The Basics of eBay Inventory Management
The Best eBay Inventory Management Techniques
The Best eBay Inventory Management Techniques
Choosing the Right eBay Inventory Management Solutions
There are various eBay inventory management techniques, and what works for one seller might not be right for the next one. Selling one or two items is far different from using eBay as a standard sales channel for your business with dozens or hundreds of items. The latter situation will be much more challenging in scope, which means your inventory management techniques need to be top-notch to succeed.
To have excellent supply chain management requires a well-organized inventory. Sellers who do not implement high-level eBay inventory management techniques will often run into more problems with orders and stock than those who are on top of things. Lack of proper inventory management can create shipping issues, stocking problems, and other obstacles that are hard to get past.
Thankfully, there are several methods of handling your inventory management to become successful on eBay. Based on the scale and size of your business, some of the solutions may be more feasible than others. The techniques listed below are designed to accommodate many types of eBay businesses by boosting your level of productivity and streamlining the supply chain.
Multichannel Integration on eBay
Multichannel integration ensures that your products are seen by more people, which increases the chances you will make a sale. You can learn more about integration with various channels in other chapters of our guide (see the table of contents to the left or above). The basic idea behind integration is that you have your listings for products on several platforms or websites. For instance, you can integrate Amazon with eBay to create a larger audience.
There are nearly endless options with integration. Sellers can choose to integrate a single platform with eBay or have several that all connect with one another. When each integrator is connected to a main location, it prevents running out of products when trying to sell on several sites with unique listings and order options. Everything is handled on a central platform to prevent unnecessary errors.
Dropshipping on eBay
Dropshipping is one way of sourcing products to sell on eBay. It is a convenient and easy way of selling various items without dealing with handling and organizing inventory on your own. Rather than having stock at your home that you send out to customers when they make an order, a third-party supplier sends out the orders in your place. This cuts down on the level of inventory management you need to do on your own.
The major benefit of choosing dropshipping is that the seller never needs to have the physical products in their care to sell them and have them shipped out to customers. However, specific concerns related to the dropshipping need to be considered before choosing it as a primary inventory management technique. For instance, it’s essential to ensure that your suppliers have all the items you need in stock before you take any orders.
Multichannel E-commerce software like SureDone often automates the process of dropshipping by importing inventory levels from suppliers, automating the sending of the order and also retrieving tracking numbers from the supplier for updating the buyer on the channel.
Backordering on eBay
When considering the basics, backordering is when you sell items that you do not have in stock at the time. This typically occurs if a customer orders one of your products when it is out of stock or hasn’t yet become available. On the one hand, this might seem positive since it means that people are interested in buying from you. However, you need to be capable of handling the situation properly.
For small-scale eBay sellers, purchasing more stock isn’t always the best option, especially if the item doesn’t tend to sell well. Overstocking can be more of a gamble than backordering in this situation. However, this leads to a customer needing to wait longer for you to access the product they want from a supplier. Some customers will be displeased by anything but the quickest shipping option.
With a larger eBay business, backordering can indicate that a seller isn’t on top of their inventory management. If this is a situation you are in, this could be the appropriate time to begin streamlining and improving the inventory management techniques that you use. It’s also likely the right moment to invest in a quality eBay inventory management system.
In addition, eBay tracks what you list as your standard fulfillment time and how long it actually takes you to post a tracking number on the order. If you often miss your committment, you may be penalized by having your products show up in search less often - or, in extreme cases, being suspended from selling. You can track your metrics on your eBay seller control panel.
Bulk Shipping on eBay
If you polled a group of eBay sellers about inventory management techniques, the most common iteration would likely be bulk shipping. The idea behind bulk shipping is that a seller purchases and ships goods in large numbers rather than small ones. This can provide a method of saving money for sellers operating out of a small space, but it can create larger expenses for sellers who own a warehouse or other storage space. However, this is typically offset by the additional money saved using bulk shipping.
Something to keep in mind is that reducing the chances of being out of stock of a product can make customers happy since you consistently fulfill the orders they make. As such, this eBay inventory management technique tends to work best for businesses that have products that sell consistently. These items typically have longer shelf lives and a predictable level of demand. The primary risk with eBay bulk shipping is that it takes an upfront investment. If the demand for products goes up or down, which isn’t uncommon, a seller could be left with stock taking up space and not being sold.
Consignment on eBay
The final common eBay inventory management technique is consignment. This tends to be especially popular with eBay or an eBay alternative seller just getting started in the business. With consignment, there is no need to pay for the items up front, which keeps money in the bank and can eventually move a seller into eBay trading. Sellers pay for the items as they sell, giving them a chance to become established in a niche without a major investment in goods.
Since sellers only pay when inventory is sold, this can improve the cash flow of a new eBay seller. The most common reason to choose this type of inventory management technique is that it offers extraordinarily little risk. Those who work via consignment don’t have to be concerned about spending money on items that won’t sell or running out of products that do.
You'll often see stores that offer to sell your eBay products for you. They take pictures, put up the listings and ship the products - and then take a percentage of the sale. You don't get paid until the product is sold. This is the modern day consignment shop.
Grow your eBay Business with Top eBay Inventory Management Software
SureDone offers a singular simple solution for growing your brand on eBay. You can sync, sell, and ship your products on Amazon, eBay, and other platforms. Our software offers order management for all channels you use, a centralized inventory and product data source, and much more.
Ready to learn more about eBay integration options? Learn why integrations are important and how to incorporate them with a variety of storefronts like BigCommerce and Shopify.