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Category: Inventory

How to increase margin and avoid higher stockout costs by reducing sales velocity

How to increase margin and avoid higher stockout costs by reducing sales velocity

Higher stockout costs due to lack of stock is one of the worst things that can happen to any online retailer. While in offline retail, a stock-out has the solitary impact of lost sales until the next batch arrives, in online retail, it means loss of ranking position, which has a much longer-lasting effect. What can a seller do to keep this from happening? Usually, retailers place all their focus on inventory replenishment. But the truth is that two lines of attack can help you avoid stock-outs—inventory and sales.