Can you afford to lose customers because products are out of stock?
Every time a customer can’t buy what they want, you risk losing them to competitors.
In fact, 41% of UK consumers would stop shopping with a retailer after experiencing multiple stockouts (PwC UK, 2023).Stockouts also cost UK retailers a staggering £15 billion annually (IHL Group, 2022), highlighting the severe financial impact they can have.
So, how can you keep your online store stocked without overloading on inventory?
Here are Some Practical Strategies to Help you Avoid Stockouts and Keep your Customers Happy
Set Minimum Stock Levels
To prevent running out of products, set minimum stock level thresholds for each item. This means you’ll get a reminder to reorder before stocks get too low. By adopting real-time inventory management systems, UK retailers can reduce stockout rates by 30% (KPMG UK, 2023).
Use Sales Data
Look at past sales to decide when to reorder. This helps you keep enough stock without overbuying.
McKinsey UK (2022) found that UK retailers who use data-driven forecasting and analytics can improve stock replenishment accuracy by 25%, significantly reducing stockouts during peak seasons.
Adjust Regularly
Update your reorder points based on seasons, promotions or changes in demand.
Keep Inventory Lean
Running a lean inventory involves maintaining just enough stock to meet demand without excess, reducing storage costs and minimising the risk of unsold products.
McKinsey UK (2022) found that businesses using lean inventory management practices can reduce stock related costs by 15-30%, while still ensuring they meet customer demand and avoid stockouts.
Focus on Best Sellers
Stock more of your popular items and less of slow moving products. This saves storage costs and frees up cash. It’s crucial to keep high-demand items in stock, as 29% of UK consumers will switch brands or retailers after experiencing a stockout (McKinsey UK, 2021).
Automate Ordering and Restocking
Automating your inventory management processes can simplify operations and reduce errors. By automating tasks like purchase orders and stock transfers, you gain real-time visibility of your stock across all channels and locations
Transfer Stock Between Locations
If you have multiple warehouses or stores, move stock where it’s needed most. This helps prevent stockouts in one place without increasing overall inventory.
Have Great Relationships with Suppliers
Good relationships with suppliers can help you avoid delays and shortages. By staying in regular communication, you can be aware of any issues that might affect your stock levels. Negotiating flexible agreements allows for changes in order sizes or delivery times, helping you respond quickly to shifts in demand.
PwC UK (2022) reports that strong supplier relationships help UK retailers reduce lead times by 20%, allowing faster stock replenishment and fewer stockouts.
Cloud-Based Systems
Use online inventory systems that you can access anywhere, including on mobile devices. This allows you and your team to monitor stock levels, orders and finances all in one place, even while on the go. Quick access to data helps you make faster decisions.
According to Deloitte UK (2022), businesses implementing cloud-based inventory systems have seen a 20% increase in inventory accuracy, providing a significant advantage in maintaining optimal stock levels and reducing stockouts.
Keep Improving with Data
Always look for ways to improve your inventory management by tracking key metrics and conducting regular checks. Monitor how fast stock sells, how quickly orders are filled and how often stockouts happen. Regular inventory audits ensure your records match actual stock levels, helping you spot issues early and make necessary adjustments.
Avoiding stockouts is crucial for keeping your eCommerce business running smoothly. By setting minimum stock levels, keeping inventory lean, automating processes and building strong supplier relationships, you can keep your customers satisfied.
But to put these strategies into action effectively, you need the right tools. That’s where Stok.ly Cloud ERP comes in. Stok.ly offers a solution for multi-channel eCommerce, warehouse management, order processing, finance and reporting. With Stok.ly Cloud ERP, you can manage your inventory better, ensuring you always have the right products in stock at the right time and the right place.
Don’t let stockouts steal your success – Scale your business now with Stok.ly Cloud ERP!