Benefits of Ecommerce Inventory Management
Ecommerce inventory management software is a simple tool that helps businesses grow manifold.

Here’s why online sellers should use eCommerce inventory management software. To start with, are you an eCommerce seller? Do you have your own website or do you sell on e-commerce marketplaces like Amazon or Flipkart? Chances are high that you are doing both and maybe even having an offline store. Any online seller wants to grow his business and increase his revenues manifold.

However, with growth comes complexities. Growth means arranging for and storing large quantities of inventory. If you are currently managing your business on multiple channels using an excel sheet- there might be a lot going wrong in your business. Human errors, managing multiple eCommerce sites, inventory stock-outs, or leakages are just some of the issues. An eCommerce inventory management software can solve all this & more. First, let’s explore the inventory management challenges in online selling.

Challenges of eCommerce Inventory Management

1. Overstocking

Many eCommerce business owners are unable to estimate the correct amount of stock required. When there are multiple eCommerce sites involved and each has its own customer base, it becomes difficult. There might be a spike in sales due to positive economic sentiments or due to the festive season. Overseeing this, many sellers tend to stock up.


2. Growing Business v/s Excel Sheet Bases Manual Management

When you manually manage everything, it is very difficult to grow your business. This applies to manual inventory management too. In the initial period when you start your business, this may seem simple. However, to grow your business you need to expand. As you keep adding new channels, such as Flipkart, Amazon, Myntra, etc., it becomes tough. This is a key reason to use eCommerce inventory management software.


3. Overseeing Multiple Marketplace & Warehouses

Ecommerce Inventory Management Software
As you add more warehouses and marketplaces, the management of inventory becomes a challenge.

As your company grows, as an eCommerce seller; you need to oversee businesses across multiple marketplaces. Additionally, you will end up having at least two warehouses or sign up for fulfillment programs like Amazon FBA, where you need to send products to their warehouse. Now imagine how difficult it would be it is to control this. There will be several operational issues, payment leakages, returns to be managed, etc.  


4. Cutting Costs v/s Investing in Tools that Grow Your Business

Ecommerce sellers in India tend to cut costs as much as possible. This approach is about cutting costs to growing profits. It is a very conservative approach and may not take you far in life. However, a good businessman knows that to grow, you need to invest in tools that help you expand your business. The growing business adds to economies of scale, bringing down your fixed costs- eventually leading to improved profits.


5. Lack of Business Insights

Ecommerce Inventory Management Software
Business insights should be your focus instead of daily operations.

Business insights are required so that you can be sure you are steering your business in the right direction. Without an eCommerce inventory management software, eCommerce sellers end up spending most of their time on day to day on operational issues.


What is an E-Commerce Inventory Management Software?

An eCommerce inventory management software centralizes the inventory data of an eCommerce business. It allows an online seller to track inventory, right from purchase, and warehouse storage to eCommerce sales and returns.

Ecommerce Inventory Management Software
A simplified diagram to explain how eCommerce inventory management software works

What are the Benefits of Using an eCommerce inventory management software?

We hope the above article gave you a detailed insight into why eCommerce sellers should use inventory management software. There are multiple options available in India and the small addition of per order cost of approximately Rs.2 per order is worth the growth you will get in your business. The eCommerce industry in India is bound to only grow from here on. As an eCommerce seller, it’s best to automate as many tasks as possible so that you make the most of this growing industry.

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