Megaventory Blog - Online Inventory Management Software, Order fulfillment and Control System
This is the company blog for megaventory, an online software that helps small businesses that buy, sell and manufacture physical products to manage sales, purchasing, manufacturing and inventory. We blog about new features and updates but also about enterprise software, small businesses, cloud computing and the industry in general.

Thursday, July 28, 2016

How to survive as an independent retailer

Following the success of our other two posts on the importance of the right retail software and the top online tools and services, we decided to give a final round to our series of retail articles.

In this article, we asked successful retailers and experts what are the challenges an independent retailer has and what can they do to survive against the big box chains.

Emphasize quality, not quantity

"By introducing our very own in-house production team, we were able to massively cut our costs; this meant we could pass the savings onto our customers and lower our prices, attracting much more business than many of our competitors on similar levels to us. We employ seamstresses who have decades of experience, so when people order from us they know that they will receive a handmade, quality item– a USP that many of the larger companies can’t compete with."

Darren Green, Roman Blinds Direct

"We are competing with a variety of large businesses that operate across the country, so rather than try to provide the same selection of products as they do, we decided to try and provide a 'specialist service' to help us stand out. Customers know that although they might get a wider selection of products at our competitors’ stores, they will get the benefit of our expert knowledge, if they visit us. I think it's important to wear your heart on your sleeve and let people know that you are an independent retailer. We find that people are often willing to pay slightly more and deal with slightly less choice if they know that they'll get expert help, as well as the satisfaction of helping a local business."

Sam Williamson, Floor Heating Direct

Pamper customers with perks

"We would have no business without our customers and we know it. Because of this, we do our best to ensure their complete happiness in both the purchase itself and the return policy. For 30 days, with a receipt, we have a no questions asked policy and we will refund their money with no problem. Without a receipt it's product exchange. After 30 days, with a receipt, we will exchange for the same product or another scent, or give them store credit. 

Personal care products are just that, personal, so we want to make sure the entire experience is pampering and special.  We have a loyalty program for repeat customers. We have a refill program so that our customers can save 40% if they bring their jars back. More importantly, we treat them as the jewels in our crown that they are!"

Roberta Perry, Scrubz Body Scrub, Inc

Image Source: Flickr, Michele Ursino

Keep good stock vendor relations

"To get better prices from suppliers and stay competitive, our business lends itself well to working with small to medium sized vendors so that we can be a bigger fish in a smaller pond. We have been working with some of the same vendors since 2006 and have found that long-term, strong relationships often help when it's time to negotiate prices. We also make a concentrated effort to ensure a large percentage of our inventory is being ordered from a few key vendors. Ordering a large number of styles in smaller quantities is our best way to try and measure up to chain retailers buying large quantities of a few styles. And above everything else, we make sure we're kind, reasonable, and respectful during each interaction. 

Angie Stocklin, One Click Ventures

"As a business we must speak a lot to the suppliers to understand their quote and using what ratio they are quoting prices and how far it go well in market. Communicating things between each other will be the first best idea to get the negotiation part done well and get better prices from your suppliers. To stay competitive we must sell the products which are highly demanded and consumer needed. Hence go highly on deep search on finding vendors with products our consumers need." 

Billie Jean Bateson, Amazing Wristbands

Be tight with inventory management

"As the Inventory and Merchandise Manager, my job is to make sure we order just the right amount of inventory and then sell it quickly in order to maintain the overall health of our balance sheet. Having the right amount of product at the right time is often difficult to achieve on a consistent basis for even the best-run businesses. However, building a contingency plan of what you'll do when you sell more or less than expected is easy to do. Spending a few minutes mapping out a couple of scenarios with your team and suppliers ahead of time can save countless hours of work and takes what could be an overly emotional reaction in the moment off the table because you already know what to do when product starts to sell quickly or never takes off. This one simple idea has kept inventory in a healthy state over the years."

Erik Flugstad, Tanga

"As an independent retailer one has to know their numbers and run a very tight ship. There is literally no room for inventory mistakes. Especially if your space is limited and every inch of storage matters. I understand that we lose money on some inventory but having grown up in retail I know that my store has to look fresh and interesting all the time and I make sure it does daily. That usually means rotating my inventory regularly and that could be a problem when you need to operate in a very tight space. With higher priced items I prefer to keep lower stock and push for diversity."

Michelle van der Heijden, MUSH

As for managing a good quantity of stock, data is central. We are lucky to have a business intelligence analyst in our team, and he manages all of the data flowing into and out of our online brands. We use this information to look at quantities on hand and sales per item over the last 100 days, and compare those numbers to future sales forecasts. Our forecasts are solid, but they are never perfect, so our merchandising team monitors our in-stock rate for all three of our brands, on an inventory class level. Our goal is to catch all low-stock items before the run out of stock, but we allow ourselves reasonable wiggle room to account for things like delays in customs."

Angie Stocklin, One Click Ventures

Use the right tools and services

"Being an independent retailer comes with a list of challenges especially in the stock department. I learned the hard way doing it manually by hand is a very poor way to keep an updated list of all of my products. In order to stay competitive against big box retailers, you must have at least the basics of keeping your inventory updated. That is why I started using an inventory platform that lets helps me organize my inventory and monitor all of my products. I advise all small business owners to start using an inventory service or platform because not only it will help you keep an accurate report of your inventory, but it will simplify the return process for your customers and help handle your sales in a very efficient manner. 

It's important to select a pretty well known or reputable inventory service because they will provide top notch customer support and the dashboard will be easy to use. Not only that your data will be protected and secured. Remember the point of using an inventory platform is to increase your productivity, organize your inventory and free up your time to focus on other important aspects of your business. Technology has evened the playing field if you learn to use it to your advantage. Don't skimp out on a cheap inventory service find one that fits your needs and you will be able to compete with well known retailers."

LisaChu, Black n Bianco

"One of the biggest challenges that smaller retailers face is that their transportation and importing costs can be higher than larger retailers that benefit from larger volumes. A transportation company that works to bring together retailers that are importing smaller loads from overseas and work to consolidate those shipments into larger collective shipments can help to lower the overall cost for all those who consolidate."

Randy Guidry, Averitt Express

Have backup suppliers

"The Small Business Administration says that 40 to 60 percent of businesses don't survive disasters. The reasons why are complex, but one potential reason is that they don’t have a backup plan in place for their suppliers. Remember: disasters can strike your business and your suppliers. Even if you haven’t been affected by a disaster, your suppliers could be suffering outages, especially if they’re in a different part of the country. That’s why it’s important to have alternate suppliers and vendors you can contact in a pinch."

Ted Devine, Insureon

In conclusion

Being an independent retailer in a globalized market is hard. Customers are constantly looking for the lowest prize and big box chains can't be beaten at this. Nevertheless, independent retailers can make a great difference by providing high quality and unique products, something big chains can't do. Furthermore, by implementing the right tools and focusing on solid vendor relations, retailers can make processes more efficient and use their time and money in other parts of their business.

Feel free to share your ideas in the comment section below. And if you liked this post, don’t forget to share it on social media!

Friday, July 22, 2016

9 powerful tools for best retail results

It is Independent Retailer Month and we will continue our postings on retailer tips, to help you get the most out of your business.

In this article, we asked successful professionals in retail to share their top online tools that they use daily and can't live without. Many are well-known tools, but there are some more obscure suggestions that might be exactly what you needed.

Prevent lost sales and cart abandonment

"We use Receiptful to manage our receipts, customer feedback, cart abandonment, and remarketing. This tool allows us to send custom discount codes to customers and follow-up emails in designated timeframes. Receiptful has generated us almost $10K (USD) in revenue from follow-up emails (idle customers, 90 days after purchase, and unused coupon reminders)! Because of Receiptful, our store has a 5% cart abandonment recovery rate which has generated almost $6000 in sales."
Isaac Cohen, JNCO 

"By deploying address verification we discovered that not only had the solution streamlined our checkout process by making it much faster but conversion rate metrics indicated a staggering 40% increase. Admittedly we had made a series of enhancements to our checkout process but I personally feel that the introduction of PCA Predict’s address verification tool was the main reason for the increases in conversions reflecting significant improvements in profit margin. Address verification reduced cart abandonments as well as completely tightening up the postal delivery process mitigating shipment failure. 

The cost of redelivering the returned orders resulted in huge postal charges as well as the valuable admin time spent in rectifying the errors. In addition, there are more unquantifiable negative impacts that delays in customer deliveries cause such as reputational damage. After all, customers that have a bad experience are unlikely to recommend Candy Club to friends and family. We really got a speedy ROI as in the first month of the deployment of PCA Predict’s addressing solution it’s actually paid for itself by saving us literally thousands of dollars. On top of that, we’ve significantly improved customer user experience."
Andy Moeck, Candy Club

Easily check out competitors' prices and offers

"We highly recommend Intelligence Node as a tool for retailers. Its multilingual feature provides us with a centralized view of competitors in a single language accurately, enabling us to make day-to-day pricing decisions and better plan overall strategy. Gaining real-time, accurate pricing and merchandising intelligence no matter the geography is a major benefit of Intelligence Node’s platform, especially as country boundaries disappear with the rise of global e-retail."

Amit Keswani, MAP

Combine analytics for advertising

"There are 3 online tools every retailer should be using to make their business more efficient. An online analytics package - Google Analytics is great. Make sure you're using the custom dashboards and automated reports - so the right information is available everytime you login, and gets sent to your inbox regularly too. Supermetrics can take this to a whole extra level! But automatically pulling data in from both analytics and your marketing activity (eg Adwords) to create all the weekly and monthly results you need. Time saved on creating reports is time you can spend improving your marketing. An online team management tool like Trello or Asana (mfavourite). It's a great way to manage the team, make sure everything happens, and really speeds up progress because everyone has more time to spend doing and less time to spend chasing the rest of the team."

Chloe Thomas, eCommerce MasterPlan 

Retarget your advertising through Facebook

"This is more of a strategy than a tool, but we've seen a lot of success with our retail clients who use this technique. Many retail stores have an email list of customers. You can take that list and upload it to Facebook, and Facebook will match up those emails with actual Facebook profiles. This is incredibly helpful for re-targeting existing customers with new products or promotions, but you can also create lookalike audiences. Facebook will take that customer list of profiles and then create a whole new list consisting of Facebook users who have incredibly similar interests, demographics and behaviors, so you can target a much broader audience who, theoretically, is similar to your customers."

Andrew Choco, Directive Consulting

Schedule your employee's shifts hassle-free

Last but not least, we have two solutions to schedule your shifts, effortlesy. "Wheniwork is the scheduling program I prefer because it is the most user friendly of online options" says Pamela Barsky, owner of the homonymous chain let stores. "It allows me to create schedules and communicate them to my employees without multiple emails back and forth". 

Another more obscure yet interesting solution is RotaCloud, which is an online employee scheduling platform to plan your shifts and track working hours. "Using iOS and Android apps, employees can see their upcoming shifts wherever they are, so long as they have an internet connection" explains James Lintern, Co-Founder of RotaCloud. "If they need to request time off, this only takes a few clicks and changes are instantly visible. Whenever new shifts are scheduled, any affected employees are automatically notified by email, SMS or push so now there are no excuses for forgetting a shift or turning up at the wrong time! You can instantly generate a comprehensive report looking at any of the data in your account, making it easy to spot trends and optimize your schedule. People are your most expensive resource, so if you're not scheduling effectively, you're throwing money on the fire!"

To sum this up, online tools are your great ally in retail business. They can help automate processes and save time and money, both precious when working in a globalized market.

Feel free to share your favorite online tools in the comment section below. And if you liked this post, don’t forget to share it on social media!

Friday, July 15, 2016

How important is the right software in retail business

It is Independent Retailer Month and we are going to dedicate July’s posting on helping you to get the most out of your retail business.

In this article, we want to highlight the importance of using a software solution in your retail business, and most importantly implementing the right one. Therefore, we asked the opinion of the best; three experts from leading business software reviews sites shared their wisdom and experience.

Differentiate your business

You might think that when it comes to competing with large retail chains you can’t win because you cannot afford the lower prices, but there are effective ways to differentiate your business and win clients. “Putting the consumer at the center of your sales process and helping to shape their shopping journey through personalized customer service and better informed store associates can help your business compete against large retail chains”, says Karen McCandless, researcher and editor at GetApp, a site that helps businesses compare sales management software. “This is where the right business software is crucial. Almost 78% of respondents in a recent survey have seen an increase in customer satisfaction through using sales software. The right software gathers all information in one place, which can then be accessed on the go. This can decrease churn, provide better customer lifetime value, and allow you to respond to customers anytime, anywhere in a personalized manner”.

Implement a POS system

One of the most important software for retailers is definitely a POS system. “The capabilities, affordability and ease-of-use of today’s retail point of sale (POS) systems leaves independent retailers with no excuse to operate without one,” says Justin Guinn of Software Advice, a retail and online inventory management reviews company. “Yet, 64% of single-store retailers we consult don’t have a POS in place. It’s unheard of considering the operational benefits enabled by features available in most all POS systems. Most important amongst the five primary POS features are sales reporting & analytics and inventory management, which are requested by 76% and 74% of POS buyers we consult, respectively.”

Do your research first

On the importance of a POS system agrees Cara Wood, retail technology specialist at Capterra. "As a small retailer, finding the right software is crucial”, comments Cara. “These days, you really can't run a store without POS software. Stores that only take cash and run on a glorified calculator to make sales just don't stay in business. What's even more important for a small retailer is finding the right software on the first try, because you don't have the funds to bounce around between solutions. So make sure to do your research deeply.”

To sum this up, the right software solution is the tool to survive in a highly competitive market. A retailer should take his time to network with a variety of software vendors before selecting a solution and remember not to let themselves get carried away by the many features a software app offers which might not actually be needed. Nevertheless, picking the best isn’t always possible, especially if you don’t have a long experience in the field. In this case, cloud-based software might be helpful, as you will not need to invest in expensive hardware upgrades, making your budget suffer. At the same time, most of the vendors offer a monthly subscription that you can cancel at anytime. The possibilities are many.

Feel free to share your thoughts in the comment section below. And if you liked this post, don’t forget to share it on social media.