Inventory management is an important component of running an online business, however it may be one of the most challenging and technical areas of the job to learn.

The straightforward procedure for monitoring goods purchased and offered is complicated by costs, overhead, rate of purchase or turnover, price of purchase, along with other details that may be hard to manage as the internet sales grow.

However, you’ll need accurate inventory management to keep the profitability of the store, as inventory transporting costs can represent around 25% of the inventory value.

Additionally, poor management, which leads to sold-out occasions and overstocking, could be pricey.

Overstocking means you can get stuck having to pay for storage and management for products you will never sell, while selling out loses customers, can slow shipping time, and lower client satisfaction.

This is particularly relevant for Amazon . com sellers, whose listings and Amazon . com Search engine optimization will plummet if your method is sold-out.

Maintaining a precise inventory count enables you to definitely manage reorders, keep sufficient inventory available to satisfy demand, and lower costs by understanding profits and losses.

While there are many aspects of your inventory that will need care, you can begin by making certain that the physical inventory counts are accurate, to ensure that all of your information is correct too.

How you can Physically Organize Your Inventory


The initial step to accurate inventory counts is just organizing your inventory. While really small ecommerce stores frequently skip this task, it might be increasingly more crucial as the inventory grows.

Organization enables you to understand you’ve, the way you are monitoring it, and obtain a better knowledge of your computer data when you execute a count.

The very first component of organizing your inventory should more often than not be physical organization.

  1. Label bins
  2. Produce a structured order
  3. Integrate a listing movement system for example “first in, last out” or “last in first out.”

This will allow you to trace where products have been in your warehouse and take care of counts more rapidly.

Great organization necessitates an excellent inventory control system made up of detailed labelling and naming.

Inventory Labeling

Using physical labels provides you with the chance to enhance the precision of the inventory count using technology like bar code scanners. Even though you manufacture all of your products yourself, you ought to have an actual labelling system that suits your digital inventory count.

Your label will include:

  • SKU (Stock-Keeping-Unit)
  • Measurements
  • Location, if relevant

Inventory Naming

You’ll need quality, organized inventory names to trace and manage your inventory and stock levels. Generally, what this means is using or creating SKU figures to trace your internal inventory while adopting and taking advantage of other technology for efficiency and retail purchase.

Additionally you need actual product names, which needs to be descriptive according to product type, size, color, etc.

We’re all enticed to produce product names which are semantic, but good inventory  management means creating titles which are searchable.

  • Semantic: Blue Chuck Taylor Converse Footwear
  • Searchable: Converse, Chuck Taylor, Blue, Size 8.5

Why? If you are attempting to carry out a manual update and you’re using “Blue Converse Footwear,” your footwear could be located under “Blue” and never under “Converse.”

By developing a non-semantic naming system, you are able to classify the key to the merchandise first. Additionally, it makes performing inventory counts simpler, since you can easier see exactly what a method is.


A SKU may be the tiniest saleable unit associated with a inventory (for instance a pack of paper cups or perhaps a vacuum) and enables you to definitely track internal goods and quantities. Should you not have your personal SKUs, create them today and begin with them for inventory tracking.

A great SKU is descriptive from the product, between 4 and 14 figures lengthy, doesn’t contain special symbols, and it is unique.

For instance, utilizing a simple first letter and product number system, you can create SKUs like:

  • Treat – SKU: CB001
  • Treat, vanilla – SKU: CB001-01
  • Treat, hazelnut – SKU: CB001-02
  • Toffee – SKU: T002
  • Toffee, Caramel – SKU: T002-01

This kind of system enables you to definitely nicely organize everything in your body in alphanumeric order. This increases the precision of the counts by making certain that you could clearly see what the items is, and just what variation.

However, should you start an SKU off like 0001ABC you’d don’t have any strategy for finding the SKU having a sort function, and also you can’t tell what it’s instantly.

SKUs permit you to update the amount of physical units available for you for purchase, and organize everything to your own system which makes sense for the company.

Additionally they allow it to be simple to handle physical organization using either alphabetical or statistical organization. For instance, if you are using a method that values each SKU according to if this was put into the body (First: 0001, Last, 12987, it is simple to structure and organize your whole warehouse.

In case your warehouse is big enough, and also you manage all of your inventory from one location, you may also add place to your SKUs. However, this isn’t suggested if you are using Amazon . com FBA, another-party logistics company, or some different of exterior fulfilment.

How you can Create SKUs in BigCommerce

You will find multiple methods to create SKUs within the BigCommerce platform. There’s two primary options:

  • Import products and SKUs from your stand out file
  • Create custom SKUs on the per product basis

For individuals attempting to create custom SKUs on the per product basis, you’ve got a couple of options. Each product within BigCommerce might have greater than 500 variants or options. What this means is 500 various SKUs for any single product type. Obviously, you may also possess a single product without any options, too.

This is how you place that up.

Navigate for your products page within the BigCommerce platform. Click “Add.”


Now, in which you include your SKU is determined by for those who have just one variant or choice for your products, or multiple.


For those who have multiple options or variants for every product, you’ve two options in adding SKUs.





Units of Measure

You can include units of measure to your SKUs or product labelling system to trace the amount of a item you’ve, which makes it simple to perform counts.

By making certain you have approved units of measure, you may create a method that enables you to definitely track SKU volume utilizing a easy and efficient method.

Common measurements include:

  • Unit
  • Each
  • Pound
  • Gram
  • Crate
  • Box
  • 24 Count
  • 12 Count

By creating which units of measure you utilize and creating standardized abbreviations on their behalf (for instance ea. rather of EA, Ea, EA(s)), you are able to organize your count process because guess what happens each quantity means.

UPC / EAN Bar code


Any retail item requires a UPC or Universal Product Code. If you buy mass-market products rather of producing your personal, they ought to instantly feature both a UPC and EAN Bar code.

UPC and EAN are nearly always in combination with one another, and may be used to introduce technology like bar code checking to hurry up inventory counts.  If you manufacture your personal product, you’ll have to purchase UPC and EAN codes for their services.

UPC is efficacious since it describes a particular unit although not always the tiniest unit of purchase. So, a UPC may include a box of 24 individual units, enabling you to scan inside a crate or perhaps a box instead of getting to scan individual products. This could accelerate inventory count a good deal when managing bulk purchases.


If you sell books, magazines, journals, or music, make use of ISSN, ISBN, or ISMN (Worldwide Standard Serial Number, Worldwide Standard Book Number, and Worldwide Standard Music Number). These figures function nearly as good as UPC/EAN but they are assigned through the writer utilizing a unique writer code.

Amazon . com ASIN

Let’s say you sell on Amazon . com, you have to use Amazon . com’s ASIN (Amazon . com Standard Identification Number), but technology-not only together with your personal SKU.

Generally, the very best inventory naming policy would be to integrate the main universal number (ISBN, UPC, etc.) with your personal internal SKU system. Mixing scalping strategies enables you to employ electronic tracking to simply scan barcodes during counts to enhance precision, while using the your personal system for organization and check. This provides you maximum control of the body, while allowing which are more efficient electronic counts.

How you can Ensure Precision

Increasing the precision of the physical inventory count means taking control of the inventory process to be able to control how and when products are counted.

The initial step ought to be to track moving inventory, so you are aware where every item inside your inventory reaches all occasions.

For instance, many inventory systems add inventory on the road in the manufacturer but neglect to note the position of the inventory, which could cause inaccurate inventory counts.

Integrating location labeling and making certain that the inventory management system integrates together with your supplier or manufacturer will solve this issue.

You may also integrate bar code checking to scan every item interior and exterior your warehouse to trace outgoing and incoming inventory, and instantly move it to a different location.

Cycle Counting

You’ll need regular physical counts to guarantee the precision of the digital inventory. The greater secluded your warehouse and also the less employees you’ve, the less necessary this becomes, however, you should physically count all of your stock at least one time each year regardless of what.

Stock is frequently lost, damaged, broken, or misrepresented inside your inventory system. An actual count provides you with a much better concept of that which you have, to be able to improve your system to complement.

  • Use item count for big products. UPC and EAN bar code checking accelerates this method and reduces human error.
  • Use rough calculations for products which are they canrrrt warrant item counting. Use weight or volume measurements to calculate rough estimates of the number of small products (like plastic bags or packages of small toys) you’ve so that you can save costs.
  • Use valuation you prioritized your best selling inventory. Track profits so you understand which products cause you to as much as possible, and prioritize them inside your count. Let’s say you sell 100+ of 1 item and under 5 of some other monthly, it’s more essential to count the 100+ item multiple occasions each year.
  • Consider finishing a cycle count of top-selling stock at least one time per quarter.
  • Consider creating stock sheets and getting receivers counter sign them for precision and auditing purposes for those who have a sizable warehouse.

Inventory auditing

Human error is among the primary reasons for inventory count issues. Because of this, a powerful inventory audit process should participate your inventory count. By auditing your count included in the process, you are able to strategically check every count in your process.

  • Make use of a control officer to start checking inventory counts against expected figures when the count begins. Should you hold back until the count has ended, you’ll need to perform a recount to audit.
  • Be sure that the count is conducted by someone acquainted with these products. Should you’re counting boxes, it’s simpler to count knowing what is incorporated in the box and the number of.
  • Create a structured count process. Begin with best selling products, count from a to z, or count according to location, but make use of a process to make sure that things are counted.
  • The auditor should inspect the inventory throughout the count.
  • The auditor should take notice of the stock counting procedure to make certain that it’s sufficient.

Steps to make Everything A Lot Simpler

The simplest way to enhance your inventory counts would be to help make your system simple to use. If you take steps to produce better organization, reduce stock, and define regions of importance, you may make cycle counts faster and much more accurate.

Lower Your Stock

Although it’s wrong for each ecommerce store, stock reduction utilizing a JIT (Just over time) or any other inventory management system can help reduce the level of stock you need to count. This can improve precision, since you will have less products to count.

JIT inventory management depends on focusing on how much you sell so when, to be able to stock sufficient to buy again Just over time to avoid a regular out.

Inventory Locations

Clearly defining inventory locations in your product is essential to inventory precision. Even though many leave this from their inventory management system, a precise location enables you to definitely easily find out if the stock ought to be at the warehouse, on the road, having a third-party logistics company, or perhaps in manufacturing, to be able to take into account it also whether it isn’t inside your warehouse.


Automate alerts or re-orders when stock reaches certain levels to prevent overstocking. This can help you save cash on storage, but probably lessen the burden on cycle counts by making certain that you simply not have an excessive amount of a product.

Mix-Funnel Inventory

While a dependable number uses physical count, you might also need to be aware what your own personal inventory ought to be.

Should you’re selling through multiple sales channels like Amazon . com and eBay as well as your website, you’ll need mix-funnel inventory management to prevent mistakes. A mix-funnel inventory management system will help you to sync your inventory instantly, so you are aware profits and total inventory across all channels.

Consolidating your multi-funnel inventory makes physical counts simpler, provides you with more experience with regards to planning, helping prevent problems.

Establish Standards

Creating an interior policy of organization and counting can help to actually keep an eye on your stock within the lengthy-term. Using EAN barcodes to scan products interior and exterior warehouses, making certain that deliveries and delivery counts are verified by hand, and taking advantage of an auditing system to avoid loss or thievery can greatly enhance your internal organization.

Great inventory management will lower your costs by allowing you to avoid overstocking or selling out, and enhance customer support by providing faster fulfilment. Produce a brand policy of standard inventory cycle counts, develop strong internal organization, and employ the best technology.

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