Although it may seem like a daunting task, accurate and efficient inventory counting is essential for every business owner, as it directly affects profitability and operations.
Research shows that improving inventory accuracy can boost sales by 4-8%, while poor tracking impacts the finances of 62% of businesses.
To help you maximize revenue and minimize errors, here are three best practices for effective inventory counting.
Tip #1. Always Keep Your Inventory And Back Stock As Organized As Possible
A great way to keep your inventory organized is by neatly arranging your back stock by product SKUs in clearly labeled boxes. Regularly count your back stock and update your inventory in your sales platform, such as Shopify, to ensure accuracy.
For your front-of-house inventory, maintain a tidy, well-organized space and keep your counts up to date in your sales platform. Establish a system to monitor stock levels, so you’re never caught selling items online that you don’t physically have in stock. This proactive approach will help streamline your inventory management and keep your business running smoothly.
Tip #2. Utilize Your Displays To Create Impulse Items And Increase Average Checkout Value
The last thing you want as a store owner is to be stuck with excess inventory that isn’t
moving. Go through all of your inventory and think of creative ways to display your merchandise throughout your store so that you can display as much product variety as possible.
Create impulse items by strategically placing products next to the register. This method works perfectly with seasonal items as well. Increase your average checkout value by offering bundle deals and gift baskets. You can implement these strategies both in-store and online, utilizing third-party apps to upsell by presenting add-ons during checkout.
We added a unique display for our retailers that showcases our luxe mixer cubes and can be easily placed at the register as a great impulse buy.
Tip #3. Understand Product Velocity Versus Product Footprint
Each product has its own unique velocity, which refers to the rate at which it sells within a given period. Understanding how long it typically takes for a product to move through your store is key to making smarter sourcing and inventory decisions.
Equally important is considering a product's footprint — the space it occupies on your
shelves. By selecting items with smaller footprints, you can maximize space, ensuring better organization and display options in your store.
To boost product velocity, consider grouping different SKUs together. For example, displaying our Luxe Mixer Cubes alongside glassware creates a powerful upsell opportunity, encouraging customers to purchase both products at once.