Selling goods online shares many principles with similar operations which have physical storefronts, such as the need to effectively convey the benefits of a product to all potential clients, and to make them look inviting, or, if this isn't possible or practicable, show that at least they will meet their requirements.
But there is much more to setting up and operating an effective online selling website than simply the 'build it and they will come' principle.
Effective monitoring essential
Once a store has been launched online, one of the most essential requirements is that an effective system is in place for monitoring stock levels and managing the process of purchasing further stock. This central operation is vital to how successful the enterprise will be in managing its cash flow as well as its physical stock levels. And in many cases in the past, this fundamental aspect of running a business has become its downfall, when a manager or owner either buys too much stock in the hope of being able to sell it, or does not buy enough, and is subsequently caught out by the level of demand, leaving lots of people to have to go away and find what they are looking for elsewhere.
Four vital principles govern the way in which any business should manage its inventory:
● Stock should not just be stored, but should be carefully organised
● A business should start out with only the amount of space it needs, expanding into larger premises as and when necessary
● If it is dealing with products which have a high turnover, it should consider outsourcing the function of managing and dispatching its stock, and
● If at all possible, keep the bare minimum inventory, and try to balance goods you order with those you sell. This is the 'just in time' principle which is one of the reasons why our supermarket chains have been able to grow so large, and operate such big stores effectively.
Human inventory checks
A small number of lucky companies can operate without having any physical stock at all – such as companies which sell digital downloads – and this means they are much more easily scaleable than others which have to consider where and how to store their stock.
But for many others which handle physical goods, their distribution function plays a vital part in their fortunes. So while a high level of computerisation and automation can be built into its warehousing and stock management functions, some human intervention is needed. So there will always be a strong demand for people with the requisite skills to handle stock management and logistics functions for a company if it is to grow successfully yet still be able to remain capable of maintaining the momentum of that success.
Whether dealing with the automated or manual parts of the stock management process, however, this is a vital consideration for any business, which has the power to make the difference between it becoming a big success, simply earning a living for its owners, or falling by the wayside, as so many do.
About the Author:
Christina Jones is a freelance web developer and technology writer who is always on the lookout for best ecommerce website examples on the web. Christina likes nothing more than a well-designed, user friendly site.
But there is much more to setting up and operating an effective online selling website than simply the 'build it and they will come' principle.
Effective monitoring essential
Once a store has been launched online, one of the most essential requirements is that an effective system is in place for monitoring stock levels and managing the process of purchasing further stock. This central operation is vital to how successful the enterprise will be in managing its cash flow as well as its physical stock levels. And in many cases in the past, this fundamental aspect of running a business has become its downfall, when a manager or owner either buys too much stock in the hope of being able to sell it, or does not buy enough, and is subsequently caught out by the level of demand, leaving lots of people to have to go away and find what they are looking for elsewhere.
Four vital principles govern the way in which any business should manage its inventory:
● Stock should not just be stored, but should be carefully organised
● A business should start out with only the amount of space it needs, expanding into larger premises as and when necessary
● If it is dealing with products which have a high turnover, it should consider outsourcing the function of managing and dispatching its stock, and
● If at all possible, keep the bare minimum inventory, and try to balance goods you order with those you sell. This is the 'just in time' principle which is one of the reasons why our supermarket chains have been able to grow so large, and operate such big stores effectively.
Human inventory checks
A small number of lucky companies can operate without having any physical stock at all – such as companies which sell digital downloads – and this means they are much more easily scaleable than others which have to consider where and how to store their stock.
But for many others which handle physical goods, their distribution function plays a vital part in their fortunes. So while a high level of computerisation and automation can be built into its warehousing and stock management functions, some human intervention is needed. So there will always be a strong demand for people with the requisite skills to handle stock management and logistics functions for a company if it is to grow successfully yet still be able to remain capable of maintaining the momentum of that success.
Whether dealing with the automated or manual parts of the stock management process, however, this is a vital consideration for any business, which has the power to make the difference between it becoming a big success, simply earning a living for its owners, or falling by the wayside, as so many do.
About the Author:
Christina Jones is a freelance web developer and technology writer who is always on the lookout for best ecommerce website examples on the web. Christina likes nothing more than a well-designed, user friendly site.
1 comment:
too much stock is bad, so does with low stock. Knowing the basic analysis for our stock turnover is a must for retail store owner (whether online or offline)
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