The Hidden Costs of Inventory Management

Imagine your ecommerce or home based business as a living organism, possibly even a human body. You’re the brains, of course, and the website and social networking tools you employ are the muscles. Your market presence is the organism’s ability to communicate, and its SEO web footprint is its place in its community. Following this little metaphor, the inventory of any mail order fulfillment ecommerce business company represents the life’s blood. Inventory moves, and stores, and provides your ecommerce business with both vitality and growth. Without inventory, your ecommerce or home based business dries up and withers away. But like the blood, your inventory needs nurturing and care, and it needs room to grow and room to circulate. Unfortunately, that care and concern can sometimes grow quite expensive, especially if the inventory and logistics management segments of your business stay neglected for any period of time.

Inventory Needs Precise Conditions

Even when dealing with packaged goods, for example collectibles such as movie memorabilia or other collectibles, proper climate control is absolutely essential to prevent mildew, dust, and grime from diminishing the product’s resale or collectible value. This can lead to intense dissatisfaction among collector client bases, who expect their items to arrive in mint condition.
In any event, getting the right climate controlled atmosphere for your inventory will protect its value and diminish the need for replacement. You’ll be able to minimize reorder costs while keeping the inventory you have ready to ship at a moment’s notice, thereby increasing efficiency.

Inventory Needs Replenishment

In a busy and thriving ecommerce enterprise, your inventory will need almost constant replenishment. Yet the logistics and resource management needed to successfully monitor all incoming and outgoing inventory traffic can prove daunting for the experienced logistics manager and outright impossible for the novice.
The resulting confusion and loss of time can mean lost profits, damaged inventory, and lack of successful conversions and repeat customer business. All those dangers are really “leeches” draining your business blood dry.

Inventory Needs Proper Management

Outsourcing your inventory management to a third party fulfillment provider will ease the burden of controlling your order fulfillment and inventory maintenance while at the same time maximizing your business’ growth and development. You’ll have more time to devote towards building your “front end,” meaning the potential for more growth overall will be that much more in reach. That, in turn, benefits the entire “body” of your business.