reduce excess stock at the same time.
Inventory is a necessary part of retailing, but it isn’t something that retailers have to struggle with alone. By employing one or more of these solutions, it’s easy to gain control over your inventory and improve sales numbers.
How can you reduce inventory loss?
Inventory loss is a broad term for missing or damaged items before being sold. There are several reasons why inventory might not make it to the sales floor, but no matter the reason, all lost inventory counts towards your bottom line.
Ways to reduce inventory loss include:
1. Outsource Warehousing
One of the most efficient ways to reduce inventory loss is outsourcing your warehousing. By utilizing a third-party warehouse, you can offload the costs of storing and moving items onto someone else’s balance sheet.
2. Use High-Quality Suppliers
Another way to reduce inventory loss is to use high-quality suppliers. When you work with a lower quality supplier, there’s a greater chance of damaged or mishandled items making it onto the sales floor. And while you might not lose money on those individual items, the lost sales due to an empty stock room more than make up for any savings you may have realized by purchasing lower-cost items.
3. Place Your Products Strategically
Finally, one of the easiest ways to reduce inventory loss is to place your products strategically around your shop. Doing so can reduce the need for customers to ask employees where items are located and prevent them from picking up an item and then just putting it back on the shelf.
When it comes to inventory problems, retailers are never powerless by shifting to online sales, outsourcing warehousing, using high-quality suppliers, or strategically placing products around your store.