Setting up an online business is an easy way to enter the entrepreneurship world. Create a website, sell products, and make money. It sounds simple, though mistakes are bound to happen – especially when stocking is involved!
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By “stocking”, we’re talking about the physical stock you sell to people. It’s the products you’re listing and shipping to customers – your inventory – and there are plenty of mistakes people make. As someone who might be starting their online business journey, we’ve decided to help you with some free guidance in this post. Check out the three inventory mistakes people often make, so you know to avoid them!
Understocking Their Business
Small business owners are so worried about overstocking it sets a trend towards understocking. Acquiring too much inventory can be a problem – but there are always ways to get rid of it. You can have flash sales, send items to influencers or reviews, etc.
Understocking is a bigger issue as you regularly run into concerns where customers want to buy something but it’s out-of-stock. Are they likely to wait around? No. They’ll find the same product (or similar) somewhere else, and you lose out on some money.
Many startups make this mistake as they don’t have enough storage space for their stock. They can’t rent a warehouse so are often left keeping items at home in the garage or attic. Avoid understocking by utilizing self-storage in the form of a pods container. Companies will supply you with a container that’s delivered to your home and can be filled with stock. Keep some in your house to handle orders, but you’ve got access to storage when you the orders ramp up. It’s a simple and cost-effective way of ensuring you always have enough inventory.
Relying On Dropshipping
Too many budding entrepreneurs think they can cut corners with dropshipping. This involves selling items on your website, then ordering them from other sites and getting them delivered to your customers. In theory, you save money on inventory costs as you don’t need to pay for storage.
In reality, dropshipping has many disadvantages – one of which is the lack of inventory control it affords a business. People are always caught out by items being out of stock, and it’s out of their control. You have no way of managing your inventory when you rely on dropshipping, so it’s good to avoid this business model.
Forgetting To Update Their Online Stock
Speaking of things being out of stock, another common small business mistake is neglecting to update online stock. This causes customers to purchase things and then get annoyed when you have to email them saying the product is unavailable.
This should never happen. It leads to negative customer experiences that can harm your reputation and cause a deluge of bad reviews. Implement an automated inventory management system so stock levels are constantly updated, and immediately display when items have sold out. It avoids any confusion and spares your blushes.
Don’t let these inventory mistakes get in the way of your business idea. Use self-storage to ensure you maintain ample stock levels and aren’t understocking. Shy away from dropshipping to give yourself more control over your inventory, and always be sure to update your site so customers don’t place orders for out of stock items!
