This is more important with perishable goods. Basically, itР В Р вЂ Р В РІР‚С™Р Р†РІР‚С›РЎС›s a way of ensuring people get the freshest inventory possible. FIFO (First In First Out):Р В РІР‚в„ўР вЂ™Р’В The first products to be received (either at your store or your warehouse) are the first to be sent out.In doing so, you donР В Р вЂ Р В РІР‚С™Р Р†РІР‚С›РЎС›t tie up your money in unsold inventory and you donР В Р вЂ Р В РІР‚С™Р Р†РІР‚С›РЎС›t normally have unsold product on the downside, you run the risk of being unable to keep up with a sudden increase in demand, thus being unable to fulfill all your orders and potentially losing customers. JIT (Just-In-Time) Inventory:Р В РІР‚в„ўР вЂ™Р’В A method of inventory management in which you order the product just in time to keep up with demand.Typically, if your inventory falls below this level, you want to order more to avoid running out. Minimum Viable Stock Levels:Р В РІР‚в„ўР вЂ™Р’В The minimum inventory quantity, or stock, you should keep on hand to keep up with consumer demand.Here are a few of the major terms (you may even be familiar with some of them):

This section will be a (very brief) introduction to the typical inventory management systems used by the big players in the world. Typical Big Box Retailer Inventory Management Systems

A step-by-step guide to implementing these systems.

The best systems for small- to mid-sized ecommerce stores.

Common obstacles to inventory management.

Typical big box retailer inventory management systems.

So within this guide, IР В Р вЂ Р В РІР‚С™Р Р†РІР‚С›РЎС›m hoping to teach you the following: The retailer I worked for did both-and yes, their failure to implement an inventory management system plan even hurt the dropshipping portion of their business.

Those who store their own inventory (either at home or in a warehouse).

Now, this guide is written for two kinds of people: With a little effort and some planning, you can develop such a system for your own store. Ouch.Р В РІР‚СњР В РІР‚С›ll they needed was a better system in place. In fact, I worked as the marketing director for a million-dollar-a-year retailer (sales, not profits), and they lost $100,000 of their profits in one year simply from poor inventory management. If you screw it up, it can cost you a lot of money. Inventory management is often the biggest headache of any ecommerce store.

Online inventory for small business