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Ecommerce Inventory Management: The Essential Guide

By Vera Lim

Ecommerce Inventory Management: The Essential Guide

Control, automate and simplify your business with the best systems for managing multichannel inventory, customers and orders.

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Jack Phillips

Jack Phillips

4 years ago

Thank you for the interesting article. I do have a couple of comments. One thing that really differentiates many retailers online is NOT concentrating on fast moving SKUs. I like to stock a significant number of deeper SKUs, targeting the 80% of products that my competitors are not bothering to carry as they are a much smaller percentage of their sales. Chris Anderson wrote a good book on this called “The Long Tail” (http://www.amazon.com/The-Long-Tail-Business-Selling/dp/1401309666). Many of the long tail products I sell generate a significant amount of my profit as the shorter tail products are highly competitive with other retailers and have extremely thin margins where you generate little to no profit (or even small contribution margin to your overhead.). Obviously having a mix of both will help even out your cash flow will generating a profit. Regarding inventory forecasting, there are much simpler methods to generating a stock amount for you to use. Most of us that have taken statistics can generate a simple regression analysis for each sku using a spreadsheet. This works best if you carry a lot of the same inventory (most of us do on this forum). What I do is take the sales data… Read more »

Vera

Vera

4 years ago

Hello Jack,

First, I’d like to say thank you for your comments! You’ve made me think about how the long tail works within a retail setup, and I must say,it’s really interesting. The same goes for your notes on inventory forecasting: it makes a lot of sense and offers a simpler, more straightforward way to go about inventory forecasting.

Vera

Vera

4 years ago

Hey Jack,

Just wanted to say, I was really inspired by your comment, and went off to investigate the long tail of inventory – resulting in this post: https://www.tradegecko.com/blog/the-long-tail-of-inventory-3-reasons

Again, thanks for your feedback and insight!

-Vera

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