No one wants to hear that dreaded phrase, “We’re out of inventory.” But what many buyers don’t realize is that it’s just as bad an admission for the seller. It means they’ve made a misjudgment somewhere along the line: they might be drowning in inventory with one item, and completely sold out on another. Let’s focus on the ways the fashion industry can unlock inventory solutions that keep inventory moving at the fastest possible speed.
The Return of the “Inventory Problem”
As Business of Fashion recently noted, fashion’s “inventory problem” has made a return. They cited BlueFin Research data showing that inventory levels rose 27 percent compared to the previous year between 2021 and 2022. This means more discounts for sellers, but not the discounts that they ever intended.
Retailers might slash prices with one product to move inventory. But on products that create better margins, they might not be able to take new orders and deliver. That means the simplest inventory miscalculations and misjudgments can erode revenue. Just as importantly, it can get in the way of rapport with your customers. If a customer can always choose their fulfillment method and have their product in their hands when they need them, that builds trust with your brand that’s not easy to earn once it’s lost.
The Solution: Digitizing Inventory with Our New Playbook in collaboration with retail dive
Nailing Customer Demand with the Right Inventory, Right Now
If you're interested in reading the playbook, download it at the link below.
The solution for retailers? Digitizing inventory, building new visibility into product selections. This has the side-effect of making inventory automation possible. That can lead to better alerts for sellers and make the entire process more efficient.
Digitization also opens up new solutions for retailers who need to get their inventory moving. For instance, they can create assortments that highlight particular products that buyers might like. These assortments make it easier for buyers to find items in your inventory they might not have been able to find otherwise. Features like sorting-by-store, choosing delivery method, product classification, and new categories can unlock products that might not have been at the forefront before the buyer started sorting.
There are other ways companies can use NuORDER to prepare for their inventory needs. One method is to create digital assortments that help sellers preview which items are going to sell the most that season. A brand can create a single catalog, for example, which even allows buyers to preview products before they’re ready for the general market.
Identifying Compelling Digital Experiences for Both Consumers and Buyers
Inventory only moves when there’s something compelling enough about the products for the buyers to want more of it. That can come from a variety of sources: price, whether the item is in fashion, or even the buying experience that introduces the inventory.
One solution that’s growing in popularity: virtual sampling. This isn’t only an exciting way for buyers to browse inventory but reduces the need for physical inventory in the first place. “Fewer physical samples means savings in time and costs as well as less waste,” notes Business of Fashion.
There is no one-size-fits-all approach to inventory management. But with a platform that can unlock a number of inventory solutions, it’s possible for retail sellers to find the tools that please buyers—and ultimately, unlock the inventory that’s been previously stuck.
