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The Tech Revolution: Tools Empowering E-Commerce Merchants

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Your e-commerce business requires the latest software to understand the future demand-supply scenario in the market and assess your inventory needs accurately. This is why you need software that provides an accurate picture of your inventory.

Your most effective tool for your e-commerce sales platform is software that can generate data and perform AI-generated analytics, enabling you to make the right sales decisions related to your inventory position.

According to Verified Market Research (VMR), a corporate market intelligence group, the global demand for inventory forecasting software is growing. The latest VMR research states that the Inventory Management Software Market size was valued at USD 1213.97 Million in 2020 and is projected to reach USD 2998.55 Million by 2028, growing at a CAGR of 11.9% from 2021 to 2028.

Without dedicated software, you may be unable to formulate a sales plan for your e-commerce platform. You may not be aware of the futuristic demand-supply scenario that may emerge within a given time frame. 

Inventory software is necessary to answer the following five key questions related to your business:

  1. When should you clear your overstocked inventory?
  2. When should you stock commodities and goods based on market forces?

iii. How do you do inventory forecasting?

  1. How do you do demand planning?
  2. How do you streamline your supply chain based on the rise or fall in market demand for commodities?

If you use inventory forecasting software, you can easily analyze trends in demand and supply scenarios and understand purchase patterns, fluctuations in seasonal demand, and the overall buying patterns of individual commodities. Since software can automate the process, you can make informed business decisions about your inventory. Data analysis by software can enable you to formulate smart inventory planning, helping you avoid losses due to overstocking or understocking. As a result, your competitive edge in a crowded marketplace grows.

Why should you use inventory forecasting software?

There are practical reasons why you should handle your inventory and make future stock projections based on the data analysis done by the software. We are explaining below five such reasons:

  1. Easy cash-flow management: All inventory (already stocked) involves liquid cash. But the company’s cash flow depends on sales. If you don’t use inventory forecasting software, you may be unable to streamline the stock based on market demand trends. If you have stocked high-demand commodities, you can sell them quickly. But it will be the opposite with less-in-demand commodities. For this, you require AI-generated analysis. You can easily manage cash flow using software.
  2. Plan out inventory: For an e-commerce sales platform, the classification of high-demand goods is necessary. With this, you can plan your stock. In this regard, the software can help you rank or classify goods and commodities according to their demand trends. To scientifically plan your inventory, you require software to understand futuristic seasonal demand trends.

iii. Dashboard, a Business tool: If you are in e-commerce, the stock and sales dashboard can be of invaluable help to you in making business decisions and formulating the sales strategy. Software becomes essential to manage the dashboard. You get a daily summary of stock position vis-à-vis daily sales. This can help you assess what the future market trend would be, allowing you to stock accordingly.

  1. Order-Supply management: With software, it might be easier for you to formulate a supply chain management plan. As the supply chain depends on orders and available stock, software can generate a realistic picture of it. The supply chain involves the daily study of deliveries at multiple locations. Statistics generated by software can be of great help to you in understanding the supply and delivery situation at multiple locations.
  2. Stock Purchase decision: You can benefit from automated purchase decisions on a day-to-day or weekly basis with the help of software. The software will generate stock positions and provide you with data on which commodity needs to be purchased to store in the warehouse. Thus, the process of stock-purchase inventory management becomes seamless.

These reasons clarify why you must use inventory forecasting software to manage your e-commerce business. Those engaged in e-commerce business are increasingly using software to manage their inventory. You should resort to software to seamlessly manage your sales platform.

Conclusion

Marketplaces are becoming crowded. This is why traders selling or dealing with identical products and consumer goods face tough competition. Often, you have to make immediate decisions regarding your inventory. The application of software can significantly help you in this regard. If you understand the demand-supply scenario, you can seamlessly integrate your sales and supply chain plans. Your inventory forecasting becomes highly scientific based on data analysis done by the software. The AI-aided software can help you make correct inventory decisions and avert situations like overstocking or understocking.