This article for anyone just starting out in eCommerce answers the question: “What is an eCommerce Inventory?”
Maybe you’re thinking of starting an online business, and you’re learning your way around all the business jargon. Or maybe you’ve taken the plunge and already started selling stuff. You’re doing well at making money, but playing catch-up with the technical side of running a business.
Either way, we’re here to help.
So, what is an eCommerce inventory?
In Wikipedia language, the word inventory describes
the goods and materials that a business holds for the ultimate purpose of resale.
Let’s unpack that.
Many eCommerce entrepreneurs start their business trading from home. If this is you, your inventory is all the stuff you have stored in your spare bedroom or garage that you’re planning to sell online.
If you’re a bigger business, like Amazon, and you distribute your products through warehouses, then it’s all the products in your warehouses that makes up your inventory.
In other words, if it belongs to you right now, and you’re planning to sell it online, then it’s part of your eCommerce business inventory.
How do you add to your inventory?
As soon as you buy anything that you’re planning to sell on to make a profit, it becomes part of your inventory. Whenever you sell an item to a customer, that item is no longer part of your inventory.
It’s important to manage your inventory well.
That’s for two reasons.
First, by tracking your inventory, you know when to order more goods from your supplier. That way, you’ve always got stuff in stock for your customers to order.
As a customer, it’s frustrating to go to an online store then find what you want is out of stock. Manage your stock badly, and customers will go elsewhere to find a shop with what they need in stock.
Second, if you manage your inventory badly, you can end up having loads of stuff in your inventory that you can’t sell. It just sits in your storeroom, and you can’t do anything with it. You’ve wasted money that you could have spent on stock that would sell. Spend all your money on stock that you can’t sell, and you won’t have anything left to buy stock that you can sell.
This can be a massive problem. Buying too much of the wrong stock has led to businesses going under.
That’s why it’s so important to know what an eCommerce inventory is and how to manage an inventory.
Manage your inventory well, and you will have a profitable, successful business.
*Need help managing your eCommerce inventory? Veeqo makes inventory management simple. Click here to take a look at Veeqo’s features and see how Veeqo has helped other business owners, just like you.
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