How Inventory Management Helps Growth in E-commerce?
9 May 2017
E-commerce is a highly competitive space for most of the products. They have to focus on sales and marketing and they should spend. If they don’t have enough capital to spend for sales and marketing, they stay behind the competition and they are for sure having hard times growing and selling more.
The other option would be to support sales and marketing through high margins. However, the competition won’t allow them to set high product prices to gain high margins.
E-commerce businesses have a few main cost components. One of them is inventory holding and operations costs. By cutting their operations costs, they achieve price elasticity and higher margins. Through higher margins, they have more funds to spend on sales and marketing and they start growing at a steady level.