Jules
3 min read
Sep 11, 2019

Key Points:

  • There’s really no “one size fits all” approach when it comes to proper eCommerce stock control and choosing the right eCommerce inventory management system
  • Using the right eCommerce stock control strategies can help you maintain a healthy inventory turnover and keep your shelves stocked with just the right amount of product
  • Proper inventory management for your eCommerce site is crucial for the success of your online business

Out of stock.

Three of the most dreaded words for online shoppers and merchants alike!

Annually, online retailers lose revenue worth over $1.75 trillion as a result of not efficiently managing their inventory. That means a huge opportunity to boost sales for your company by just using the right eCommerce stock control strategies.

Fortunately, with some proper eCommerce inventory management, your business can indeed effectively manage its stock and keep your customers happy and the bottom line healthy. Here’s how to do it!

How to Avoid Overselling

There’s really no “one size fits all” approach when it comes to proper eCommerce stock control and choosing the right eCommerce inventory management system. That means it’s important to experiment with what works best for you and to use various strategies to figure out what works for your business.

Using some time-tested eCommerce inventory management methods, here are eight ways to prevent overselling!

1. Set A Standard Level of Stock

This simply means the minimum number of products that must be available in your stock at all times.

With this eCommerce inventory management strategy, you’re able to restock your inventory once the number of available products falls below your set standard. Although it takes time to master this, it can save your company a lot of time and money in the long run!

By using this inventory management strategy for your eCommerce business, you’ll be able to avoid inventory overselling and, in turn, minimize the number of customers impacted by not having the products they want in stock. For maximum effectiveness, your stock alerts should be based mainly on the frequency of your customers’ orders, especially for high-demand items.

2. Utilize the FIFO Method

FIFO means “first in, first out.”

In other words, the oldest inventory, being the first in, should be sold out first before the newer stock is offered to customers. This eCommerce stock control strategy is especially important to retailers who sell perishable goods. This way, you don’t end up saddled with expired products.

Even when you sell products that aren’t perishable, having them sit for a long time on the shelves leaves them worn out and, should your supplier change the packaging of their products, the old stock begins to look obsolete - meaning it’s especially important to sell the older stock first!

3. Maintain Back-Up Plans

As a business owner, you should always have backup plans, especially when it has to do with your eCommerce inventory management system. You should plan for contingencies so that, should you accidentally oversell, you’ll still be prepared for the worst.

What happens when there’s an unexpected spike in sales? Or if you experience a reduced cash flow and you’re unable to order more stock? What if you only have limited space to store additional products?

Having a backup plan will save you a lot of headaches - and the potential loss of customers!

4. Carry Out Regular Inventory Audits

Carrying out regular inventory audits is crucial to avoid eCommerce overselling. There are several methods to do this, including:

  • Physical inventory audits once every week, month, quarter, or year
  • Spot checking certain products that sell frequently
  • Doing special inventory counts on products prone to inventory errors in the past

Likewise, you can also adopt strategies and methods such as utilizing a perpetual inventory system or the just-in-time inventory system to see what works best for your business!

5. Utilize Inventory Management Software

Gone are the days when business owners have to depend only on spreadsheets to keep track of their stock. What if someone mistakenly deleted the edits you made on the spreadsheets?

This is where the use of eCommerce inventory management software comes in.

Just a few to keep in mind include:

All of these and more can help you manage your eCommerce inventory much more cost-effectively and efficiently!

6. Maintain Safety Stock

This strategy is all about taking precautionary measures – buying more stock than you need, but for a good reason!

Maintaining a safety stock can act as an insurance policy if overselling does occur. If a certain item becomes hot and sells out fast, for example, safety stock can prevent it from becoming totally out of stock until you formally reorder or manufacture it again.

This method is especially useful if your company offers non-perishable goods. Notably, this safety stock shouldn’t be listed as part of the available stock.

The only downside to this strategy is that you’ll need additional space where the extra products will be stored. If you have a larger warehouse though, then you have nothing to worry about!

7. Take Good Care of Your Warehouse

You don’t want a situation where you actually have the goods ordered but because your warehouse isn’t in good condition, they’ve been badly damaged. For example, you might have 20 items left, but 10 are badly damaged and not suitable to be shipped to your customers. That means lost profit is sitting right there on your shelves!

In order to avoid this scenario, always take good care of your warehouse. Check for water leaks, mold buildup, broken shelves, and anything else that poses a threat to your inventory.

8. Accurately Predict Product Demand

Finally, this eCommerce inventory management strategy entails accurately predicting demand for products. Although this isn’t easy, it’s doable - and important!

Some of the factors that should help you to accurately forecast the demand for certain products and maintain effective inventory management for your eCommerce site include:

  • Prevailing economic conditions
  • Yearly business growth
  • Sales made the previous year in the same period
  • Market trends regarding product popularity
  • How demand for your competitor’s products stacks up

This unique strategy will help you have enough products in your inventory, all-year-round!

Prevent Overselling with eCommerce Inventory Management

Proper inventory management for your eCommerce site is crucial for the success of your online business. Using the right eCommerce stock control strategies can help you maintain a healthy inventory turnover and keep your shelves stocked with just the right amount of product.

Try using these strategies to prevent overselling - and seeing that dreaded “out of stock” message!

TABLE OF CONTENTS

Key Points:

  • There’s really no “one size fits all” approach when it comes to proper eCommerce stock control and choosing the right eCommerce inventory management system
  • Using the right eCommerce stock control strategies can help you maintain a healthy inventory turnover and keep your shelves stocked with just the right amount of product
  • Proper inventory management for your eCommerce site is crucial for the success of your online business
Get Your Ship Together.

By submitting the form, you agree to receive marketing emails from Easyship.

Save up to 91% on Shipping. Try for free.

Effortlessly compare 550+ courier services with one global account. Instant discounts. Start in minutes.

Shipping Internationally? Unsure What Tariffs or Duties Apply?
Try our FREE Tax & Duty Calculator

Trying to stay up to date on the latest cross-border shipping and import requirements? Get an instant estimate of all applicable taxes and duties for every country across 220+ global destinations or sign up and take advantage of our in-built HS Code lookup tool.

Calculate Tax & Duties Instantly (Free Tool)
Ready to Stop Overpaying for Shipping?
Try our FREE Shipping Rate Calculator

Looking for the cheapest way to ship a package? Get an instant shipping quote and compare rates from 550+ courier services across the United States, Canada, UK, Australia, and more. Simply add your package size and delivery location, and you'll find the best deal in seconds.

Calculate Rates Instantly (Free Tool)
Planning Your Campaign?

Get in touch with us now and our shipping consultants can give you a detailed quote and additional info to help with your campaign.

Get in touch
The Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
The Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
Get in touch with our fulfillment experts!

We believe simple pricing is the best pricing. Get a quote with a simplified pricing structure and no hidden fees.

Contact us
Need help fulfilling your crowdfunding campaign?

We provide the necessary tools needed to keep you on budget for shipping and to safely deliver your product to backers around the world.

Learn more
Try our duty & tax calculator!

Need to estimate your shipping duties & taxes? Our calculator can give you an idea of what to expect.

TRY IT NOW
Save up to 91% on Shipping. Try for free.

Compare 550+ courier services with one global account. Start in minutes.

GET STARTED FOR FREE
Get a Free Quote for Your Campaign

Receive a personal cost estimate for your crowdfunding campaign from our trusted global fulfillment partners. Easyship is a certified Indiegogo partner.

GET FREE QUOTE
Looking for great rates from a top courier?

Save up to 74% on UPS shipping rates by shipping with Easyship. You can run a quote and generate your first shipments in literally minutes!

SHIP WITH UPS TODAY
The cheapest way to ship for eCommerce

Get instant access with volume-discounted shipping rates. Save up to 89% off on USPS, UPS, FedEx, and more. Easyship is free for 50 shipments each month.

SIGN UP FREE TO SAVE
Find your perfect fulfillment partner with expert help

Let Easyship connect you to the largest shipping and fulfillment network on Earth. You’ll find trusted partners for all things logistics. Guidance is free from our global shipping experts.

ASK AN EXPERT
Don’t miss our money and time-saving features!

Explore the powerful features that 100K+ merchants use to ship smarter, not harder. Shipping automation, live rates at checkout, live duty and tax – all free to try with Easyship.

EXPLORE ALL FEATURES
Start saving on shipping in seconds

Create your free Easyship account to streamline shipping and save with discounted rates. No hidden fees. No minimums. Just savings.

CREATE YOUR FREE ACCOUNT
Create Your Shipping Policy Free

Use our guided walk-through to build the perfect shipping policy for your eCommerce business.

CREATE YOUR POLICY FREE
Looking to intergrate your Shopify store?

With 550+ pre-negotiated shipping services available with discounts of up to 91%, you can save time & money today when you integrate your Shopify store with Easyship

REGISTER FOR FREE
Use Easyship Free Every Month

Easyship is free to use for 50 shipments every month. You’ll save big on our discounted shipping rates up to 91% off, and save time with smart automation. Signup is fast and free.

CREATE YOUR FREE ACCOUNT
Don’t miss the key steps to fulfillment success

Follow the easy path to fulfillment success. Easyship’s free fulfillment checklist provides a proven step-by-step so you can ship at scale without the guesswork.

VIEW THE CHECKLIST
Ship for less with any courier, guaranteed

Save up to 89% off all shipping rates. Easyship offers the guaranteed cheapest volume-discounted rates on the market from USPS, UPS, FedEx, and 250+ global couriers.

SIGN UP TO SAVE
Don’t miss all our money and time-saving features!

Explore the innovative features that 100K+ merchants use to ship smarter, not harder. Shipping automation, live rates at checkout, live duty and tax – all free to try with Easyship.

EXPLORE FEATURES
Want the cheapest rates?

Register for an Easyship account today and you will gain access to the cheapest rates, instantly.

REGISTER FOR FREE
Watch out for international duty and tax!

What exactly does it cost to ship cross-border? Use the free duty and tax calculator from Easyship to view accurate import costs for any shipment to anywhere.

USE FREE
Protect Your Crowdfunding Budget from Cost Creep

Prices are rising, deliveries are slowing. Get up to speed on the state of crowdfunding shipping with expert Easyship analysis and keep your campaign on budget.

LEARN MORE
Discover the Cheapest Shipping from USPS, UPS & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 550+ courier services at a glance.

GET A FREE QUOTE
Discover Your Cheapest Way to Ship

Find the guaranteed cheapest shipping in seconds with Easyship’s free shipping rate calculator. Compare discounted rates from USPS, UPS, FedEx, and 250+ global couriers at a glance.

COMPARE RATES FREE
Compare the best rates in seconds

Get an instant estimate of the cheapest shipping rates with our free calculator tool.

GET FREE RATE QUOTES
Save money on every shipment

Save up to 91% off shipping with Easyship’s discount courier rates. Create your free account to save instantly on 550+ courier services, including USPS.

CREATE YOUR FREE ACCOUNT
Ready to ship internationally?

Get help from our global shipping experts on warehousing, global shipping and to connect with our network of trusted 3PLs.

GET FREE SHIPPING TIPS
How’s Your Covid Shipping Policy?

Use our free shipping policy generator to formulate your safest, most customer-friendly shipping policy in seconds.

GET YOUR SHIPPING POLICY
Try Pre-generated Return Labels For Free

Register for an Easyship account today and get 30-days access to a Premier plan with access to Pre-generated Return Labels.

Generate Return Labels Today
Discover the Cheapest Shipping from USPS, UPS® & FedEx

Find the guaranteed cheapest rates for any courier in seconds with Easyship’s free shipping rate calculator. Compare discount rates from USPS, UPS, FedEx, and 250+ couriers at a glance.

GET RATE QUOTES FREE
Get Up to Speed On Covid Shipping

Explore our Covid shipping resources to make sure your shipment arrives on time and in good condition.

LEARN MORE
Free Shipping for the Holidays 101

Learn how the leading brands offer free shipping, calculate costs, and ship on a budget for the holidays in our free shipping guidebook.

LEARN MORE
Your Perfect Shipping Policy, Ready in Minutes

Use Easyship’s free shipping policy generator to formulate your perfect holiday shipping policy for returns, tracking, and more. Just follow the prompts and you’re done!

GET YOUR SHIPPING POLICY
Scale Your Growth Internationally With Pro Tips

Learn how to ship internationally without missing a step. Our case studies show you proven tactics for shipping worldwide from Easyship users who did it right.

READ CASE STUDIES
No items found.
Share on:

Related Articles

No items found.