Maintaining a lean inventory approach can be highly effective for ecommerce success. Here are a few common tactics used for inventory management:
Economic Order Quantity (EOQ): A principle to balance having enough inventory to meet demand while avoiding excessive storage costs and stockouts.
ABC Inventory Analysis: Prioritizing products based on importance and investment return, focusing attention and resources on high-priority items.
Backordering: Continuously selling products even when they are out of stock, requiring quick restocking and effective communication with customers.
Just-in-Time (JIT): Ordering inventory shortly before sales to reduce warehouse costs, waste, and upfront spending. This requires reliable suppliers and a deep understanding of sales trends and lead times.
Consignment: Selling stock from a third party without paying until a customer makes a purchase, lowering risk and enabling a diverse product range.
Dropshipping: Operating an ecommerce site without holding inventory, directly selling products from other brands or manufacturers, usually for a fee, to increase product variety with lower risk.