Poor inventory management is a primary reason e-commerce startups fail. Having too much inventory ties up your startup capital in unsold stock, while having too little inventory leads to stockouts, lost sales, and disappointed customers. Here is how to keep your inventory balanced.
1. Setup Real-Time Inventory Tracking
Never rely on spreadsheets. Use Vendora's built-in inventory tracking system to automatically adjust stock levels when an order is placed. Setup low-stock notifications so you know exactly when to order more items from your suppliers.
2. Understand the Lead Time
Lead time is the number of days it takes for your supplier to deliver inventory to your warehouse after you place an order. If your supplier takes 5 days to deliver, you must reorder when you still have at least 5 days of inventory left to prevent running out of stock.
3. Plan for Peak E-Commerce Seasons
Shopping spikes dramatically in Pakistan during Eid, Independence Day (14th August), wedding season (November to February), and Blessed Friday (November). Order your stock at least 4-6 weeks in advance to avoid supplier shipping delays during these peak seasons.
FAQ: Inventory Management
(Average Daily Unit Sales x Lead Time in Days) + Safety Stock. Order more inventory as soon as stock reaches this number.
