Inventory management is one of the most challenging aspects of eCommerce. For example, stock-outs can result in dissatisfied customers, loss of profits, and back-orders. Excessive supply can also lead to a slow turnover. As you can see, it is also tough to balance the impact on the revenue stamps of manufacturers. Let’s find out more about the role of analytics in inventory optimization, and how you can use it to help you avoid those ugly situations.
Stocking Products that Actually Sell
If you fail to identify stocks that led to poor sales, you won’t be able to fill your shelves with products that actually sell. This can lead to stagnant turnover ratios. With analytics, you can identify insufficient demand for a certain product, non-competitive prices, poor planogram layouts, or the possibility of ineffective marketing. In addition, it helps you to ensure that your inventory data, in terms of refiling ordering systems, is precise. You no longer need to deal with the daunting task of inspections, annoying service delays, and more.
Refine Raw Data
Sellers on Amazon can acquire pre-season statistics via analytics to determine the purchase quantity, product assortment, and size quantities. When it comes to sorting out accumulated data, analytics can act as a medium that deduces the financial costs of the products, and inculcate sales data. This allows the seller to get a clear idea of their product’s profitability, and make more informed decisions on items to be included in their inventory.
Avoid Overstock and Understock Situations
It’s not just about sales losses and backorders, running out of stock also leads to disappointed customers. Proper analytics can help online sellers avoid an overstock or stock-out situation by analyzing the product demands and purchasing behavior of customers. This will in turn enhance the seller’s supply chain.
Today, sellers can look beyond available data on out-of-stock inventory levels, and post-sales to deduce customer demand. You can even link your stores to data generated by real customers, to conduct price comparisons and observe product interactions from reading reviews.
Accumulated data can then be tailored to your inventory management system, and linked to the supply chain. Analytics certainly have the ability to enhance coordination in the decision-making process, and paint an accurate picture of the product demand.
Identify Channels that are Performing Well
Analytics are also great for developing marketing strategies. A solid marketing strategy moves beyond your page views on the website. It has to be more than what just meets the eyes. One of the keys to inventory optimization success lies in integrating different channels as efficiently as possible. With that in mind, you can certainly look at data from other sources like social media sites, email marketing, and blogs. It will definitely help you add a touch of personalization to the overall customer experience.
When you place channels in one place, you will be able to enable inventory growth for both the partner and vendor, identify new opportunities that allow you to cut down on inventory liabilities, and verify the data. Using sales-in and sales-out analytics can help sellers understand inventory trends, and identify anomalies in data with greater clarity. This allows sellers to gain better insight besides identifying potential issues.