The Basics of In retail, a large part of your business revolves around inventory. If your inventory is selling well, everything is fine. If it’s not, it means you have some issues to address.
The good news is that these problems can be avoided.
A proper approach to south africa telegram data organizing your inventory can help you boost your sales and make it easier to identify products that are in high demand and need to be restocked, and those that aren’t selling at full price and need to be liquidated.
Discover the principles of inventory classification below .
1. Organize your inventory into unique categories The Basics of
What differentiates one product from another?
Let’s say you’re a fashion and clothing retailer. Rather than categorizing all your t-shirts into a single generic category like “t-shirts,” it’s better to categorize them based on their unique characteristics, such as:
- Size
- Color
- Cut
- Fabric
- Brand
Why use unique categories for your inventory?
Categorizing similar products based on their unique characteristics in your POS system allows you to The use customer reviews and testimonials in abandoned cart emails Basics of accurately identify the types of t-shirts that sell well. You can then refine your inventory classification using ABC-style classification (more on this later).
Unique categories provide valuable support when it comes to replenishing inventory. Instead of having to analyze countless data points, you can easily filter your sales reports and see exactly which types of T-shirts are selling best. Which sizes, colors, cuts, and brands sold the most? Armed with this valuable information, you can maximize the profitability of your next replenishment order.
Idea ?
You can create matrices for products with different sizes, colors, cuts, and fabrics. Click here to learn how to create product matrices in the Lightspeed Retail app .
2. Classify your stocks according to their profitability
In addition to creating unique canada data categories to organize your inventory, you may also want to consider using ABC inventory classification, which indicates that not all your inventory items have the same value.
According to the ABC classification , you should group products according to their estimated importance to your business. For most businesses, this classification looks like this