The challenges of inventory management can test the mettle of even the most seasoned online retailers. There exist many hurdles, from the delicate balance of maintaining just the right stock levels to the logistical gymnastics of handling returns, but understanding them is the first step towards crafting effective solutions.
Overstocking
Another study by the IHL Group revealed that afghanistan telegram screening retailers lose nearly $472 billion annually due to overstock (2). This surplus not only ties up valuable capital that could be used elsewhere but also increases storage costs, potentially leading to wasted products, especially for items with limited shelf lives.
Understocking
On the flip side, retailers experience stockouts at a rate of 8% on average, which can create missed sales opportunities and dissatisfied customers, a scenario no business wants to find itself in (3). This statistic emphasizes the critical nature of maintaining optimal inventory levels to ensure that customers can always find what they're looking for, thereby fostering loyalty.