Without a doubt, retail is hot in the United States. According to recent statistics, Americans will spend approximately $182.6k online and $1.8 million offline – in just 20 seconds. People want to buy things, and the sooner they receive their purchase(s), the better.
Although they may want instant gratification when it comes to making purchases, many Americans are buying what they want online. People don’t mind waiting, but not for too long. Plus, they expect to receive exactly what they order.
Unfortunately, inventory management issues can and do wreak havoc on the overall online shopping process. Rather than scaring shoppers away, however, they are more likely to feel frustrated or angry. And where do irate customers often go to vent? Your website or social media platforms, of course.
These are the top customer complaints, each of which correlates with challenges in inventory management:
- Receiving the wrong item
- Not being able to order
- Shipping delays
- Being put on a waiting list
- Receiving broken items
Five of the largest problems in inventory management – which are associated with the top customer complaints – include the following:
- Mispicks: Picking the wrong item that looks similar to the correct item
- Overstocking: Purchasing/forecasting that’s not backed by good data that a warehouse management system can provide
- Understocking: Inaccurate forecasting of product demand
- Inventory tracking mistakes: Using outdated methods to manage inventory
- Improper warehouse training: Having all warehouse staff trying to understand the entire system; rushing through training to get orders filled more quickly
Infographic design agency, NowSourcing, along with SkuVault Warehouse Management System, which is a state-of-the-art web-based inventory and warehouse management solution provider, created the infographic, “Where’s My Package?” This infographic details the issues many Ecommerce providers face with delivering online purchases.
One primary way for retailers to identify and track its inventory, or stock, is by using what’s known as a Stock Keeping Unit (SKU). Shopify, which is a popular eCommerce software and online store builder, further defines the SKU as “a unique code consisting of letters and numbers that identify characteristics about each product, such as manufacturer, brand, style, color, and size.”
A reliable inventory/warehouse management system, which uses SKU along with other inventory and tracking measurements, resolves or completely prevents the issues mentioned above. And what this means for you and your business is more satisfied customers and repeat business. Maintaining inventory and meeting customer demand is critical for keeping up with buying trends and keeping customers satisfied.
Find out more in the infographic below how the right inventory management system helps your Ecommerce business by ensuring your customers get what they want when they want it:
This post originally appeared in DashBurst Magazine and is being republished with permission
Read more: 5 Steps to Get Control of Your Inventory Management
Inventory management issues such as inventory shortages, excess inventory and dead stock can easily be resolved through integration of an ERP software. ERP software helps in consolidating and automating the supply chain process, while at the same time it provides the firm with operational insights in order to manage the inventory more effectively.