US Retailers Are Losing Billions. Don’t Join Them.
Business owners spend hours and hours trying to decide which products to reorder and which ones to hold off on. This is an important decision that retailers should be concerned with since 70% of shopping decisions are made in front of the shelf. (Nielsen)
On a similar thread, Radial reports that 81% of customers will leave your website to shop with a competitor if an item is backordered or out of stock. The National Retail Federation reports that [Tweet “U.S. retailers lost 45 billion due to low inventory.”] Out-of-Stock signs are no joke. At the same time, having too much stock is also risky. The same report also showed that [Tweet “U.S. retailers lost 224 billion due to excessive inventory.”]
Time is money and also needs to be considered. The greater the inventory, the more time retailers and their employees need to spend managing that inventory.
With these considerations, how is a retailer to know which items to keep in stock?
Rather than stabbing in the dark at which product to feature and which ones to send to the clearance section, let the numbers tell you. Use a POS that tracks your sales and reports to you on which items are popular and which ones you can hold off on restocking. Your POS should alert you when items have low inventory so you can order those items to avoid having them go out of stock. This will prevent you from having popular items go out of stock, thus preventing you from losing those sales. Additionally, your POS should keep you aware of items with excessive inventory so you can manage those items accordingly.
Having a POS that automatically runs the numbers for you, telling you sales by item, which inventory is low or in excess, and what your inventory value is will not only save you hours upon hours of time spent with a calculator, it will also help you make wise inventory management decisions.
Also published on Medium.