To build a sustainable, profitable and scalable e-commerce business, you need to understand how to carry out good stock management and how to integrate it with paid media platforms.
This way, you avoid advertising products that have few color or number options in stock, as they will have a low conversion rate and , consequently, a low return on investment (ROI).
If that sounds too complicated for you, know that it's not! With the use of technologies such as Artificial Intelligence and Robotic Process Automation (RPA), this integration takes place safely and automatically.
In this post, we've put together some tips to help you with stock management, as well as some Pareto solutions to optimize your paid media campaigns and increase your e-commerce sales. Check them out!
7 Tips to Avoid Stock Management Problems in Your E-commerce Business
Before getting to know the technologies suitable for integrating your e-commerce with online advertising platforms, learn how to improve the management of unavailable items in your online store.
1. Find out what your minimum stock requirement is
Minimum stock is nothing more than the minimum quantity of goods that a company needs to have in stock in order to avoid stock-outs and excess products. Calculating the minimum stock is the first step to ensuring the availability of your products.
A simple formula to find out what your minimum stock is is to multiply average daily consumption x replenishment time. Average daily consumption is the number of items your company usually sells online per day, while replenishment time is the number of days it takes to replenish all the items.
2. Don't wait for stock to run out before ordering new items
Another key tip for ensuring you have enough stock is not to let the products run out before placing new orders. As it can take a few days for the supplier to deliver the items, the ideal is always to make purchases in advance to keep your stock up to date.
3. Predict your sales
Knowing your customers well and their preferences is an indispensable practice to avoid disorganization and stock problems.
This is because by knowing your customer's profile and how they behave on the internet, what their tastes and consumption habits are, you can make a sales projection and prepare your stock of products based on this.
4. Know the seasonality of your products
We know that in certain periods some products experience fluctuations in demand. Customers tend to consume more products on seasonal retail dates, such as Mother's Day, Valentine's Day and Christmas, for example.
To make sure you don't miss out on these dates and that your stock can handle all the orders, find out the seasonality of each product, identifying the items that need to be stocked more heavily.
5. Keep an inventory of stock
One of the best ways to keep track of your products is to carry out a stock inventory. It serves to ensure that your stock control is correct, i.e. that your company actually has the stock it believes it has.
This way, if you have bought too many products and materials or if there have been stock losses, the inventory verifies the information and allows your team to act effectively to solve the problem.
6. Plan your purchases in advance
Planning purchases well in advance is essential for your company to take more strategic marketing actions.
By choosing products based on sales flow, selecting those that offer a good price, term and quality, you can create more assertive marketing campaigns for the right audience at the best time for the sale to happen.
7. Automate your processes and integrate different sectors
Another best practice is to automate repetitive processes with a high volume of data and integrate your company's sectors. Automations are important so that you can focus more on the strategic, creative and service stages, while the machine does the repetitive part.
By investing in technologies that allow you to integrate logistics with online advertising, for example, you can improve communication and optimize processes.
Pareto Technologies to Increase Your E-commerce Sales
A Pareto is an Artificial Intelligence (AI) and Robotic Process Automation (RPA) company for Marketing and Sales. Over the years, it has developed automations that are used in more than 140 countries.
Ad management with a perforated grid
Can you imagine advertising sneakers that only come in size 39? You'll only serve a few people and what's more, products with few options available have a low conversion rate and low return on investment (ROI).
This situation, known as a Grid Lock, is common and usually happens when the best-selling product goes on sale and several sizes are left out of stock.
The problem is that paid media platforms, because they identify good historical performance, continue to give priority to that product, even if there are no options in stock. This wastes money that could be directed to other products.
With this in mind, Pareto has developed this Grid Pierced Ads Management automation that makes it impossible to advertise parts with a grid pierced so that you don't waste investment on products with low ROI.
Now you no longer have to worry about the impact of stock variation on Facebook Ads and Google Shopping Catalog campaigns, Tess integrates e-commerce with paid media platforms, while you focus on other marketing and sales strategies.
Dashboard for E-commerce
Integrate the data from your e-commerce platform (VTEX, Loja Integrada, Shopify etc) with the main paid media platforms (Facebook Ads and Google Ads) and access all your metrics in one place.
With Pareto's E-commerce Dashboard you can see all the indicators segmented by channel or specific campaigns, such as revenue, investment and ROAS.
What's more, by viewing performance by geographical location, you can find out which city or even which neighborhood brings the greatest return to your e-commerce quickly and visually.
Now you know how to save money on paid media campaigns by not running ads for products with few options in stock. But doing this manually can take up a lot of your team's time. Talk to Pareto Experts Now!
