What is inventory in ecommerce?
Inventory refers to all goods a business holds for sale, including finished products ready for customers as well as raw materials or components used in production.
Why is inventory important?
It ensures that products are available to meet customer demand. Poor inventory levels lead to missed sales or excess stock tying up capital.
What types of inventory exist?
Types include:
• Finished goods ready for sale
• Raw materials used in production
• Work in progress items
How is inventory tracked?
Businesses use inventory management systems to monitor stock levels, locations, and movement in real time.
What risks are associated with inventory?
Overstocking leads to storage costs and potential waste, while understocking leads to lost sales and poor customer experience.