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Inventory Techniques for the E-Commerce Sector

Ecommerce is a sector that is growing and expanding significantly, especially during the Covid-19 pandemic. With the ease and convenience it provides, online shopping has become the new norm for millions of consumers around the world. This article discusses several techniques that are essential in managing the e-commerce inventory, which includes but is not limited to, optimal economic order, restocking, techniques on inventory control, real time visibility and seasonality of businesses. With these techniques, inventories are easier to control as well as avoiding the possibility of overstocking or understocking. This will also help the company to satisfy the supply and demand of a competitive market.

The Reorder Point Formula

Market demand refers to the quantity demanded across the consumer’s market. Market demand can fluctuates over time and stocking strategies are required to handle ever changing demands from consumers. The fluctuation may be due to various factors such as season, natural disasters, predictable or even a pandemic. The importance of understanding and considering market demand for business is to lower the investment capital on products without demand and increase profit over consumer demand. Trending countries in specific cities, by searching potential products give an insight information over the distribution interest where focus of marketing effort over demand requirement before deciding to move towards. Many tools allow targeting of specific geographic locations and pulling of summarized analytics reports along with a combination of various data. By applying different functions tools works differently but gather various information when it comes to researching over market demand.

Utilising Real-Time Data

A precise inventory forecast is essential, especially when supply networks and consumer demand are continually changing. To be able to forecast correctly involves a combination of statistical and quantitative data analysis, company expertise, customer insights, and a little foresight to identify variables that may trigger a drop or spike in future demand.


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Vernice Ong Ming Hui, DLSM
Vernice Ong has substantive years of experiences in supply chain and business development, and specifically in the mechanical industry. She is a member of the Singapore Institute of Purchasing and Materials Management (SIPMM). Vernice completed the Diploma in Logistics and Supply Management (DLSM) on June 2021 at SIPMM Institute.
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