5 REASPONOS YOU NEED IN-STORE INVENTORY
Thursday, October 26, 2017

Categories: Inventory

5 Reasons You Need In-Store Inventory

In-store inventory can make a big difference to your business.  Inventory in a Distribution Center (DC) can be more efficient. Yes. However, it is the inventory that you have in the field, in your stores, that is seen and sold. Here are the five reasons in-store inventory is the omni-channel retail strategy you have to implement now.

It is the inventory that you have in the field, in your stores, that gets seen and sold. It provides instant gratification.1 – Ship-From-Store For Online Orders

Robust order management systems make ship-from-store a strategic option for retailers. You don’t need all your stock to be in the DC in order to be efficient, and to be able to satisfy online orders quickly. Order management systems with order consolidation capabilities make sure you are shipping from physical stores – intelligently.  Retail order consolidations mean a customer’s order can be sent as one shipment in one box, even for multi-unit orders that must come from several different locations. Order consolidation lets retailers ship-from-store efficiently, and profitably.

2 – Reduces Shipping Costs

Omni-channel retail lets you take advantage of the benefits of pickup in-store services. Specifically, these are click and collect services. That means customers purchase or reserve online, then choose to pickup the item directly from the store, or a location near them. As a retailer, this is a huge bonus. Not only does the customer get their merchandise immediately, it saves you the cost of shipping the products. Furthermore, catering to the customer’s desire for the instant gratification of getting their purchase right away often results in a higher level of customer satisfaction.

3 – Consolidates Distribution Centers

If you do a good enough job of getting as much of your retail inventory into the field as possible, you might be able to reduce your dependence on DC’s. DC’s are a big deal. They are often very large warehouses with your retail goods sitting in them, mostly collecting dust. In fact, with a greater push on omni-channel retail, there is a growing trend helping retailers reduce their dependency on DC’s. Imagine if you could reduce a DC from your fulfillment network. How would that impact your bottom line?

 

Inventory Visibility Brief

 

4 – It’s Where The Purchase Happens

When an item is out of stock (OOS) once, 31% of shoppers will drop the purchase or shop elsewhere.

Get the goods as close to the customer as possible. That’s where they will buy it! We still see 91% of sales happening in-store. The more retail inventory you have close to the customer, the more likely you will lock in the sale, then and there. Despite this,  8.0% of retail inventory is out of stock for any given order. Having more in-store inventory, where your customers are looking for it, means retailers can reduce some of those out of stock levels.

5 – Reflection On Your Retail Brand

Additionally, a recent Repsly study showed that when an item is out of stock (OOS) once, 31% of shoppers will drop the purchase or shop elsewhere. Most of them will try to substitute the product for another purchase. That’s the first time. However, there is a big drop off on that loyalty effort for the second OOS and even greater for that third OOS. Moreover, in time, customers can lose confidence in the retailer, and their brand. Having more of your inventory in-store will help reduce this OOS problem.

In-Store Retail Inventory Makes Sense

It just makes sense to have in-store inventory, so that customers can access it. They can see it, touch it, feel it, try it on, and consequently, BUY IT! Get that inventory out there!

 

Author:

Charles Dimov - Director Marketing OrderDynamicsCharles Dimov is Director of Marketing at OrderDynamics. Charles has 21+ years experience in Marketing, Sales and Management across various IT and Technology businesses. Previous roles include Chief of Staff, Director Product Marketing, and Director Sales. Charles has held roles in brand name firms like IBM, Ericsson, HP, ADP, and OrderDynamics.

 

 

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Four Tips to Help Retailers Prepare for In-Store Pickups   How can you....Ship From Store