Businesses need a Shopify inventory management app to be successful.
Without accurately tracking and managing inventory, it’s extremely difficult to fulfill orders, have items arrive on time, and keep customers coming back.
Let’s jump in.
What Is Inventory Management?
Inventory management is a process for obtaining, keeping, and selling inventory—both raw materials and finished goods.
When it comes to a company’s inventory, it must be accurate.
It’s better to have no data than to have it be inaccurate.
It’s critical to know the correct amount of goods, at the right time, in the right location, and at the right cost. Many aspects of a company’s supply chain have to be managed, and inventory is one of them.
Example: Max wants to start a table-making business. He needs different sizes of wood for each table he builds. A ten-pack of each size he needs is purchased from his supplier. All of this is now part of his company’s inventory. Max’s inventory levels will change as he transforms raw materials into tables and sells them.
All of this is inventory management.
How Does Inventory Management Work?
Inventory management means keeping track of what is being shipped out, returned, and what is currently in stock.
Every Shopify business relies on effective inventory management to keep its shop stocked with the right products at the right time. However, as the business grows, inventory management becomes more difficult. The best system connects every supplier that is part of your product fulfillment process to your sales channels so the order data all flows well.
A successful inventory management strategy strikes a careful balance between having too little and too much inventory.
Why Is Inventory Management Important To Merchants?
The old-school, pen-and-paper technique becomes obsolete quickly. It increases the risk of human error which results in costly mistakes. This works for simple brands selling single products from a single location. But, that’s it.
Growing businesses on Shopify need to use inventory software to help keep track of goods. These robust systems offer features like stock notifications, automatic purchase orders, year-end inventory reports, user permissions, and more.
Ideally, you get control and visibility into inventory movement from suppliers to customers and everywhere in between. There should not be any black-box moments where you don’t know what is going on. If you can’t provide a status update to your customer if they ever have a question, it will eventually become a problem you’ll need to solve.
The best Shopify inventory management software syncs data in real-time when things are received, sold, returned, or exchanged online or in a store. As a result, you get a clear inventory picture at all times.
Inventory management has many benefits, such as:
Decreases inventory costs
It’s easy to determine inventory levels if you know the number of goods on hand and how much you need. Simply, this reduces storage and transportation expenses.
Don’t upset shoppers or miss out on sales by running out of stock. Shopify inventory management systems help determine how many goods are needed without going over or under the “just right” amount. Respond quickly to sales and stock information by restocking, shifting products from another location, or drop-shipping to the consumer.
Limit spoilage and obsolescence
Don’t let products expire or become outdated. Cosmetics and food items, which have a relatively short shelf life, are examples of perishables. Proper inventory management helps mitigate loss from products sitting on shelves too long and reaching a sell-by date. Keep everyone aware of what products need to move and when.
Improves order fulfillment
Monitor accurate inventory counts across sales channels such as retail locations, websites, and third-party merchants. As a result, customers get their orders faster.
As sales increase, Shopify inventory management improves the efficiency of your systems. Order fulfillment runs more smoothly, reducing mistakes, consumer complaints, and staff stress.
Inventory loss due to theft, product damage, vendor errors or fraud, staff theft, and administrative blunders is known as shrinkage. Subsequently, better retail inventory control can cut shrinkage in half.
Increase customer satisfaction
Specifically, faster delivery times and fewer product out-of-stocks lead to increased customer satisfaction.
Look at past sales performance and existing inventories to predict future sales, growth, and capital requirements. Budgeting for marketing campaigns, product development, and staff are all guided by these projections being accurate.
The Best Shopify Inventory Management Apps
With the correct Shopify inventory management app, you can manage sales channels and make precise predictions about supply and demand. Additionally, track inventory details and plan for seasonal shifts in the market.
Let’s take a closer look at a few of them.
QuickBooks Commerce gives a single source of truth for all your Shopify inventory management needs. Keep track of sold items, manage customer data, estimate future sales, and sync orders across all channels.
Shopify inventory management options allow you to keep tabs on your stock levels and avoid running out of products. When you use QuickBooks Commerce, your stock levels are automatically updated, and purchases across numerous locations and warehouses are tracked.
QuickBooks Commerce will make it easier to maintain the stock levels of several warehouses for your organization. As a result, you can move goods between warehouses and send or receive orders to specific warehouses.
Lastly, QuickBooks Commerce is also ideal for wholesale businesses. Accept bulk orders, and provide customers with quotations or invoices via email. You can even create your own self-service system.
Skubana is a back-end solution for synchronizing data on orders, inventory, cost, and profitability.
Get profit forecasts based on product sales velocity and trends. Stop second-guessing if the information you’re working with is correct.
Alternatively, narrow your focus to a certain sales channel, product, or listing to see how it is performing. Discover the best and worst-selling products. Or, predict when you’ll run out of stock for a product.
The best part, Skubana is a Shopify inventory management system built by sellers, for sellers. You’ll find everything you need to monitor your company’s success in one place. Incoming stock, fulfillment performance data, and low-stock levels are available through the Skubana dashboard.
Additionally, Skubana’s customer service is excellent. Their customer service department is set up so that you’ll have a single point of contact for all of your inquiries.
Sellbrite is a robust Shopify inventory management app that integrates into the checkout process of online marketplaces such as Etsy, Amazon, and eBay. People that use Shopify get assistance from Sellbrite to sell items on some of the top online marketplaces in the world.
Businesses get a centralized interface for order fulfillment. And, when you combine your company with Amazon’s Fulfillment service, you get access to several warehouses.
Use this app to provide a comprehensive view of your business’s sales.
Then, you can effortlessly list your new goods in all of your customers’ favorite shopping sites. Sellbrite even updates and syncs your inventory to prevent overselling goods.
4. Order Tagger
If you’re looking for a way to cut down on the tedious work of organizing and completing orders, you’ll want to look into automation.
With Order Tagger, you can create an infinite number of workflows that compare orders to predefined standards and criteria.
As a result, order tagging is an excellent approach to consider.
When an order is abandoned, made, partially completed, fulfilled, or canceled, a workflow runs to help the fulfillment process. Additionally, you can tag special-needs orders so they can be handled differently by your staff, fulfillment partners, or shipping suppliers.
So, to add Shopify order tags, simply use triggers like ‘order generated’ or ‘refund created.’ Next, use MESA’s built-in tools like Email, SMS, and Approval, to make unique experiences for customers that cancel orders or haven’t bought in a month or more.
Instead of going through each and every order, you and your staff can manage all orders from a single list.
In another flow, you can automate repetitive order fulfillment tasks, highlight orders, filter pre-orders, flag orders of a given weight, and check order status. Additionally, use tags to arrange your purchases depending on the delivery date, zip code, and more. Tags are a powerful way to manage your Shopify data so, use them to help manage your inventory too.
Choose The Right Shopify Inventory Management App
When searching for the ideal software for managing inventory on your Shopify store, you should consider other factors such as whether or not it offers useful integrations with other applications (e.g. checkout finances). Additionally, if your company has both an offline and online presence, a POS integration may be beneficial.
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