This article is contributed by Kenneth Chew from TradeGecko, an inventory management platform for online businesses.

So you have found a great product, put together an awesome business/marketing plan, and built a beautiful eCommerce store. It might seem like you have everything in place for success. Bar one: efficient inventory management.

What is Inventory Management?

So you might be asking yourself, what exactly is 'inventory management', and why is it so crucial to the success of your e-Commerce business?

Simply put, inventory management is the process of efficiently maintaining an optimal level of stocks, while also factoring in associated expenses such as orders, shipping and handling, and any other additional costs.

But that's not all-inventory management also takes into considerations re-purchasing decisions, asset management, inventory carrying costs, stock buffering, and even demand and price forecasting.

Why do you need proper inventory management?

The first thing any retail business needs is to understand that regardless of whether you're running a brick-and-mortar store or an e-Commerce store, your inventory (or stock) will typically nearly always be the most vital asset, the lifeblood of your business.

The reason for this is simple. You can have the best product in the world, the most beautiful web-store and the best customer service behind the scenes, but without stock to actually sell to customers-nothing else matters.

This is particularly important for small businesses (which many eCommerce stores start off as), where liquid capital is limited. Understanding and implementing appropriate inventory management techniques and software for your business can often be the crucial make-or-break element with a great impact of your profit.

When do I need proper inventory management systems in place?

All successful e-Commerce businesses share one common thread-they implement an efficient inventory management system from the get-go, and ensure proper inventory management ALL-THE-TIME.

Regardless of whether you're a newly launched one-man e-Commerce company run from your living room, or a massive international business with millions in revenue yearly; proper inventory management should never be seen as an unnecessary inconvenience, but instead as the crucial backbone of your operations.

How do you implement efficient inventory management?

There are a wide variety of inventory management tools, platforms and software available for your business-from speechless to legacy enterprise software to cloud-based SaaS (Software-as-a-Service) solutions available today.

Regardless of your choice, the goal of efficient inventory management remains the same, which is to help you effectively manage your business operations and make more accurate decisions based off accurate statistics, leading to the success of your business in the long-run.

No two businesses are exactly alike especially small businesses as they have specific sets of needs and functionalities required. With the wide range of inventory management solutions available, selecting the ideal software can often be a challenge.

The priority here, really, is to find the option which best fits YOUR business. For example, there's no point in shelling out a lot of money for expensive enterprise software before your small eCommerce business takes off; meanwhile, it also wouldn't be practical to stick to manually updated spreadsheets, for big businesses with hundreds of SKUs and tens of thousands of goods total in stock.

Who and what can help you with inventory management?

The first step in inventory management would probably be something small, like a spreadsheet, or even pen and paper. However, while certainly doable, this would require a lot of time and effort, making it an inefficient option-even without taking into consideration the risk of human error.

Another option is the traditional enterprise software. However, while its functionality is comprehensive, it is also quite expensive, particularly for a business that's only starting out.

Business owners can also opt for cloud-based SaaS solutions, which a significant number of businesses have adopted in the past few years. Fast, cost-efficient and scalable, SaaS solutions are rapidly changing and improving the way businesses are run. Particularly for inventory management, SaaS solutions are an ideal option, offering you an affordable way to kick-start your eCommerce business.

SaaS solutions provide you with strong, customisable functionalities that fit your business perfectly without breaking the bank-including the ability to automatically manage and update your inventory levels in real-time.

The top cloud-based inventory management platforms available today would also offers seamless integration with other SaaS platforms-from your e-Commerce platform like Shopify, to accounting, CRM or even solutions that help with demand forecasting.

Where do I start with inventory management?

Inventory management is a one-time task-it's an ongoing, round-the-clock responsibility. And due to the limitations of the older methods such as manual spreadsheets, inventory management has previously taken up a significant amount of time, effort and resources.

Cloud-based solutions, however have greatly automated the entire process, allowing business owners to have peace-of-mind updates and synchronisation across multiple channels and multiple stakeholders, all in real-time.

For example, your warehouse staff can be doing transfers between holding centers, your salesmen can be out closing deals, and your administrative staff can be doing the paperwork all at the same time-with your stocks and inventories updated live throughout the work day.

Efficient inventory management around the clock, across your workforce, is now a reality. No longer have to worry about the painful process of manual stock tallies with an effective inventory management system leading your eCommerce business to a long-term success.

For a start, check out our comprehensive but user-friendly cloud-based inventory management platform, TradeGecko. With a free 21 day trial (no credit card required), get going in minutes and see what a top inventory management platform can do for your business overnight!