The ultimate inventory management checklist for eCommerce businesses – Xero
We recently came across this fantastic free resource provided by Xero.
We’ve seen a few eCommerce businesses struggle to manage their inventory properly and wanted to share this 15-step eCommerce inventory management checklist with you also.
Here’s a sneak preview…
1. Use data to plan ahead
Use data to plan ahead and calculate the right quantity and range of stock to have on hand throughout the year.
Start with these two steps.
- Look at your historical annual customer order numbers. Break down the figures into daily, monthly and quarterly volumes to help you identify the peaks and troughs of customer demand. Will you, for example, need extra stock in early December to meet Christmas demand?
- Identify how much additional stock you are likely to need if customer demand increases for any reason (this is your buffer). For an accurate forecast, look at what’s happened in previous years.
Check the latest consumer trends. Review industry data to work out the right volume of safety stock for your business.
Also, think about how much equipment you’ll need to ship stock throughout the year. At certain periods, you may need additional boxes or bubble wrap; at other times you may need less. Plan for this too.
2. Stay on top of stock supply
Check you have a good process in place for maintaining optimal stock levels. Ask yourself:
- How quickly can I replace declining stock levels?
- Do I have sufficient safety stock for an unpredictable spike in customer demand?
3. Use online, real-time inventory software
Some extra advice from us here… we highly recommend A2X, automated accounting for eCommerce businesses. If you have a question, we can help