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Importance of Inventory Management in E-Commerce

E-commerce has taken the world by storm and is definitely here to stay. With the development of technology, it’s only natural for more ways to be available for people to reach a certain business. Warehouses aren’t only there for the sake of warehousing anymore. Any business that wants to survive in today’s market needs them for proper inventory management. Without managing your inventory, you’re falling behind on your orders, and you’re practically losing business. Thus, now more than ever, it’s important to get to know the process of inventory management and master it. Your business depends on it.

1. Increased satisfaction

No matter how much the world seems to advance in all areas of business, one thing remains most important: customer satisfaction. Even though your customers won’t directly see how well-organized you are, they’ll feel it by the way they are serviced. If fulfilling the order takes too long or their items are misplaced, or any other kind of mistakes happen, they’re not likely to order from you again.

On the other hand, if you’re fast, accurate, and professional, you can count on better feedback and increased satisfaction. This can only be achieved through inventory management. Once you have full control over your workplace, you know exactly what’s going on in each of its spheres.

This means that nothing will pass by you and hinder the quality of your business. Increased satisfaction will be visible by the number of positive reviews you get online but also by the amount of new business that you get. Make sure to give your customers a voice with a feedback and review option, so that both you and other potential customers can see how well you’re doing.

2. Staying accurate

It’s very hard to keep track of many individual orders. You will be getting a lot of them, as e-commerce has made it extremely easy for people to obtain the goods they need and want. That being said, proper inventory management is key to staying on track and staying accurate.

When you don’t know where your head is and need a thousand orders to fulfil, you’ll want to have an organized warehouse with everything in its rightful place. This minimizes the risk for mistakes and makes you seem more professional. As well as that, people start to trust you more, and thus you gain more and more customers.

As well as that, you’ll never have to deal with the risk of an item being out of stock. It’s often the case that companies send orders to warehouses, only for the items to not be available. This makes you seem very unprofessional and disorganized. If you manage your equipment properly, you’ll always know how many items of what is in stock. There will be no room or chance for mistakes.

3. Having proper equipment

Having proper equipment doesn’t mean just working with state of the art tools. It also means having equipment for every part of the inventory management system. You’ll need high-quality materials handling equipment for each part of the process: picking, sorting, transporting, and of course, expansion.

It will be much easier to store your inventory, pick through it, and organize it when you’ve got what to do it with. Bridging gaps between the warehouse and the road outside is a job for transportation equipment, as is making sure orders go from point A to point B unharmed.

As far as expanding is concerned, you’re going to need to plan in advance. You may have enough room to store your inventory in an organized manner now, but soon you’ll be running out of space. Before, most orders were in bulk so people didn’t really have to worry about expanding storage. Today, though, with the introduction of e-commerce, you’ll be getting an influx of individual orders you’ll need to take care of.

That being said, you’ll need to invest in equipment that will allow you to create more space in your existing warehouse. This way, you’ll still be on top of the organization and your orders, regardless of how many new ones you receive. It’s easy to get lost in the chaos of e-commerce when you don’t take care to expand your space as the business grows.

4. Staying safe

Handling equipment is demanding physical work, regardless of how easy it may seem. This means that proper maintenance and management can be the difference between work injuries and getting the job done right. The only way to ensure your employees stay safe throughout the day is to take all the necessary safety measures.

The first thing on the list will be ensuring that your warehouse is well-maintained. This means it needs to be cleaned and organized. It’s very easy to trip on something when you’re carrying something else. As well as that, you’ll need to make sure your employees understand the importance of safe behaviour.

They need to be trained to handle the work, but they also need to be aware of the dangers of irresponsible behaviour. Machines should be used only for their intended purposes, not for goofing around. Five-man jobs can never be done with only two men, and so on. By rewarding safe behaviour, you’ll be seeing a lot more of it.

Also, make sure that your employees trust you enough to tell you when they need retraining. Refining skills will be necessary as the e-commerce world grows, and this is nothing to be ashamed of. When it’s time, you’ll just retrain your employees and continue growing your business.


As you can see, running a warehouse in the e-commerce world isn’t as simple as it seems. There are a lot of things to take care of and a lot of factors to pay attention to. If you don’t learn how to manage your inventory properly, it’s surely going to take a toll on your business. Customers today expect professionalism, fast service, and availability. To be an expert in the e-commerce world and take it by storm, you’ll need to meet various demands. It all starts with your inventory.

Written By

Australian based blogger with an extensive portfolio specialized in Manufacturing and Logistics. He can usually be found with an espresso in one hand and a book in the other. When not working, he's spending time with his family and friends or putting pen to paper for his own personal pursuits.

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