A strong appeal of selling on eBay and elsewhere online is the low cost and
flexibility of operating in a virtual world. But if you sell merchandise,
whether or not you have a brick-and-mortar retail operation, you need a place to
store your merchandise and you'll need to track your inventory.
Public (commercial) storage. A viable option to your own commercial
space is a public warehouse. Public warehousing companies can essentially
function as your shipping department. In addition to storage, their services
include pick and pack operations, packaging, and labeling, and they will arrange
for shipping on the carrier you specify. Public warehousing prices are based on
usage--you only pay for the space and labor you use. Contract warehousing is
similar in terms of services, but you pay fees whether or not you use space and
services. Find public warehouse companies in your local telephone directory or
through an internet search.
Remember that the more storage space you have, the easier it is to purchase
off-season inventory that you hold until the time is right to sell. However,
always remember to calculate storage costs into your cost of selling those
items.
Whatever space you have designated for storage needs to be properly equipped
and functional. You'll likely need sturdy shelves for boxes or bins, rods for
hanging items, and a table to use for packing and labeling. Assign specific
areas for items "to be listed," "listed," "sold, waiting for payment," and
"ready to pack and ship."
Your storage facility's environment should be appropriate for your products.
If your merchandise is temperature sensitive, make sure you use an
air-conditioned facility. It should be dry, free of insects and other pests, and
free of household odors such as cigarette smoke and pets.
Tracking Your Inventory
Do you know how Sam Walton became the world's
most successful retailer? It wasn't because of a clever name, snazzy logo,
creative ads, sharp frontline people, or even low prices--it was because of the
company's superior inventory management. Business students in colleges and
universities around the world study Wal-Mart's system, and smart companies copy it. Your own
inventory management system doesn't have to be as high-tech or complex, but it
does have to be as serious.
At any given moment, you need to know what you have on hand, what you've
purchased that's on the way, what you need to buy, what's up for auction, what's
available in your eBay store and on your website, what's been sold, and what's
been shipped.
For small, low-volume sellers, a simple index card system or spreadsheet will
be sufficient. Serious eBay sellers track this information electronically. Most
auction management software packages include inventory
tracking.
In addition to keeping track of the information, you also need to consider
the physical flow of your inventory. At eBay drop-off franchise QuikDrop,
items move systematically through the store. After an item is accepted at the
front counter, it goes to the photo area. Once it's photographed and the listing
is written, it's moved to the area designated for items currently up for
auction. When the auction closes, it's moved to the sold rack (or to the
return-to-customer area if it didn't sell) until payment is received; then it
goes to the shipping rack for packing and shipping.
Set up a system that works for the type of merchandise you're selling and
that will allow you to be as efficient as possible.
Your inventory tracking system should tell you what's selling well--and what
isn't. When items have overstayed their welcome in your warehouse, be creative
about moving them out, even if you take a loss. For example, if Kathy Logan
(eBay User ID: rosie_peachstate), who sells craft supply products, has a product
that isn't selling well, she will make something with it, and include a photo of
that item in her auction listing to give potential buyers a better idea of what
they can do with it. You can also put together groups of items and sell them in
a single lot with a low starting bid, or offer a free bonus to the winning
bidder. If you can't manage to sell it, donate it to charity--do whatever you
have to do to free up your storage space and your cash for more products, even
if it sometimes means taking a loss.
