Whether you're a seasoned warehouse manager or a small business owner just starting out, mastering inventory management is paramount for your online store's success. However, it can be daunting to know where to start. To help, we have put together 10 proven tips that will bippity-boppity-boo your inventory woes into wins.
So, let’s get to work!
Embrace the cloud:
Your inventory's new bff
Say goodbye to clunky spreadsheets and enjoy real-time inventory with the cloud. Cloud-based inventory management software saves the day for e-commerce businesses of all sizes.
Another benefit? Cloud-based tools are easy to scale up and access from anywhere, letting you see data in real time and make smart choices.
Interested in learning even more? Cloud-based inventory platforms can help by:
- Tracking stock levels in real time across all your channels, locations, and warehouses.
- Accessing inventory data from anywhere, at any time (eliminating the need to search for inventory lists on your computer).
- Obtaining a comprehensive overview and collaborate effortlessly with your team, all from a single, convenient location.
Mobile inventory management:
Take control on the go
Manage stock levels on the go and enjoy significant efficiency gains. Mobile solutions boost productivity by up to 30% when companies adopt them. Also, make sure your mobile inventory management app includes barcode scanning, as scanners are 99% accurate and help you achieve even greater improvements.
Pro tip: When choosing a cloud inventory management solution, check if there are any additional fees for the companion mobile app. No one likes surprises when it comes to surprise costs.
ABC analysis:
Focus where it matters
Use the ABC analysis to pinpoint your priorities by sorting inventory into three categories:
- A: Expensive items that are the most in-demand
- B: Mid-priced items with moderate sales
- C: Low-value items that are the least important
Once sorted, create action plans like:
- Monitoring “A” items closely and counting them frequently
- Relaxing inventory checks for “C” items
Set par levels:
Stay ahead with a safety net
Establish minimum stock levels (par levels) for each product. When inventory drops below these levels, reorder automatically.
Par levels can help by ...
- Preventing unexpected stockouts
- Maintaining optimal inventory levels
- Streamlining the reordering process
Bonus tip: Use cloud-based inventory software to set up automatic alerts when products reach par levels.
First In, First Out (FIFO):
Keep it fresh!
Adopt the FIFO method to sell older stock before newer inventory. This approach reduces waste and ensures customers receive fresh products. FIFO is particularly important for:
- Perishable goods (learn more about perishable items here)
- Products with expiration dates
- Quickly obsolescent items (like tech gadgets)
Conduct regular cycle counts:
Small efforts. BIG rewards.
Leave behind the chaos of annual inventory counts. Instead, conduct regular cycle counts by:
- Counting small portions of inventory daily or weekly
- Rotating through your inventory systematically
- Identifying and resolving discrepancies quickly
Cycle counts improve accuracy, reduce disruption, and minimize stress for your team. Future you will also be very thankful!
Optimize your warehouse layout:
Efficiency starts here
Improving your warehouse's layout and operations can boost output, cut down on mistakes, and improve the workflow.
Some areas worth focusing on include:
- Placing fast-moving items near packing stations
- Utilizing vertical space with proper shelving
- Implementing clear labeling and barcode systems
These adjustments shorten picking times, reduce errors, and increase overall efficiency.
Leverage kitting and bundling:
Boost sales and simplify inventory
Consider bundling products into kits to streamline fulfillment and cut costs. Kitting consolidates multiple SKUs into one ready-to-ship package. This method is ideal for e-commerce businesses creating subscription boxes, gift sets, and product bundles.
Kitting and bundling also:
- Increases the average order value
- Moves less popular items by pairing them with a more popular product
- Simplifies stock management by grouping items as single units
Implement Just-in-Time (JIT) inventory
Stay lean, mean – and efficient
Align your inventory levels closely with customer demand and order stock only when you need it.
This approach, known as Just-in-Time (JIT) inventory management, requires precise forecasting and reliable suppliers, but it can be worth it though, and businesses can enjoy several advantages, including:
- Dramatically lower storage costs
- Reduced risk of outdated inventory
- Improved cash flow
Pro tip: Start small and expand as you perfect the process.
Automate. Integrate. Dominate.
Unleash the power of tech
Your tech is more powerful when everything works together. So, link up your inventory management software with other systems to get the most out of it.
When you connect different platforms, you create a network of data that works together (instead of against each other). This lets updates happen across all your platforms at once, giving you a clear view of all your channels.
Elevate your e-commerce inventory management
Your e-commerce success story starts now. Let’s make it happen!
Final thoughts
By implementing these tips, you will set your e-commerce business up for success in 2025. Remember: It is not about perfection but, rather, continuous improvement. So, start with one or two strategies and build from there. (Rome wasn't built in a day, after all.)
And remember: you got this! May 2025 be your best year yet!
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