Author: Fabricio Miranda

In business, there’s nothing like the pain of knowing you could be making more money than you already are.

Managing inventory is arguably the hardest task of any retail brand. That is especially true for e-commerce, where sales, advertising, payments and even the customers are digital and can be managed with the click of a button, while inventory is still physical and needs real-world interactions to be produced, moved and stored. 

In the early days of retail, a small business could survive and thrive while operating a single storefront with in-store only sales. Though some businesses still operate this way today, anyone in the retail game knows that multi-channel inventory is becoming less of an option and more of a necessity, especially if you want to scale.

Measure twice, cut once. The direct meaning of this common saying is relevant for carpenters, but its symbolic meaning is important for businesses in all industries. 

Every ounce of preparation is worth its weight in gold, especially when it comes to processes and practices that have significant repercussions when done improperly. Demand planning for your supply chain is one such process. 

Have you ever sold a product you didn’t actually have in stock? If so, you’re not alone: 34% of businesses have been forced to delay shipping a product because they sold something they didn’t have in hand. 

Though not uncommon, these types of mistakes aren’t great for your customers’ experience. So, how do you manage inventory replenishment processes efficiently enough to prevent it?

Inventory is the lifeblood of any product-based business. Without the right products, in the right place, at the right time, you can lose sales and customer trust.  

Would you hop in your car to drive somewhere if you knew you had less than 65% chance of arriving where you intended to go? When you operate your business without end-to-end supply chain visibility, that’s what you’re doing with your inventory. 

A trusted tool for every modern retailer, the right sales forecast can lead to better purchasing decisions and healthier cash flow. And that’s crucial, because purchasing and cash flow are two of the top 10 areas where most ecommerce businesses fail.

But whether you’re a new or experienced store owner, the task of getting sales forecasting right can leave you feeling overwhelmed — especially when attempting to forecast for new product launches.

E-commerce has ushered in the modern-day gold rush.

In the US alone, e-commerce sales are tipped to hit over $563 billion by 2025, while global e-commerce will account for 22% of retail sales by 2023. 🔥

But with the e-commerce market also growing increasingly competitive, you’ll need to do something special to stand out from the crowd.

That’s where supply chain optimization comes in.

Status Before Flieber (July 2019)

• 5 years in business
• 200 items
• $1M in Amazon sales

Table of contents

• What are the main inventory problems for online retailers?
• The harsh reality of poor inventory management
• 6 inventory ROI formulas every platform should have
• How to succeed at inventory optimization long-term

Ah, inventory management. Though we hate to admit it, it’s the one area of the business most ecommerce entrepreneurs would rather not think about.