The e-commerce industry has experienced significant growth, with the market size reaching $16.27 trillion in 2023 from $14.14 trillion in 2022. The industry is expected to continue expanding at a CAGR of 15% from 2023 to 2032. eCommerce services have revolutionized the global marketplace by overcoming the limitations of physical distance between businesses and consumers. While the industry has reshaped the retail landscape, it still faces challenges such as meeting turnaround times and optimizing operations. One critical area that requires attention is the investment in effective eCommerce inventory management software. In this blog, you will get to know Why Inventory Management System can boost the productivity of a business
An eCommerce inventory management system ensures that the right product for the right order is delivered to the right person at the right time. It essentially optimizes and streamlines the two important stages of eCommerce order processing: warehousing and shipment.
Did you know that eCommerce businesses suffer a revenue loss of USD 1.5 trillion every year due to ineffective inventory management?
This makes it clear why you need to consult an IT company in Delhi and custom-make an eCommerce inventory management software for your eCommerce business.
Why Should eCommerce Businesses Invest in a Reliable Inventory Management System
Stock management is a crucial part of eCommerce business. eCommerce inventory management software helps businesses track the inventory in real-time, right from procurement through order processing to dispatch. It gives 360° visibility of the movement of stocks. A good inventory management system, like DI Infotech’s customizable inventory management software product, can help maximize stock level, minimize the cost of inventory, help prevent stockouts, and ensure on-time order fulfillment. Inventory management can essentially improve customer satisfaction, increase order processing and delivery speed, reduce wastage, and boost profitability for eCommerce websites.
For example, let’s consider an online fashion store that sells women’s clothing. Without an inventory management system in place, the fashion store can face challenges, such as insufficient stock of fast-selling products, excessive stock of slow-selling items, and forgotten stocks of items that have been unsold for years. This may result in high holding costs, lost sales, dissatisfaction among customers, and potential losses due to expired or obsolete products.
How an eCommerce Inventory Management Software Can Streamline Operations
eCommerce inventory management software system can automate manual data encoding and stock management. Even if your brand survives on human-centric stock updates, transactions, discounts, supply chain, and customer service, it cannot be streamlined manually. Here are the reasons why you need to invest in an inventory management system:
1. Allows You to Track Inventory in Real-Time
The software helps businesses track the location of inventory or dispatched products in real-time. Automating tracking helps online brands reduce human errors, decrease inventory management expenses, and build better relationships with loyal customers.
2. Provides Accurate Record all the Time
Inventory management software solutions provide accurate records of sales data, enabling managers to order only the required quantity of products to prevent dead stock.
3. Helps Prevent Overselling
Without accurate and real-time details of inventory, products can go out of stock. Consistent out-of-stock status can lead to suspension from the marketplaces. Inventory management software can help brands monitor customer demands and prepare themselves to meet these demands consciously.
4. Helps Make Informed Decisions about Crucial Business Plans
Inventory management software system centralizes data transferring and monitoring through QR code scanning and tracking, streamlining inventory allocation, tracking, and maintenance. Real-time data and information can help businesses make informed decisions across all spheres of customer value-chain.
5. Reduces Several Operational Costs
The advanced inventory management solution by DIInfoctech IT company in India is a reliable and cost-effective inventory management software that can effectively minimize operational costs around transportation, warehousing, employee wages, production, and insurance.
6. Help Mitigate Supply-Chain Challenges
Businesses always have to tackle unnecessary supply chain challenges in the eCommerce industry. They could be scarcity of raw materials, price hikes, changes in customer demand and purchase behavior, government regulations, inability to forecast demands, port congestion, etc. With appropriate inventory management software, businesses can navigate the challenges expertly.
7. Maintain Inventory Control Across All Channels
You can get a clear overview of all sales channels from a single place, allowing you to figure out the specific channels where sales are more. With real-time inventory forecasting, you can effectively maintain inventory controls across all locations and sales points.
8. Anticipate Order Value for Seasonal and Festive Buyers
An inventory management software application can assist e-commerce businesses in efficiently managing the significant increase in order volumes during festive periods, seasonal shifts, and holidays. It enables business owners to collect and analyze crucial data, including historical and seasonal trends, to discern sales patterns. This insight allows for informed decision-making in adjusting inventory levels.
Invest in DIInfotech’s web-based Inventory Tracking and Management System today to optimize operations and maximize profitability.
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