Magento is one of the best open-source eCommerce platforms for running online stores. Nowadays, it has grown in popularity as the most popular eCommerce platform, providing online businesses with a flexible shopping cart system, content management, and store functionality. Among all the features, inventory management is considered the most important one that can determine an online business’s success. This article will show you how to manage inventory efficiently on Magento using POS software.
The very first step to use POS software to manage inventory on Magento is finding the matching POS with this platform. There are many excellent POS software providers out there but you can not choose one without consideration. It is necessary to find a solution that can easily integrate with the Magento platform and Magento inventory management features. Some solutions are designed specifically for the Magento platform such as Magestore’s point of sale, MicroBiz, or Ebizmarts. Because they are all Magento-native solutions, so you’ll have fewer headaches and workarounds when it comes to setting up and administering your store. Besides, all data from both channels will be synced in real-time to a single centralized system. As a result, both employees and customers will have a consistent online-to-offline experience.
The next step is trying to integrate POS software with your Magento store. Some POS software like the ones mentioned above offer direct integration to the Magento store. So you don’t have to worry about how to connect them with your online stores. However, if you already had an existing POS software, you can talk to POS providers to find a way to connect your store with the POS software or find a third-party integration. When you can integrate the POS with your store, all data and inventory can be synchronized and managed in one single system. Therefore, you can have a better picture of your inventory management and find ways to improve it.
By using POS software, you can recognize which items are sold quickly and which items are not. From that, you can organize your inventory into priority groups that will help you figure out which things you need to order more of and more regularly, as well as which are critical to your business but maybe more expensive and take longer to move. Experts recommend categorizing your inventory into three categories: A, B, and C. The A category consists of higher-ticket things that you will need less of. Low-cost items with a high turnover rate fall into the C category. The B group consists of things that are modestly priced and move out the door slower than C items but faster than A items.
With POS software, you can keep track of the product details for each item in your Magento inventory management system including all the information such as SKUs, barcode data, suppliers, countries of origin, and lot numbers. Therefore, you will always have correct and most updated product information in your online store. You might also want to keep track of the pricing of each item over time so you’re aware of issues like scarcity and seasonality that can affect the price.
Integration between POS software and your Magento store allows you to keep track of sales at any moment since all sale data from your online store will be automatically updated in the system. And it is not just how much you sell during a day, a week, or a month. It can show you which products are sold faster or when they become obsolete, which time of a week that you can sell certain things and which products can be sold together. To keep your inventory under control, you must understand not only your sales totals but also the bigger picture of how goods sell.
“Perpetual” inventory management system depends on POS software to automatically modify inventory counts after each transaction. Beyond the cost of items sold, acquisitions, and inventory on hand, the POS system’s inventory ledgers contain a variety of information.
From these data, retailers can know when, where, and how much each item is sold for, as well as information about the buyer that may be collected and saved in a customer relationship management system.
In general, effective inventory management is essential for any eCommerce business’s success. It can help to improve the client experience by preventing stock shortages. Besides, it also aids in improving cash flow and optimizing fulfillment to guarantee that everything is properly placed and kept and that orders can be packed and dispatched to customers in the shortest period. There are many ways to improve inventory management on an eCommerce store but using POS is the most simple way that you may think. We hope that Magento merchants can find some useful tips from this article to manage their inventory effectively by using POS software.
Interesting Related Article: “The Importance of Inventory Management for Retailers“