Merchandise inventory encompasses the raw materials, works-in-progress, and finished product items that a business holds in stock for the purpose of selling to customers.
Accurate inventory accounting helps businesses optimize cash flow, prevent overstocking or stock-outs, ensure financial reporting is correct, and have enough supply to meet customer demand.
Common inventory valuation methods include FIFO (first in, first out), LIFO (last in, first out), and the weighted average cost method. Each calculates inventory value differently based on cost of units sold.
Proper inventory management helps ecommerce businesses avoid losing sales from stock-outs, reduce carrying costs from overstock, fulfill orders efficiently, and maintain levels to match consumer demand.
Third-party logistics (3PL) providers can handle the complexity of inventory management on behalf of ecommerce businesses. This allows online sellers to focus on running their business.
Simpl is a 3PL that offers end-to-end solutions for ecommerce inventory management and order fulfillment. This includes warehouse storage, inventory tracking, shipping logistics, and more.
Contact the Simpl team today to learn about their customizable solutions for simplified inventory management tailored to your online retail business.
