Seasonal products – how to deal with fluctuations in orders?
Unfortunately, in the e-commerce industry, there is a seasonality of products. This mainly applies to entrepreneurs who decide to sell goods that are popular only in certain periods (so-called seasonal products), e.g. just before Easter or Christmas. Do you want to learn how to optimize the operation of your online store to reduce the risk of financial losses in the off-season? Check out our guide!
First of all – stocks!
Stocking the right amount of goods in the warehouse is a simple way to optimize supply chains and at the same time ensure optimal profits both in peak demand and in periods of decline in sales. Inventory plays a key role, especially when it comes to production, sales and logistics processes. What does it mean? Well, the better you adjust the size of the stock of goods, the better your chances of getting out of the period of falling interest in seasonal products unscathed.
When it comes to the basic principles of warehousing goods, we distinguish several types of inventory:
- minimum inventory – this method of operation consists in the fact that after exceeding the minimum value of the inventory, you replenish it to the maximum value,
- maximum stock – here, stocks are replenished only after verifying the current stock levels in a given period, so as to ensure the greatest possible availability of the goods sold at all times,
- safe stock – it is one that will be sufficient to meet the supply cycle at the beginning of the season, when interest in products is gradually increasing,
- information stock – in this case, stocks are accumulated in accordance with the sales forecasts in given periods.
The task of optimizing the online store’s inventory is to reduce the level of costs resulting from the storage of items for sale. To be sure that the supply chain will be maintained at an appropriate level while maintaining a minimum of costs, it is worth choosing the help of professionals in the field of logistics design.
Seasonality of products – how to optimize processes and minimize losses by offering seasonal products?
The most effective option to minimize the cost of storing goods outside their sales season is the optimization of e-commerce processes. For this purpose, it is worth using the services of an external company dealing with such issues as:
- optimization of processes related to the purchase, production and import of goods,
- supervision of production processes,
- full advice on cost optimization,
- supplier market verification,
- customer pattern design,
- storage and optimization of stocks.
By using the support of an external company offering solutions for e-commerce business in the event of seasonality of products, you can really gain a lot. In this way: you will reduce costs, establish international cooperation with contractors from around the world and get rid of responsibility for the purchasing process.
The specificity of the seasonal industry – what is it about?
Want to learn more about how seasonal products impact your bottom line? Well, the company earns more money only during periods of increased interest in goods. In other situations, the e-commerce company must optimize its activities so as not to generate a loss outside the period of seasonality and interest in the goods. There are several types of seasonality on the market:
- High season – most often associated with the season or e.g. holiday season.
- Small season – includes holidays and cyclical events taking place every year.
- Momentary trends – these are simply spontaneously emerging interest in a product, e.g. as a result of some sudden cultural event.
It is also worth noting that the seasonality of products changes along with how the demand for given products and services and the interest in the offer of potential consumers changes. What’s more, seasonal products can be promoted a bit better through properly defined marketing activities.
Nevertheless, every e-commerce company in the field of seasonal products should invest in process optimization – preferably with the support of a proven service provider.
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