Managing business inventory is one of the essential parts of your business. With “Try Before You Buy” programs, more customers order more products and the inversion rate increases. So, what could happen with your inventory? Do you think “Try Before You Buy” will hurt the process or make it more efficient?
In this article on Stage Marketplace, we discuss different types of business inventory and how to improve their efficiency with “Try Before You Buy”.
What is an inventory?
Let’s start with explaining the term “retailer’s inventory”. When your store has the right products in the right quantity, you are managing your business inventory. Business owners need to understand what business inventory means; the more you know about the inventory management process, the better.
The primary purpose of a business inventory is to provide goods and services how and when they are expected.
The 3 types of inventories
Generally, business inventory types can be grouped into 3 classifications:
- Raw materials inventory: these consist of items that are processed to make the products.
- Work-in-process inventory: this is a list of raw materials that have been sent for processing but not approved as finished goods.
- Finished goods inventory: this is the final list of items that are ready to go into the market.
What’s the impact of inventory in your businesses?
Business inventory might come with some risks that can negatively impact your business.
. Therefore, businesses must invest time and resources into reducing the risks associated with inventory issues. They should try to keep customer satisfaction and profitability as a goal to reach with creative solutions.
How do you increase inventory efficiency? “Try Before You Buy” is the solution
When you activate the Stage Marketplace channel on Shopify you can offer a 7-days free trial for all products to your customers. Do you think this will increase your business inventory?
In fact, with our “Try Before You Buy” business solution, inventory comes back faster. And the unwanted items return process speeds up. Besides, this program reduces uncertainly in the customer’s decision.
How to track and manage inventory with “Try Before You Buy”?
Imagine your store has a return policy that lets the shoppers send back products after 10-days. Now the store activates our program (TBYB) and customers are expected to return items after only 7-days. Unwanted products will be back in your warehouse faster.
TBYB also helps you manage your inventory by accelerating the feedback cycle. For example, you’ll find out what products perform better than others, and you can use that information to plan what you will re-stock. Planning ahead removes the guesswork out of the business inventory buying process.
“Try Before You Buy” also accelerates your sales and the average number of products ordered. This is why we give each store an automated dashboard to track and control their business inventory. When you join Stage Marketplace you can optimize this process and get accurate information that will help you improve your inventory management.