How Retailers Can Leverage From Stock Alerts
Staying on top of inventory management is important for retail stores in order to maintain a multichannel approach to sales. Once you’ve implemented the right tools, it’s up to you to put workflows and automations in place to make your software work proactively for you. One way to do that is with stock alerts.
Value of stock alerts
Running out of stock is a costly issue that retailers face. Stock alerts are designed to help retailers avoid this problem. Inventory alerts are valuable beyond helping keep items in stock. They also reduce a lot of susceptibility to human error and time constraints by automatically keeping you apprised of impactful changes in stock levels.
Optimizing inventory levels helps you become more profitable, use warehouse and storage space more effectively, and reduce holding costs or missed sales.
If you’re managing online and offline channels, multiple store locations, or both, stock alerts can help you ensure every location has enough stock on hand to meet demand.
Ways to use stock alerts in your retail business
- Maintain operational control
Stock alerts help your team stay in control logistically. Fewer last-minute orders and more automated systems create seamless retail operations and help your team more effectively manage stock. Experts suggest using a higher threshold for your most popular and fastest-selling items, as well as the items you frequently run out of. If reordering frequently is too expensive, consider negotiating a better price with your supplier for bulk orders. This is a great opportunity to boost your margins and gain even more profit from your best-selling items.
- Know when to raise or lower prices
A lot of low-stock alerts for particular products can indicate it’s a good time to raise prices. At the same time, a stock alert for aging inventory could mean it’s time to run a promotional discount. Increasing the prices when stock is low could be advantageous if you have a steady flow of customers. However, promotional discounts are also preferable as customers are always attracted to sales. You can leverage stock alerts as a marketing tactic to drive sales, both online and in-store.
- Stay organized during busy selling periods
Busy selling periods, whether the winter holidays or another seasonal surge, pose great sales opportunities but also bring logistical challenges. Unpredictable demand, higher volume, and temporary employees who don’t quite know the ins and outs of your business are just a few contributions to the chaos of these times.
These periods come and go quickly, so it’s important to be able to react to the opportunities they provide just as quickly. Stock alerts can help you stay apprised of fluctuations in inventory so you can develop promotions, pricing, and merchandising for slow-moving stock, giving your buying team some breathing room for fast-moving items.