In a post-COVID world, retailers need to optimize global inventory to boost online sales and maximize margins. Virtual inventories and dropshipping can make this happen by allowing retailers to stock a wider range of products across multiple regions and channels. (Photo: Shutterstock)
During the pandemic, retailers worldwide evolved their practices to switch to contactless sales, whether online with traditional delivery, or arrangements like curbside pickup. The trick was to provide customer experiences that were on par with traditional in-store shopping to maintain sales.
Now that many restrictions have been lifted, customers have the freedom to shop in person but still rely on online sales more than prior to the pandemic. Retailers must now deliver memorable post-COVID shopping experiences in a way that is both profitable and sustainable while seamlessly integrating the new experiences they have added into their traditional sales channels.
Much of this effort depends on discovering and delivering available stock fast and managing inventory effectively to maximize margins. Customers must have easy access to products and know exactly what is available, when and where. Many retailers are making this happen with near real-time inventory visibility and a distributed order management system to route products from the most optimal location.
For example, an electronics retailer might make it possible for customers to know if a specific camera or smartphone is available in a store closest to them or have a good idea of how long it will take for that product to be shipped to their local store. Alternatively, they will be able to show them what the closest store is where it is available immediately. Two fulfillment strategies—virtual inventory catalogs and dropshipping—make this customer experience possible by improving control of stock availability while minimizing business risk.
Virtual inventory catalogs
Virtual inventory catalogs improve control and critical product availability by segmenting stock data by channel, market, region and product. In addition, inventory rules such as buffers or safety stock levels can be set up to ensure products are not oversold.
Controlling what is sold and where creates opportunities to cross and upsell. Here are a few ways retailers can optimize sales with virtual inventory catalogs:
Virtual inventory catalogs provide information across all customer channels so stock can be more easily controlled and sales fulfilled. This builds efficiencies within the business and meets customers’ needs who expect increasingly rapid and convenient purchases. Ultimately, delivering the most products through the right channels into the hands of the right customers will mean omnichannel retail success.
Dropshipping
Dropshipping is an order fulfillment method that doesn’t require a business to keep the products in stock. Instead, the store purchases items as needed from a third-party supplier to fulfill sales. The third-party supplier then ships items straight to the customer.
This can be a great business strategy for businesses to create additional revenue from selling complementary items from other suppliers. However, choosing the right dropship partner is vital to ensure a consistent customer experience. Here are a few things to consider before implementing the strategy:
In a post-COVID world, retailers need to optimize global inventory to boost online sales and maximize margins. Virtual inventories and dropshipping can make this happen by allowing retailers to stock a wider range of products across multiple regions and channels. They also help reduce the potential to overstock or outsource the stocking and delivery process entirely. These advanced strategies can enable retailers to adapt quickly to changing market conditions and demands, allowing them to thrive and survive both on and offline.
About the author
Nicola Kinsella is senior vice president of global marketing forFluent Commerce, which offers a cloud-native distributed order management system for omnichannel retailers.
