No one likes a cancelled order – not the retailer or the customer. But inventory management is something that can remedy both lost parties.
What is a cancelled order?
A cancelled order is a purchase that has been cancelled by the retailer for inventory-related reasons, such as out-of-stocks or damaged products.
Cancelled orders lead to a multitude of problems including, but not limited to, bad Seller Performance Ratings, decreased customer loyalty, and lost profit. You want to avoid all of these.
How do you avoid a cancelled order?
Inventory management is a software solution designed to provide complete visibility into the movement of inventory in and out of a warehouse, it’s locations, and quantities. It’s also the perfect solution to prevent cancelled orders from occurring.
Let’s dig into the simple and effective ways inventory management can mitigate cancelled orders.
Simple Inventory Management Workflows
Cancelled orders occur either because there’s poor planning involved (or none at all) or processes are overcomplicated.
Simple inventory management workflows correct these processes.
Inventory picking workflows should be easy to use, easy to customize, and easy to understand. With inventory management software, you can create workflows unique to your needs.
Quality Control (QC) workflows are essential to reduce cancelled orders. Think of QC as order verification.
Inventory management software takes away the manual hassle sellers might be implementing themselves, and instead utilizes automated processes like autoremove, QC on pick, and pick on QC as part of the QC process.
When you simplify picking processes like this and break them down into easier pieces, the chances of incorrect orders getting shipped are minimized.
Prevent Bad Seller Performance Ratings
Amazon sellers know the importance of good Seller Performance Ratings. They know it really well if it’s the sole purpose of their income. And they know that cancelled orders are a big no-no in the Amazon world.
Inventory management helps sellers increase Seller Performance Ratings with efficient inventory features aimed to eliminate cancelled orders.
One of those features is Inventory Buffers. Inventory Buffers are used either on a channel wide basis or individual product basis. It’s the perfect tool for multi-channel sellers.
Buffers control how much of a product is shown on listings vs. how many you actually have on-hand.
For example, if you want to list five pairs of socks on Amazon, but actually have 10 pairs in the warehouse, you can buffer the listing to only show five. This creates a sense of urgency for customers so they will purchase faster.
Buffers help reduce the risk because customers are prevented from ordering products low in stock. Buffers cut off the inventory available when they’re close to out of stock or not at all.
Better Visibility With Inventory Tracking
Do you ever wake up at 2 a.m. in a cold sweat and suddenly remember where that lost piece of inventory is? The inventory someone purchased, but then you had to cancel because you couldn’t actually find it? Yeah, you know the one.
It happens too often. But it doesn’t have to.
With inventory management software, users have complete visibility into the locations and quantities of their inventory. Inventory visibility allows for not only less cancelled orders, but less oversells, out of stocks, dead stock, etc. Sounds pretty good, right?
Your number one priority as a business owner should be to track inventory efficiently. And across locations and marketplace channels. An inventory management system can track inventory across multiple warehouse and sales channels.
Users can manage inventory across multiple channels with Quantity Syncs. Inventory quantities across marketplace listings are automatically synced so you never run out of stock on one listing and not the other.
All the inventory information, including product descriptions and quantities, are housed inside the software in one easy-to-find hub.
Quantity Syncs reduce the number of cancelled orders, especially when you’re building a multi-channel business. Listings are always accurate and on time. With inventory software, gone are the days of your eBay listing quantities not matching your Amazon listing quantities.
eCommerce retailers don’t have the time or money to waste on cancelled orders. Your mission is to build a brand, and the only way to get there is with a streamlined and intuitive inventory management system. Schedule a demo with SkuVault now to learn how to get started.