Inventory Management Software can help prevent shrinkage. This post features four best practices that you may want to implement to keep money in your pocket.

Part of
inventory management for an ecommerce business is preventing shrinkage. While
we often think of shrinkage as something that only bricks and mortar stores
need to worry about, shrinkage occurs in almost any retailing business
regardless of whether it’s completely online, traditional retail, or a
combination of both.

The causes
of shrinkage may differ, but the resulting lost dollars in missing items can
negatively impact your bottom line. Traditional retailers must deal with
customer shoplifting and employee theft; -ecommerce businesses need better
inventory management practices. Preventing shrinkage is an important aspect of
both financial management and business management.

Preventing e-Commerce Shrinkage

Because
customers never directly interact with your inventory, they aren’t the cause of
e-commerce shrinkage. Instead, gaps in your inventory management process often
provide the opportunities in which shrinkage occurs.

To prevent
e-commerce shrinkage, consider implementing the following best practices in
your inventory management system:

1. Take inventory frequently: The faster you notice a problem, the faster you can correct
it. Frequent inventory counts enable you to spot shrinkage quickly and trace
back to the origins of the problem.

2. Scan received items in quickly: Don’t let the receiving area become a bottleneck in your
company. Make sure that all newly arrived items are scanned into your inventory
management system as soon as possible.

3. Use barcodes:
Barcodes eliminate potential data entry mistakes by automating the scanning and
stock-taking process.

4. Train employees:
Train your employees on inventory management best practices. Teach them how to
scan items. Set standards for how quickly you’d like to see items entered into
inventory once they arrive in the receiving area. The more you standardize your
processes the less likely there are to be gaps that allow for items to slip
through.

These are
simple tips, but they go a long way towards minimizing shrinkage. With standard
inventory management practices in place at your warehouse, you can reduce
losses and improve profits.

topShelf
from Scout Software supports cycle counts as well as traditional inventory audits.
It’s an inventory management system for e-commerce businesses that can help you
reduce manual count errors and improve efficiency. For more information, visit Scout Software or contact us.

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Let us show you how topShelf Cloud-Based Inventory Management Software can help you streamline processes, increase inventory visibility and accuracy while increasing your revenue.

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