Shopify Inventory – The benefits and importance

by Julia Jackle - Jul 23, 2020

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Shopify Inventory – The benefits and importance.

Let’s face it! One time or another, customers have had to abandon their carts on your online store simply because a single product that they wanted to buy was out of stock. And it doesn’t end there. You might have also found yourself having to sell products at a throw-away price to clear out outdated inventory. If this is the case, there is a high likelihood that you are overlooking the importance of managing your inventory for your e-commerce store. The truth is, effectively managing your inventory cannot be stressed enough. This not only helps you fulfill orders in time but also accurately. And as you grow from a small warehouse to a bigger facility, the need for an efficiently managed inventory becomes indispensable.

Benefits of an Effective System

1. Accurate Order Fulfillment

Imagine this, a shopper completes an order, you receive and confirm it only to realize that the product is out of stock. Even worse, you ship the wrong product. Such occurrences are not uncommon if an inventory is poorly managed. Therefore,invest your time and resources to manage your order to avoid many returns, inaccurately returned orders, and losing customers.

2. Better Inventory Planning and Ordering

It is virtually impossible to figure out which products are more popular if you can’t tell what is on sale. In the absence of a well-organized inventory, you will end up overstocking items such of which are not even popular with shoppers. In the midst of this, your popular products could end up being out of stock which could only mean one thing: Massive losses for your business. However, a well and efficiently organized inventory will help you mitigate such issues giving you the privilege to update and refresh your stock only when needed. This will not only save you space but also money.

3. Increased Consumer Satisfaction

Consumers who shop online eagerly wait for their products to arrive and it can be devastating if they receive what they did not expect. If this happens, chances are that they will not be returning to buy more from you. However, by managing your inventory, orders are shipped in time, and accurately. Ultimately, this will put your brand in good standing with shoppers and you can be sure that they will keep coming to buy more products from you.

4. Improved Accuracy of Inventory Orders

The accuracy of orders and tracking status is highly dependent on a well maintained and managed inventory. This will enable your fulfillment partners to send accurately and up to date information to customers who would like to track the fulfillment status of their products.

5. Organized Warehouse

Implementing an effective management strategy will also help organize your store or warehouse. This will make it more efficient more so when it comes to fulfillment or orders now and in the future. In the end, you will save money and leave your customers craving for more of your services.

6. Increased Efficiency and Productivity

With a proper and effective management system in place, you will save lots of cash and human labor which can be invested in other areas to improve and grow your business. Luckily, technology can be used to track and speed up fulfillment operations which guarantee that inventory records are up to date and accurate.

7. Save Time and Money

As a result of improved efficiency, ordering accuracy, and product flow, you will be in a better position to save time, labor and money. This will increase your profit margin and help you invest in other areas that can grow and expand the reach of your business.

About the Author:
Julia Jackle
Julia is the co-founder and CEO of Creative971 and has written blogs in the past for the Entrepreneur Magazine UAE. Her extensive knowledge in the E-Commerce industry in the UAE and GCC is widely appreciated.


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