Regardless of the size of your business, inventory is an essential element in the industry. Inventory management may affect the entire customer experience, and a good customer experience is of utmost importance. Bad inventory management affects business in the worst possible form, no matter how many or what you sell. With the ecommerce competition raging like never before, bad inventory management surely sinks your business in between the journey. Do you wish this for your business? The article talks about handling or sailing through a bad inventory management situation.
What is Bad Inventory Management?
Bad inventory management is a situation where you don’t have sufficient tools and processes to keep the stock in the optimal position. Sometimes there is an overstock and sometimes an understock situation that bothers the business. But the good news is that you can fight the problem with the right e-commerce Inventory Management software.
How Does it Affect Customer Satisfaction?
Bad inventory management can negatively impact your customers’ minds, affecting your business in the long run. Following are some of the consequences of bad inventory management:
Delivering orders quickly is not enough to succeed in the ecommerce business. Sometimes lack of attention and planning can result in incorrect order deliveries, further pushing your customers towards competitors. Incorrect orders may have entirely wrong or partially wrong products. Nothing is more disappointing than a customer waiting for a long time to receive a product and receiving the wrong one. One of the best ways to avoid such issues is by having proper inventory planning, and it can be achieved with the help of multichannel inventory management software like Sellershub.
Another mishap in today’s highly competitive ecommerce market is delivering damaged items to customers. Never take your customers for granted, as they have chosen you out of multiple brands and did their research after reviewing your product online. After all, if you deliver damaged items, you are damaging your reputation. Invest in good packaging material and do duel checking at the product’s shipping time.
Very Complex Return Process
Now customers have a plethora of options, and it is a fact that giant enterprises like Amazon and eBay have spoiled customers with easy processes, including hassle-free return processes. The after-sale service is essential to retain customers for the long term. A good and easy return process reduces the chances of cancelling the order and boosts exchange chances. Sometimes bad inventory management messes up the entire process and creates the worst customer experience.
One of the worst results of bad inventory management is late deliveries. These days, late deliveries are not taken in a good way as it creates the wrong impression about the brand. If sending orders takes too long, the customer gets frustrated. There are main reasons behind late deliveries, either the company does not have sufficient stock, or you take a very long time to receive stock from the supplier. But here, the good news is that efficient order management software can streamline the overall process to cut down the time to deliver products before or on time.
If there is less or no demand for the product, then the price of the product goes up. Since the unsold inventories are stored in warehouses, it adds an additional burden to the business, as it adds up to the warehouse storage charges. In case if you have too much stock, then you have to pay extra money to store those stocks, which again results in a price rise. With the rising price, you may lose the existing customers and won’t be able to attract new customers.
How does Efficient Inventory Management Software Boost Revenue and Profit?
Investing in smart inventory management software helps to solve the problem of overstock. Using the relevant software can prevent the business from an overstock situation by adjusting a few parameters like setting the product catalogue, adjusting product price according to supply, etc. This way, you can prevent extra storage space and extra storage charges. Using the software, you get real-time access to the stock and can even set up alerts if the stock is running low to manage the demand without making a loss in business.
Prevent Unnecessary Business Expenditure
One of the undeniable benefits of inventory management software is that it helps to prevent unnecessary business expenditures. Let’sLet’s understand how. The software helps to streamline the business process, and you do not have to appoint extra staff to manage countless excel sheets as the software will take care of the data. It also helps to prevent human errors plus keep you updated with the real-time inventory status so that you do not miss any opportunity.
Better Order Fulfilment
Order fulfilment means the movement of the goods right from the point you receive the order to the point when they are delivered to your customers. It is a very long process, and many business owners still prefer to do it manually, which increases the chances of error and increases potential risks.
Meanwhile, the inventory software provides a real-time view of each order placed and updates each stage of the process. It is of great help when your business gets many orders daily. The software integrates all the data so that you can track orders, prepare invoices, send notifications to customers, and accept payment within one software.
Strengthen Customer Experience
In today’s work, a good customer experience can make a huge and good impact on your business. Business needs to spend less to retain old customers when compared to attracting a new one. A good customer experience helps to retain old customers, and a good experience can be availed if the customer is happy with the product and overall buying experience. Good inventory management software helps to give a soothing experience by providing real-time product tracking and making the entire purchase process easy.
One can fight the problem of bad inventory with the help of effective and efficient inventory management software. Buy Sellershub, an online sales inventory management software, to ease the manual process and make the entire process easy. With our software, you do not need to modify the data every time because our system will do it for you. Add immense value to your business with our software. It’s high time you take off bad inventory and drive true value from your business.