As retail and eCommerce businesses grow, inventory usually becomes one of the first areas that starts causing problems. A manageable amount of stock can quickly become difficult to control once more products, more orders and more sales channels are added into the mix.
A lot of businesses begin by storing products wherever there is space available. At first it might only be a few shelves, a spare room or some stock stacked in the corner of an office. Over time though, businesses often find themselves dealing with stock spread across multiple areas, incorrect stock numbers, delayed fulfilment and money tied up in products that are not selling quickly enough.
According to the Australian Bureau of Statistics Retail Trade Data online retail spending across Australia continues to grow, which means smaller businesses are now handling more stock movement, more deliveries and more fulfilment pressure than they were only a few years ago.
The businesses that usually manage growth more smoothly are the ones that improve their inventory processes before things start becoming difficult to manage.
Make Sure Your Stock Numbers Are Accurate
One of the most common problems for growing retail and eCommerce businesses is not knowing exactly what stock they actually have available.
Many smaller businesses still rely heavily on spreadsheets or manual stock tracking because it feels simple and familiar. That approach can work reasonably well when order volumes are low but once products are being sold across multiple platforms such as Shopify, eBay, Amazon or social media marketplaces, mistakes become much more common.
Incorrect stock numbers can lead to products being oversold, customer orders being delayed and staff wasting time manually checking shelves to work out what is actually available. It also makes purchasing decisions harder because businesses often end up reordering products based on guesswork rather than accurate stock data.
Even relatively simple inventory software can make a major difference once businesses begin handling larger stock volumes. Businesses looking for extra room while stock levels increase can also benefit from using flexible business storage solutions instead of overcrowding their working space.
Avoid Letting Stock Take Over Your Working Space
A lot of growing businesses slowly lose control of their working space without really noticing it happening.
Extra stock starts appearing in offices, hallways, packing areas and any spare corner that is available. Eventually staff spend more time moving boxes around or trying to locate products than focusing on the actual work that needs doing.
This is one reason many businesses choose self storage for eCommerce before committing to larger warehouse space.
According to CBRE Melbourne Industrial and Logistics Figures industrial vacancy rates across Melbourne remain low, which continues to place pressure on warehouse availability and commercial rental costs across Victoria.
For many smaller businesses, moving into a larger warehouse too early creates unnecessary financial pressure through higher rent, longer leases and increased overheads. Flexible self storage gives businesses additional room for inventory without forcing them into long term commercial commitments before they are ready.
Many businesses use storage units for excess inventory, seasonal products, packaging supplies and slower moving stock so that their main workspace remains practical and organised. Businesses looking for extra space can also get a quote from Total Self Storage to find a storage option that suits their stock levels and business needs.
Keep Your Best Selling Products Easy to Access
One simple change that makes a noticeable difference is separating fast selling products from slower moving stock.
Products that are packed and shipped every day should always be easy to reach, easy to count and stored close to packing areas. Businesses often lose a surprising amount of time searching through shelves or moving less important stock out of the way just to reach products that sell constantly.
Keeping high demand products organised and accessible helps speed up fulfilment, reduces packing mistakes and makes stock checks easier during busy periods.
It also helps businesses notice sooner when popular products need reordering before stock levels become too low.
Plan Properly for Busy Sales Periods
Most retail and eCommerce businesses already know which times of year place the most pressure on inventory.
Periods such as Christmas, Black Friday, EOFY sales and school holidays can increase order volumes very quickly and businesses that are unprepared often struggle with stock shortages or over ordering.
Many inventory problems happen because businesses leave purchasing decisions too late or rely too heavily on assumptions rather than previous sales data.
Looking back at previous sales periods can help businesses understand:-
- which products sold quickly
- where stock shortages happened
- which items sold slowly
- how long suppliers took to deliver stock
- how much inventory was left afterwards
Even basic planning and forecasting can make inventory management much easier during busy periods.
Research from McKinsey & Company continues to show that supply chain and inventory visibility remain major challenges for growing retail businesses worldwide, particularly for businesses operating across multiple sales channels.
Check Deliveries Properly When Stock Arrives
A surprising number of stock problems begin when deliveries first arrive at the business.
Products are sometimes signed for without being checked properly, stock is put away before quantities are confirmed or damaged items are missed completely. The result is usually confusion later when stock numbers stop matching what the system says should be available.
Having a consistent delivery process helps avoid a lot of these issues.
Businesses should make sure deliveries are counted properly, damaged products are identified straight away, stock numbers are updated immediately and products are stored in the correct location as soon as they arrive.
These are relatively simple processes but they become far more important as businesses grow and more staff become involved in receiving and packing stock.
Keep Inventory Levels Under Control
Inventory has a direct impact on cash flow because every product sitting on a shelf represents money already spent.
A lot of growing businesses make the mistake of ordering too much stock because they are worried about running out of products during busy periods. The problem is excess stock can create financial pressure very quickly if products do not sell as expected.
Too much inventory often leads to:
- money tied up unnecessarily
- storage space problems
- damaged stock
- outdated products
- slower cash flow
Good inventory management is really about balance. Businesses need enough stock available to fulfil orders properly without filling storage areas with products that may sit untouched for months.
Businesses that regularly review stock movement and keep storage organised usually find it easier to manage purchasing decisions and fulfilment during periods of growth.
Keep Storage Areas Organised
Organised storage saves time across almost every part of the business.
When products are labelled clearly and stored properly, staff can locate inventory faster, packing becomes easier and stock management become more accurate. Businesses also reduce the chances of products being misplaced or forgotten completely.
Even smaller businesses benefit from having:-
- shelving systems
- clear stock labels
- organised packing areas
- separate locations for incoming stock
- proper storage layouts
Without organisation, inventory management for eCommerce becomes increasingly difficult as order volumes grow.
Businesses looking for additional space during busy periods can learn more about commercial and business storage options available through Total Self Storage.
Deal With Inventory Problems Early
Inventory issues rarely appear overnight. In most businesses they build up gradually as stock volumes increase and operations become busier.
Orders take longer to pack, stock counts become less reliable and products become harder to locate. By the time businesses notice the impact properly, a lot of time and money is already being lost dealing with avoidable problems.
Putting better inventory systems and storage processes in place earlier usually makes growth far easier to manage later on.
For many Melbourne retail and eCommerce businesses, flexible self storage provides extra space for inventory without the cost and commitment of moving into larger warehouse premises before it is actually necessary.
You can learn more about business storage at Total Self Storage or see current storage prices and unit sizes online.
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