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Effective Ecommerce Inventory Management

An inventory management strategy can either make or break an e-commerce business. With more products being sold and distributed online, it is crucial to partner with a highly organized logistics management system to avoid future headaches and angry customers.


According to the Bureau of Labor Statistics, there has been an increase of over 1,600 new warehouses in the US (adding up to roughly 10.4% increase). Because instating an inventory management solution can be a lengthy process that will require continuous maintenance and observation, you will need to seamlessly identify your requirements before settling. 

Ecommerce Inventory Management

  • E-commerce inventory management is defined as, “the act of overseeing the volume, diversity, pricing, and location of a business’s available products”. These products are typically held in a 3PL (third-party logistics fulfillment center) like Expak Logistics, or at a company’s own warehouse. When you have implemented an effective inventory management solution, you will be able to monitor the goods leaving and being stocked within the warehouse. The ability to oversee the fluctuation of your stock will allow your company to gather various data on consumer demand and purchasing trends, giving your company the advantage over competitors who do not utilize a functional inventory management system.

What Are the Benefits of E-commerce Inventory Management?

  • Understanding the ebb and flow of your stock will provide your company an advantage over competitors who don’t collect data surrounding buying behavior and product lifecycle. The consumer analytics your company receives will help prevent future crises such as customers not obtaining their products in the anticipated time frame or selling your products at an impossible rate. Issues like these can establish poor brand image and sever the relationship between consumers and suppliers.
  • Not having enough stock in your warehouses can be a problem for most companies, but an influx of stock can cause the same financial difficulties to arise. In order to reduce your risk of wasted inventory or deadstock, you will need a systematic reporting system. Collecting this data will allow you to make educated decisions with repurchasing or even insights on when to start a promotional or liquidation process.
  • Consider implementing reorder capabilities for your customers through your e-commerce platform! Having a positive buying experience with a brand will oftentimes result in the consumer wanting to purchase the same products on a regular basis. An effective inventory management system will assist this procedure and grant the customer easy access to their order history.

E-commerce has given companies the ability to participate in multi-channel selling instead of one channel, giving modern brands the ability to sell through the internet, marketplaces such as Amazon, social media and brick and mortar. An inventory management system is the most successful way to match inventory data across all selling platforms in order to assure your business’s prosperity. We advise you find a 3PL or 4PL company like Expak Logistics to handle your logistics needs and retain the satisfaction of your customers.

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