Inventory management tips for small businesses

Good inventory management should be a top priority for e-commerce business owners. Having a well-defined inventory management process is essential for optimizing how you control inventory and improving business operations overall.

Inventory management is an essential aspect of operating an e-commerce business—more so than your typical retail business. Its impact is widespread—from sales and customer satisfaction to the efficiency of your internal processes.

Use insights to inform decisions like reordering and pricing

When you see the most sales based on customer demand and seasonality, you get in-depth inventory analysis. This data can then be used to base decisions on facts instead of assumptions and estimates.

Automate as much as possible

Having your team go through inventory with barcode scanners might be effective. However, automation will save you a lot of time and money, and it will improve accuracy.

Use order tracking

With a more organized system for order tracking, you’ll have a clear view of order statuses and a better handle of order fulfillment overall. And, with order tracking, you’ll be able to provide your customers with updates.

Focus on consistency and process

One of the best things you can do to make inventory management run more smoothly is to follow consistent processes across the board. This is especially true if you have multiple team members involved in inventory control.

Streamline internal communication

Keep your whole team in the loop with real-time status updates and periodic action emails. Depending on how your business operates, you may want to send these action emails weekly or daily. This ensures your team is receiving the information they need, when they expect it.