Quality of inventory management in eBay and Amazon is a decisive factor when it comes to determining growth and revenues in the part of sellers performing in these top marketplaces. Till date, sellers, especially midsized to large entities have come face to face with the fact that the process cries out for a lot of time, patience, meticulous involvement and most importantly, costs.
At present, there are 2 main factors that influence eBay Amazon inventory management costs significantly. They can be named as (i) warehouse expenses and (ii) integration solutions that are applied to simplify and add more applicable and relevant features to the process. More often than not, mismanagement of costs in each of these avenues leads to serious revenue drainage that could otherwise have converted to tangible profits.
Order completion / fulfillment also claim a lot of expenses, but they are a different story altogether and thus, needs to be addressed differently as well.
Addressing warehouse costs…
As far as addressing warehouse costs is concerned, it always benefits sellers to engage only as many warehouses as they require. Warehouse costs are thoroughly influenced by the square footage of floor area that the inventory occupies on a specific period of time which could be monthly, quarterly, half yearly etc. Therefore, acts like holding on to loss-making inventory for way too long, over stuffing warehouse space etc or losing track of items that may have not moved for months can result in increasing costs unnecessarily.
The solution lies in active demand prediction and engaging warehouses on the basis of the locations that you cater to. If you do choose to expand your scope of delivery, choosing FBA and fulfillment solutions as such can be a good idea. Integrating with warehouses seamlessly should never be ignored as well.
Addressing Integration costs…
End to end integration that is seamless and feature packed at the same time, can help sellers stay in tune with critical cost influencing details like the inflow and outflow of stock, reports on stock that has not moved for a specific period of time and more. However, integrations of the highest quality usually come at high costs especially when multichannel efforts like Magento Walmart Amazon eBay etc. are involved.
Beating the cost issue in integration requirements is very necessary because inventory management in these top marketplaces without their support can be literally insane. The solution usually lies with approaching quality e commerce solution developers that can offer suitable solutions within your budget limit. Most of these solutions are buildable and sellers can thus, add features to the system as they grow over the years.