Inventory

Strategies Stores Are Using to Stay Ahead

The latest sales data indicates that online sales are continuing to grow, while the pace of in-store sales is slowing down for many retailers.

Big box stores are adopting different strategies to deal with this shift in the way consumers shop, but there is no question they are taking this trend seriously.

Target announced recently that its fourth quarter online sales grew by 30% in 2016, while its store sales dropped by 6.1% year over year, prompting Target to cut its prices at the expense of profits. They are also planning to make better use of stores as fulfillment centers, and equipping all sales associates with mobile point of sale devices. The concept behind this strategy is that shoppers will think of Target as a great place to shop with great prices.

The brand Tommy Hilfiger who in the past derived sales not only from their own stores, but also from high street giant Macy’s, chose a different route. Tommy Hilfiger’s in store sales were lackluster and Macy’s is planning to close many of its stores, further contributing to the brand’s decline. Deciding to modernize the brand, Tommy Hilfiger looked to social media to bring the brand to the attention of younger audiences, and then debuted its latest collection with a fashion show in Venice Beach, California – an unusual move for a brand that would typically show its products in New York. The results were astonishing, with a surge in sales online in the 24 hours following the show, and 50% of traffic from first time visitors.

In line the with these stores, Kohl’s has also seen growth in its online sales and a decline in its in store sales. To counter this, they are reducing the size of their stores from around 88,000 square feet to something smaller, and reducing inventory by 3% across all stores for the next three years.

Whether it’s a price change, a new way of marketing your brand, or re-evaluating the use of the square footage in your bricks and mortar store, the pace of change in today’s retail industry requires continual assessment to keep the attention of today’s consumers.

Small and medium sized retailers also have to be innovative looking to more control of inventory, switching from in-store to online sales, using physical space not only as a store but also as a fulfillment center, and using technology to bring it all together – and who said retail was easy!

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Stop Displaying Out of Stock Items in Your Yahoo Store

out of stock items
 

If there is one thing that is driving shoppers crazy it is displaying products in your store that you don’t have available. Whether it says, Sold Out, Not in Stock or Out of Stock – they don’t want to see it.

If you display a product on your Category or Section page, and the shopper clicks through to the item description only to find it’s not available, they will soon move on to another website for a more satisfying shopping experience.

Even if you show products on your Category and Section pages as Out of Stock, or Sold Out, it soon looks as though you don’t have anything that is available. We all know how hard it is to keep up with updating your website with fast moving, in demand products at the holidays, but to a shopper it might even look as though you are going out of business!

xocbox has the answer for Yahoo merchants who don’t have the time or resources to keep up with the time consuming process of marking products in and out of stock. With xocbox, once your item count goes to zero, the product changes to not orderable in your Yahoo catalog manager.

No manual changes for each item!

Contact xocbox to learn more about this feature.

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Managing Inventory in Your Online Store

inventory monitoring software
 
It’s that time of year again, new shipments are arriving daily, storage space is getting smaller, and there’s a buzz in the air anticipating the arrival of the holiday shopping season which has already started with the Back to School products.

eMarketer forecasts that holiday sales in the US will grow by 5.7% in 2015, the biggest increase since 2011, and while this is great news for retailers both on and offline, it does present some challenges.

How do you manage inventory so that you have enough of the popular products that are flying off the shelves, and don’t order more products that include those that have sold only a few items?

xocbox can help you. Our inventory monitoring and out of stock widget in your online store mean that you always know when products are running low or sold out, helping you to decide when to place orders to replenish your stock.

We will work with you to provide the level of automation that is right for your store. Whether you want supplier feeds to your store, or want to automate the whole process right through to sending orders to your drop ship suppliers, xocbox systems will save you and your staff time during the busy shopping season.

If you have more than one store, no problem – let xocbox track sales in all your stores.

For more information on how to take control of the inventory in your Yahoo or Woocommerce store before the holiday season, call us at 858-752-3803, or click the contact button below.

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What is Drop Shipping?

shipping boxes and supplies

When you open an online store, the main thing you need is inventory.

Without any products to sell, you don’t have a store.  This seems pretty obvious.

However, many people are surprised when they start listing products online, as it often takes many more product lines and categories than first anticipated to fill an online store.

So if you don’t have the funds to buy hundreds of different product lines, or simply don’t have the storage space, then drop shipping may provide the answer.

How Does Drop Shipping work?

Basically, you do not purchase products to store in your own warehouse until sold.  Instead, you make arrangements with a wholesale supplier to list their products on your website, and when a product is sold, the supplier ships the product.  Sounds simple.

The arrangement is straightforward enough, however, there are a few things you should be aware of.

  • Firstly, you lose control of the inventory, and this may ultimately cause customer service problems.  For example, if there is a delay in shipping, or a product is damaged on arrival.
  • Also, since drop shippers usually sell to many retailers, keeping track of their inventory, as well as your own is difficult.
  • Profit margins on sales are also lower than if you were to purchase products and sell them directly to your customers.

The benefits of drop shipping are:

  • You can add more products to your website, and give your customers greater selection.
  • You don’t have to deal with the packing and shipping of products yourself.
  • You can begin your retail store without the expense of buying inventory to stock your store, so this can be a good way to get started.
  • You can “try out” a new product or new category, just to see if it’s a good fit for your store, without actually buying the product.

In conclusion, drop shipping has many advantages, and some disadvantages.  Retailers often find a combination of products housed in their warehouse, and those shipped directly from drop ship suppliers is a good way to go.

Once you have elected to work with a drop shipper, always monitor their performance in regard to product fulfillment and customer service.  If you find that a particular supplier does not perform well for you, it is better to stop selling that product, rather than risk your online reputation.

For information about selling through drop ship vendors, and how xocbox systems can help you keep track of shipments and inventory, please contact xocbox.

 

 

 

 

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