Magento is an open-source eCommerce platform that allows you to handle all of your site’s content in a fully configurable manner. When we talk about a Magento business, we’re talking about an online business based on the Magento eCommerce platform. According to iwdagency.com, Magento was the world’s third most popular eCommerce platform in 2020, and Magento businesses were responsible for the sale of $155 billion in merchandise in 2019. It is due to the fact that your business can get huge benefits from the Magento eCommerce platform, especially when it comes to inventory management. Magento provides various tools that can help you keep track of your stock. This article will show you 5 tips to manage inventories better for Magento businesses.
Implement Magento inventory management software
Implementing Magento inventory management software is always highly recommended if you can afford it. Since this stock control software is designed for Magento eCommerce, it has all the features that a Magento business needs to manage stock and is easy to integrate into your system. It helps keep track of your stock flow across all sales channels and locations. Ensure the right stock is in the right place anytime, at the right cost.
There are some outstanding Magento inventory management software in the market including Magestore, Veeqo, SKUlabs,…Each software has its own outstanding features and advantages.
Regularly conduct inventory cycle counts
Physical counts of inventory are necessary since computerized inventory can not trace all stock movements, including stuff that has been lost or destroyed. Cycle count is a method of counting inventory physically for an eCommerce business. It divides inventory counting responsibilities among numerous people and days. Start by prioritizing the highest-value items (those in the A category if you’re doing an ABC analysis) and having numerous employees (or just you if you’re a solopreneur) count those products for a portion of their shift. Then you move on to products in the B and C categories, which you count not regularly because they contribute less to your bottom line. The frequency of your cycle counts is determined by how cautious you want to be in resolving inventory issues.
Set minimum stock level
It is essential to keep an adequate stock level in an eCommerce business to meet customers’ needs. You will easily lose a customer if you don’t have enough stock for the item they need at ordering time. However, It is quite difficult to achieve a perfect stock level, but a minimum stock level is possible. Setting a minimum stock level for each item to ensure that you can order more before you run out. Calculate your minimal stock based on sales data and the time it takes to acquire additional stock. For example, if you sell one pcs of an item per week and it takes seven weeks for the supplier to produce and deliver a new quantity, you should order when you have seven (or eight) on hand to ensure that the new stock arrives before you sell out. Magento platform also provides par-level notification. So it will automatically notify the managers when an SKU goes below the chosen par level. Your job is to set up this level based on all needed criteria and take action when notified.
Create a top priority list for your inventory.
When using Magento inventory management software, you can see which things sell rapidly and which do not. You may then divide your inventory into priority groups to determine which items you need to order more of and on a more regular basis, as well as which items are vital to your business but maybe more expensive and take longer to move. According to experts, your inventory should be divided into three categories: A, B, and C. The A category contains higher-ticket items that you will use less frequently. The C category includes low-cost items with a high turnover rate. The B category includes items that are reasonably priced and move out the door slower than C but faster than A.
Forecast future demands based on historical sales
A successful organization is one that makes the future a little less unpredictable. Another smart tip to efficiently manage your inventories is forecasting future demands, including seasonal demand. Magento inventory management can provide you an immediate and visualized access to past purchasing data. Therefore, You can easily examine previous sales to understand when demand and interest were at their peak. Then plan for increasing demand by looking ahead to locate big selling opportunities throughout the year, such as holidays and festivals. Finally, to avoid any items running out of stock during peak demand periods, order and store inventories properly.
Conclusion
In general, adopting the Magento eCommerce platform to start an online business provides various advantages over other options pikdo viewer. Managing inventory for a Magento business has been considerably easier thanks to Magento inventory management. However, in order to get the most out of this platform’s inventory management features, you’ll need to learn best practices or implement all of the suggested recommendations in the right way.
