Inventory management for e-commerce

Updated 18 August 2021

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Inventory management is a process to ensure that the business has an optimum quantity of resources needed to run a business. If you are running an e-commerce store, it’s very important that you keep track of stock available in your inventory.

Inventory management makes sure that company has enough stock and that it does not suffer losing money in case of sale or due to overstocking.

Even the greatest retailer Amazon, uses barcode scanner and digitization to get greater visibility in asset disposition and shipping needs. Fulfillment by Amazon, allows user to send items to controlled location and where they pick the goods and takes care of the operational part

Purchase Planning


Inventory management helps the business owners to decide when to purchase the next stock of items so as to avoid understocking of items.

Some company might use the just-in-time method of planning so as to purchase product only when required in inventory and some might make the purchase based on available sales data collected over a period of time.

Significance of inventory management

Importance of Inventory-management

Inventory management is the key to growth for your e-commerce business. It not only helps business to stay organized but also acts as key assets in the company’s turnover.

Controlled Supply-demand of product: 

Inventory management makes the process of product replenishment and utilization easier.

Buffer stock: 

It ensures the availability of support stock in situations when the demand for the product increases abruptly.

Get repeated customers: 

You can get loyal customers who come every time for similar product repeatedly.

Geographical advantage: 

Inventory management always gets upper hand on geographical location, as the cost of labor, storage, and transportation of product cost varies from state to state.

Advantages for e-commerce retailers

With the bunch of platforms available for e-commerce store and their respective integration with inventory management system, the e-commerce retailers need not have to worry about managing inventory anymore.

Warehouse integration: 

The system provides integration with warehouses present at multiple geographical locations, thus allowing the company to scale and expand.

Integration with e-commerce store: 

If you are building your e-commerce store either on the hosted platform like Shopify or self-hosted platforms like Magento, chances are that inventory systems have integration with them which takes care of your inventory.

E-commerce Integration

Real-time updates: 

The system will automatically update on all office location regarding availability or unavailability of product in inventory.

Product synchronization: 

The system provides inventory synchronisation from multiple locations so that correct information is provided to the customers regarding the availability of the product

UVdesk Helpdesk is a cloud-based eCommerce help desk software which is built to caters the need of the clients with its incredible functionality. It has been built to solve the customer’s queries and deliver them the best solution.

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  • Alexpaul
    Great article on inventory management for the eCommerce store. This helped in clearing my doubts and understand better about the inventory management.
    • Himani Gupta (Moderator)
      Hello Alexpaul,
      Glad to know this article cleared your doubts!!
      Many thanks for reading and appreciation.
      Thank You!!