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5 essential strategies for inventory management of an e-commerce store



Inventory control is an essential aspect of every e-commerce company’s financial operations. The corporation’s “active capital,” which means that stock is the same as revenue. In other ways, the manner you handle your inventory must be cost-effective and profitable for your company.

Assume it’s Black Friday, and your e-commerce site is a huge success. Customers visited your e-commerce store from all around the world and made transactions. However, when it comes time to ship the merchandise to the shoppers, you discover that there aren’t enough supplies in inventory to meet increased demand.

Aside from annoying the consumer who is already awaiting the merchandise, there is the whole revering process. You could lose money due to refunds and bank costs. The end outcome is a loss of revenue.

But how can you stay away from it? Let’s learn about inventory management and its strategies:

e-commerce store
5 essential strategies for Inventory management of an e-commerce store

What is Inventory Management?

Inventory, in monetary units, is the collection of tangible goods held for sale or manufacture by a corporation. These are the goods that you offer in the context of e-commerce. 

The operational and social administration of inventory is designed to guide the number of products and their monetary value, as storage accounts for roughly 60% of a company’s operating expenditures.

By keeping track of these variables, you may determine the minimum number of products required to match consumer spending without compromising sales.

1. Invest in a stock controller.

Having someone (or a firm) who is solely responsible for inventory management can improve your things much better. After all, you might have a lot of other tasks as an e-commerce store owner. Establishing a system to perform and maintain your stock, depending on the nature of your organization, is the best method of keeping your clients satisfied and your e-commerce store lucrative.

2. Stock Management Software.

On the web, you may obtain a variety of e-commerce control spreadsheets. On the other hand, Spreadsheets can be complicated for your staff to use because all recorded data is performed manually. Your e-commerce store will become more effective as it becomes more nimble and computerized. As a result, consider purchasing stock management software. You may incorporate it with your e-commerce store and merely observe the reports, leaving the operations to your sales team.

3. Define a strategy for inventory management.

There are numerous approaches to better supply chain management and increased e-commerce performance:

Instead of obtaining stock before implementing your sales strategy, you go the other way, monitoring customers’ requirements and procuring the appropriate amounts of goods.

The FIFO Inventory System is a storage method in which newer goods are permanently assigned after earlier generations, resulting in the oldest items being sold first. This helps to avoid expiring trash and missed deadlines.

Dropshipping is having your stock outsourced so that when a buyer makes a purchase, your provider is notified, and the goods are delivered. An excellent method or approach for inventory management when talking about financial control.

4. Bargain with vendors.

Negotiating more time deliveries with vendors can help you lower the amount of stock you have on hand, making inventory control in e-commerce easier.

We sometimes fail to consider the maintenance expenses of static stock in our eagerness to achieve a cash discount, which is a bad idea. Instead, compute your storage expenses and see if the savings offered by your business associates are worthwhile, then determine which option is ideal for your e-commerce store to buy in bulk and endure inventory costs, or to purchase in smaller amounts and have a higher profit margin of goods.

5. Keep an eye on your merchandise.

Financial costs associated with delivery delays and brand harm due to customer displeasure can be decreased if goods are tracked. RFID tags are a suitable option for this. They let you keep track of all the things you buy, from the moment it has reached the warehouse to the time the consignment is shipped and delivered to the end customer. 

This step is significant for individuals who operate a global e-commerce store.  While monitoring ensures better protection for products sold, it also informs your consumers updated about the ordering process, improving customer trust in your e-commerce store.


Having a good stock management process in place can significantly simplify your work. Using a combination of the correct software and these tactics, you’ll be able to keep track of your stock and earn more profits. In the end, it implies a more satisfied customer who will return.

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Simran Juneja
Simran is a Brand Marketing Specialist at ndhgo She is passionate about storytelling and content creation. Her conversational style and marketing background give a unique perspective on the intersection of content and commerce.
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