• clock-logo4 min read
  • January 3, 2019

Inventory and stock management are one of the biggest challenges faced by enterprise eCommerce businesses in Malaysia today. This largely happens due to overselling, with inventories distributed across locations and the stock management being done manually by teams spread across locations. Overselling occurs when a business sells products on online sales channels and receives order for a product that is actually unavailable in the inventory. The happens when the stock is erroneously updated on the online marketplace, without keeping a tab on the physical inventory in real-time. Overselling can be quite a challenge for organizations that have multiple online and offline sales channels.

Overselling can lead to cancellation of orders and disappointed customers who try to buy from different channels, resulting in negative reviews and ratings. In a mature market such as Malaysia, bad reviews and ratings can wreak havoc on the brands image. Moreover, frequent overselling on multiple marketplaces may lead to account suspension.
To avoid overselling, your organization must have a proper order & selling management system in place. Here’s how you can strategize inventory management and prevent overselling.

1. Upgrade your operations with a Multichannel eCommerce Management System

Technology is growing without any leaps and bounds and you wouldn’t want to stay a tailender by avoiding its implementation while your competitors secure a position of best interest for the customers.

A multichannel eCommerce management system is a software that allows you to manage selling across multiple channels while synchronizing the stock level in real-time simultaneously. Multichannel Inventory System enables to:

  • Keep your stock updated in real-time across multiple channels
  • Facilitate 100% error-free inventory operations
  • Let you process multichannel eCommerce orders directly from your warehouse
  • Predict next seasons demands and help you fulfill every demand

2. Enable your warehouse for eCommerce operations

To avoid overselling, you need to master the art of managing your warehouse operations. The best way is to get an eCommerce Warehouse Management System to streamline all warehouse processes and workflows. Having an eWMS system automatically includes an order, inventory & selling management tool amongst other things. Such a platform keeps you updated so that you are never out of stock and list your products accordingly across the multiple channels you sell from. Furthermore, it will help you to avoid overselling and hence never miss a chance to fulfill your customer demands.

However, if you outsource your inventory management, optimize the use of well-equipped fulfillment centers. Take help from professionals, lower down the dissatisfaction in customers and see your business grow.

3. Use the FIFO Method

First-in, first out or FIFO is the oldest concept of inventory management. It simply means that you sell out your stock according to the age of the inventory. Sell the oldest product form your inventory before selling out the newer ones. This will highly impact on your plan to avoid overselling.

The FIFO method saves considerable money and has a lot of other benefits you can reap from like managing the expense accounts. The perishable goods (concentrated fruit juice, glass items, etc.) gets to sell out before getting expired or damaged. Additionally, products that turn obsolete (electronic items, mobile phones, etc.) are no longer suitable to sell because of reasons like change in fashion, packaging, offers and better substitute available.

Planning to outsource the inventory management might be beneficial because these days fulfillment centers take practicing the FIFO method into great consideration.

So, to sum up, a technology platform can help you to avoid overselling through a centralized auto-sync inventory that gets updated in real-time.

Keeping your customers happy is the prime objective to increase sales. And with software that helps you automate the synchronization of stock across multiple channels you, overselling shouldn’t be the reason of obstruction to your business’s growth.

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