It is great to see entrepreneurship covering the whole country. That’s one of the things about the US that is envied by many countries in the world. It is a trend for retail entrepreneurs to sell their products online as merchants. All these shopping venues such as Amazon, Ebay, Walmart, Shopify, Magento offer great opportunities on their own anyway by drawing enormous traffic and providing access to millions of online consumers. It is never enough for a small and medium business entrepreneur. Why not access to more consumers? That’s how a startup grows.
Challenges of Multi-channel Inventory
Although it brings growth, there are some challenges that the online sellers should overcome. You might end up overselling a product when you sell in multiple selling channels such as Amazon, Ebay, Walmart, Shopify, Magento. Say that you have “Product A” inventory of 10 in your warehouse. You pushed 10 inventory figure to all selling channels. So all your stores in Amazon, Ebay, Walmart, Shopify, Magento show 10 available products to consumers. And you sold 3 product A in 1 hour on Amazon. You have 7 available items in your warehouse remaining after allocating 3 to captured Amazon orders. You should make your available inventory 7 in all your stores on Amazon, Ebay, Walmart, Shopify, Magento. Else, you might sell 10 more items on the rest of the selling channels in the rest of the day, leaving you with 3 oversold items. This case is going to destroy your customer service level and cause bad reviews and ratings.
Missing sales opportunities is also as painful as overselling. You might have products received into your warehouse or have cancelled orders or have items that can be dropshipped from your supplier’s warehouse during the day. You need to add these into your inventory on all your stores in Amazon, Ebay, Walmart, Shopify, Magento.
By using a proper inventory management software, you can build API connection to all your sales channels and update your inventory in real-time. Please take a look at Logiwa solutions to sort out the challenges in multi-channel selling.
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