Check out the entire article and know what is an eCommerce inventory management system, its uses, the procedure to select a viable system for your business, and every other detail that you should know about before proceeding.
Inventory is the soul of any business. The inventory or the stock is the total number and amount of finished goods, raw materials, and work-in-progress available with the organization at any point in time. When you have sufficient inventory in your business, you can ensure that all your existing and potential orders can be easily satisfied.
An inventory management system can help you with this.
If you are an online seller or an eCommerce business, you need to maintain sufficient inventory in your business. This allows you to deliver the orders on time and as expected. Additionally, you can also manage the inventory with the help of an eCommerce inventory management system. However, before you go on deciding an IMS for your business, there are certain thighs you should know about the software that can help you make an informed decision related to the same. So, with the help of this article, we will understand the uses and importance of an inventory management system for eCommerce.
What is an eCommerce Inventory Management System?
Just like the name of the software infers, an eCommerce warehouse management system (inventory) allows your business to manage the inventory present in the business currently as well as its future requirements. With the help of this software, you can also keep a track of the movement of the inventory.
Another one of the greatest features of this software is that it allows you to automate the complete process of management rather than entering and managing everything manually. Additionally, with an effective IMS by your side, you will be able to get real-time information about the current state of the inventory.
What are the Uses of IMS or ECommerce Order Management Systems?
The inventory of any business comprises its working capital at any point in time. This capital requires constant and instant recording of the incomings and outgoings from the stock for better product management. Moreover, the eCommerce warehouse management system also allows you to track and forecast the inventory needs quite accurately.
The eCommerce inventory management system can also help you find out the present and future needs. Additionally, when you go through the data collected using IMS, you can also ascertain the sale pattern of the inventory across different channels. Once the inventory sale pattern is ascertained, the top-level management can devise a plan of action to focus on the important sources of the sale in the business.
You can modify and set up an IMS as per your requirements. This allows you to understand the movement and storage of inventory in a specific style, color, pattern, and other attributes. Following the same, you can then understand how much to invest in what type of inventory for the maximum profit.
One of the most amazing benefits of the IMS is that it reduces the cost of managing inventory to a minimum. Instead of hiring employees to do data entropy and management manually, this online solution is well-suited for your requirements. As an optimal eCommerce warehouse management system does everything for you from scheduling order dispatch to creating invoices, from tracking the stock to its management and more, an IMS can be a great help for businesses and their personnel.
Factors to Consider Before Selecting the Perfect ECommerce Inventory Management System
A lot of eCommerce businesses may need one of the most viable eCommerce order management systems when the number of orders starts to increase and the inventory grows beyond manual control. In such a case, if you take care of certain factors, you can easily get the perfect eCommerce inventory management system for your business. Some of these factors are:
1. Detailed and Brief Reporting
An IMS should be able to handle the reporting requirements of the inventory for your business. It must be able to create detailed or brief reports related to the inventory as sought. Additionally, the software should also have various filters to help you get the best results out of a specific range of data.
Another thing that you should expect from the eCommerce inventory management system is ease. The software should be so easy to use that even business managers can easily operate it without having to hire specific personnel for it. As the tool will be used repeatedly and, at times, daily, it’s important that the tool delivers ease of use.
3. Compact and Versatile
The IMS should be versatile and compact as well. If the software takes too much of the system’s resources, the business may face problems using it. Additionally, the tool should be versatile and mobile so that business managers and owners can take the help of the tool anywhere they need and get the required information, even from home.
4. Well-Connected with Other Platforms
Lastly, you can expect the eCommerce inventory management system to be well-connect with other platforms as well. For example, as you are selling the products online using your eCommerce portals. The software should be integrated with this platform as well. This way, the inventory will be update in the software in real time. And you will not face any problems like falling short of orders, insufficient inventory, etc.
Get Your Inventory Right!
How Can an ECommerce Inventory Management System Provider Help You?
Although you have the previously listed factors, by your side. To help you get an eCommerce warehouse management system, selecting an accurate product for your business is not an easy task. However, a seller or provider of IMS can easily help you choose the perfect tool from a variety of options.
- You can ask the provider if the IMS supports purchase order management and recording. This feature can help get physical statements and invoices of orders. You can use the same later if needed.
- You can ask the provider to share a product that is well-integrate with other platforms. This includes all the platforms generating the revenue, sources of inventory, eCommerce platforms, and every other platform concerning the inventory.
- Apart from this, you can also assure that the software works on a real-time basis. This means that all the transactions involving the inventory should be instantly update on the software. This will allow the management to keep an eye on the accurate volume of the inventory and make decisions accordingly.
- Another most commonly asked and sought feature of any eCommerce inventory management system is tracking. The product provided by the seller should be able to track the inventory accurately and even show the goods “soon-to-be-expired” goods for better management. This will allow you to control the perishable inventory quite perfectly.
- Sometimes, customers return the items. Hence, the IMS provider should offer a product that can easily track the returns as well as the upcoming orders and update the inventory accordingly.
- You may also ask him to specify and explain the modes of reporting offered by the software. This way, you can choose the perfect tool that meets your eCommerce order management systems requirements with ease. You can select a tool that presents the report in the manner you desire.
- Accounting and inventory management are interrelated to each other. Hence, your vendor should offer a smart IMS that integrates the accounting requirements with the inventory. Thereafter, the software may even help you create any financial statement according to your requirements.
- Lastly, another great feature that can help your business in inventory management is production planning. You should ask your IMS seller to present a solution. That can take care of the production planning requirements as well. As soon as the inventory reduces or reaches a benchmark. The tool should intimate and inform the production department to deliver or manufacture the required products.
ECommerce Inventory Management System and Its Uses: The Conclusion
So, it must be clear to you by now that eCommerce order management systems are quite important for a business. With the help of the IMS software, you can easily manage different types of inventory of different sizes in real-time. Additionally, the software will also take away over half of the problems associated with the management of inventory.
For further assistance and help, you can contact and communicate with the experts at The Ledger Labs. We will assist you with ECommerce Accounting Services and techniques as well as help you with inventory management.