Last Updated | June 10, 2022
The correct inventory management plan and methods are required for both large and small online stores.
Inventory is a big financial asset, both in terms of the purchase price and storage cost, if you monitor your own stock or partner with an independent reseller.
In truth, retailers lose billions of dollars each year due to mishandled inventories.
Other likely sources include vendor issues, administrative or documentation problems, order refunds, and shoplifting.
In 2017, the National Retail Federation polled a number of significant brands.
The next post will walk you through how to keep track of your products step by step. We’ll go over BigCommerce features, introduce tools to assist you and provide expert guidance to help you discern between generic roadblocks.
Why BigCommerce Inventory Management is Important and How to do it?
Improve the accuracy of your inventory tracking.
With just over 40% of clients shopping at multiple locations, keeping track of their behaviors has gotten increasingly difficult.
Similarly, product monitoring across both networks becomes increasingly difficult.
Issues such as systems not communicating with one another can lead to inventory discrepancies, which account for 15% of all inventory in multichannel eCommerce.
If you apply the correct tools and methods, your product management will be on track.
Make decisions based on data.
If you don’t maintain track of your inventory, you’re more likely to have overstock and out-of-stock incidents.
If you handle inventory control well, you’ll have access to more information. Inventories and sales statistics show how frequently, how much, and how quickly stuff is sold.
It can also help with data-driven decision-making if you look at customer behavior.
This involves tracking the performance of particular SKUs, keeping track of the best and worst-selling brands, and keeping track of product numbers.
It’s not only about keeping track of the right stock figures when it comes to stock management. It ultimately comes down to obtaining valuable data from all reports and applying it to your company’s goals.
Instead of working harder, work smarter.
Employee time is consumed by manual stock monitoring, seeking for “missing” products, making manual inventory changes in eCommerce sites(other platforms include Woocommerce development and Salesforce Commerce Cloud), and dealing with consumer problems caused by inventory errors.
Using BigCommerce to streamline inventory control allows you and your team to be even more productive.
Third-party applications and warehouse management systems will further automate processes, minimizing the need for manual updates and reducing the danger of human mistakes.
What is BigCommerce inventory management?
Inventory management in BigCommerce refers to the process of ordering, arranging, and exploiting a company’s inventory.
It controls raw materials and final products, as well as the storage and handling of raw materials, parts, and finished goods.
For organizations with complex supply networks and production processes, balancing the risks of product gluts and shortages is especially difficult.
To achieve these balances, companies developed two key product control approaches: just-in-time (JIT) and materials requirement preparation (MRP).
Financial services firms, for example, lack physical inventories and must instead concentrate on service process management.
Why BigCommerce Inventory Management is Important?
These days, the necessity of proper inventory management cannot be overstated. A solid inventory system will allow you to see all of your things down to the shelf and bin level in several locations if needed. It will prevent stockouts, provide an adequate lead time for stock replenishment, and provide you with an estimate of the value of your stock at any given time.
Physical inventory is often the most expensive part of a company’s budget. The ability to effectively manage this cost could make the difference between success and failure.
Examine whether inventory transfers across sites are recorded promptly, conveniently, and precisely. Your response will disclose a lot about how effectively your method works in practice.
How to Setup BigCommerce Inventory Management?
Setting up BigCommerce inventory management.
Bigcommerce Support Services lets you keep track of product levels and update them as they change. This can be controlled at the product level, this one product can be limited by the amount of stock on hand, while another can be configured to enable orders at all times.
When tracking is disabled, the product is assumed to be always available and always on hand, even if it isn’t. Within your reports, the system will still provide information on how many of each product were sold.
- Navigate to Products > View in your BigCommerce dashboard to accomplish this.
- By clicking on a product’s name, you can edit it or add a new one. Click the Inventory tab on the Add/Edit Product screen.
- For this, choose Inventory Tracking.
- Stock Level – This indicates how much of a particular product you presently have on hand.
- Low Stock Level: This is your par level if you have a low stock level. When your inventory levels hit this level, you’ll receive a message that you’re running out of stock.
You may also keep track of inventory by product. This is useful for products that have a variety of alternatives, such as shirts in numerous colors.
Choose Track inventory by options from the Inventory tab. Then, while changing an individual option’s SKU or establishing a new one, you can enter a stock level in the Options & SKUs page.
Prepare for out-of-stock situations in advance.
A product will eventually run out of supply. It occurs to every retailer, and it will almost certainly happen again. Being prepared for that initial event as part of BigCommerce inventory management allows you to control what happens.
Bigcommerce Development Company has options for when a product runs out of stock. When a product’s inventory hits zero, these parameters control what a customer sees and what actions are taken.
In BigCommerce, you can configure order adjustment behaviors.
The next step in inventory management is to automate what happens in your system when orders are placed. In this manner, after your inventory counts are determined, each product sold will be accurately updated.
The third field in the Advanced Inventory > Settings section, as seen above, regulates order adjustment behaviors.
Customers’ Stock Levels are Displayed
BigCommerce inventory management options allow you to choose whether or not to inform customers about leftover product quantities. Make use of these alternatives to instill a sense of urgency in your audience.
PAR Levels Trigger Notifications
To ensure you’re never out of supply, your product and inventory manager must keep track of product levels.
When any product approaches the low inventory account you enter for items in the inventory settings, BigCommerce inventory management allows you to establish notifications so that you receive a warning.
When stock counts fall below this threshold, an email is sent to the supplied address informing you that it’s time to replenish.
Backorders are permitted.
Use BigCommerce’s pre-order functionality to run back-orders in inventory rather than marking things out of stock. Customize the pre-order message to let customers know the product is on backorder. If you know when a back-ordered item will be available, use it.
How to Optimize inventory management in BigCommerce?
Best Practices for BigCommerce Inventory Management:
Calculate the amount of time it will take to refill.
Factoring in the time it takes to refill particular products is the easiest approach to plan and guarantee you always have inventory on hand.
When setting your par levels and low stock notifications, keep this in mind. Set a higher low inventory threshold for things that may take longer.
Keep track of events, holidays, and seasonal difficulties that may affect your resupply times and modify your par levels as needed.
Keep an eye on your parcels.
Make those inventory counts correct across all iterations of the product if individual products are also sold in bundles. You don’t want a product to run out of supply while a bundle is still offered. That
Use automation to your advantage.
Build a tech stack of apps and software to automate your inventory management and reduce human work. This allows for speedy reordering of low-stock items, immediate updating of restocked products on your eCommerce platform(other e-commerce platforms include Salesforce Commerce Cloud Development and Bigcommerce Integration), and improved inventory accuracy.
If you have many online storefronts, automation is very vital. In that situation, a software like Shogun page builder, which features a Sync feature that allows you to copy pages from one store to another, is a good choice.
Duplicate material will take significantly less time to add to your stores this way.
Invest in a centralized inventory control system.
Inventory management can be optimized with a complete warehouse management system, in addition to 3rd party apps that interface with BigCommerce.
These centralized solutions interface with all elements of your organization and provide you with complete control over your inventory.
This includes inventory management that is centralized and integrated with numerous online sales platforms.
A centralized system is essential if you’re selling on your BigCommerce web design company site as well as other channels like social media and marketplaces like Amazon.
Determine what your key products are.
Because the popularity of each product you sell varies by consumer niche, some will sell faster than others. Understanding which of your products are the most popular is key to BigCommerce inventory management.
The ones you never want to run out of are your core items. You can set more precise par levels, prioritize supply replenishment, and organize your warehouse for a more efficient pack and dispatch once you’ve identified your essential products.
Understand your product’s lifespan.
Even the most popular things won’t last indefinitely. It’s critical to keep an eye on your BigCommerce merchandising reports on a frequent basis if you want to follow the lifespan of your products. You can make a data-driven decision to cut reorder volume while you change marketing if you notice a declining trend in sales.
Customers don’t want to pay full price for out-of-season merchandise that’s been sitting there for a while. You also don’t want to be saddled with the costs of an excess inventory. We propose three approaches to inventory management and avoiding residual stock:
- When entering items into your inventory management system, create season codes with style numbers. This can make season-by-season sales and inventory analysis a lot easier.
- Determine your exception management parameters and action procedures for dealing with those exceptions. Run your sales and inventory statistics on a regular basis to help you spot any anomalies early in the season.
- Retail merchandising techniques should be paired with inventory management best practices.
Best BigCommerce Inventory Management Software Includes?
A number of inventory management apps are available in the BigCommerce app store, which can help you optimize operations and get more control over your inventory.
Other apps offer more complete functionality around centralized inventory management, while some free apps incorporate extra (but restricted) tools to automate inventory control. You might want to look into the following apps:
- Order Desk
How to Upgrade your eCommerce sales fulfillment with Folio3?
We specialize in creating and delivering unique Bigcommerce Integration that allow you to connect your BigCommerce store with all of your other business apps, allowing you to get the most out of your investment.
We use the BigCommerce platform’s capabilities to ensure that you can smoothly integrate your eCommerce store with any and all applications you need to connect to in order to improve your store’s productivity.
We can link your BigCommerce storefront with your business platforms such as ERP and CRM, as well as other platforms such as shipping carriers, payment gateways, eCommerce marketplaces, social media, and more.
Headless BigCommerce Development, which are backed by the back-end eCommerce platform, provide unrivaled outstanding consumer experiences. It features the most headless connectors and guarantees that you will never have to re-platform.
Folio3 achieves a balanced performance by delivering lightning-fast time to market, site performance, and personalized client experiences. With BigCommerce’s headless commerce market-leading commerce engine and Vercel’s Edge Network hosting, we leverage both static site generation and server-side rendering. Your storefront will be built at breakneck speed without sacrificing user experience.