Ecommerce Inventory and Stocking: 10 Tips for Pet Business Owners • AxiomQ

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December 10, 2024 Business

Many pet businesses start as passion projects, usually to bring great ideas to local markets. Whether it’s wholesome pet foods that provide better nutritional profiles than commercial brands or secure martingale collars that won’t choke dogs, pet business entrepreneurs have an agenda to make life better for pets and their humans.

Inevitably, however, reality sinks in. Not only do pet business owners have to manage all the typical store operations, but they also must face the serious inventory management challenges of the pet goods sector. A growing number of pet owners want pet shops to provide “all-in-one” ecommerce experiences, with products to meet every conceivable pet need. They also expect their go-to items like food, treats, and grooming supplies to always be in stock. This necessarily means that pet businesses must have a seriously diverse and efficient inventory if they want to attract and retain customers.

The inventory challenges also don’t end there. Many pet products, such as food and pharmaceuticals, have expiration dates. Stores must be able to track these to avoid the risk of selling bad stocks to customers. Seasonal demands for holiday-themed toys or outdoor pet gear serve to make inventory management even more difficult. Add storage and supply chain limitations, and sometimes it’s a wonder why so many people choose to be in this line of business.

Still, as daunting as inventory management for a pet ecommerce business can be, it is a well-trod challenge that many have successfully done in the past. Here are some tried-and-true tips that will help ramp up your inventory’s efficiency:

1. Invest in Inventory Management Software

In this day and age, there’s no excuse for relying on pen-and-paper or Excel for managing massive inventories. Cloud-based inventory management systems are more affordable than ever, and you’ll find plenty of options that will automatically track stock levels and manage your reordering needs. Look for compatibility with your point-of-sale system as well as features tailored to e-commerce so that you can effortlessly reconcile stock levels across all your sales channels.

2. Conduct Regular Audits

Schedule routine inventory checks to ensure the actual stock matches your records. This helps you catch discrepancies caused by errors, theft, or damage, preventing unexpected stockouts.

3. Categorize and Track Your Perishables

Perishable items are a bane of pet store inventory management because there’s usually just so much stuff to keep track of. Prioritize developing a streamlined storage and tracking system so that you can offer discounts on soon-to-expire items to minimize your losses. Rotate stock using the first-in, first-out (FIFO) method to minimize waste and potential harm to your customers’ pets.

4. Keep Safety Stock for Essentials

Whether through data analytics or hands-on experience, you will eventually know which products have the most demand. For these, you may want to maintain a small buffer stock to ensure continuous availability during unexpected supply chain disruptions.

5. Maintain Strong Supplier Relationships

You will also have a better chance of avoiding some disruptions if you build reliable partnerships with your suppliers. Paying them on time and being more communicative will help you form the impression of a good customer, potentially giving you priority in periods of low supply.

6. Use Demand Forecasting Methods to Order Optimal Amounts

Historical sales data can also help you spot trends and predict future demand. This is especially useful for ordering the correct quantities of seasonal products like pet costumes.

7. Offer Pre-Orders for High-Demand Products

For popular or limited-edition items, consider setting up a pre-order system to gauge real demand. This will allow you to order more precise amounts of stock and reduce your chances of overstocking or disappointing customers.

8. Find Optimal Storage Solutions

Many pet businesses have such diverse stocks that the owners have no idea where anything is anymore, increasing the risk of product spoilage and denying staff the opportunity to stock things that sell. Avoid this pitfall by investing in durable shelving, bins, and racks to maximize your storage and improve organization for your inventory.

9. Keep Track of Emerging Pet Trends

New trends in breed preferences, diets, and accessories are coming up all the time. While you don’t want to be following every single trend, you should make an effort to stock items that meet your customers’ evolving needs.

10. Offer Membership Discounts or Subscription Services

These two strategies can help stabilize demand for essential items, making your inventory planning easier. They can also help you achieve a higher baseline cash flow, which can in turn make your business more sustainable to run.

11. Find Ways to Reduce Deadstock

Whenever possible, discount or bundle slow-moving items to clear space for higher-demand products. This will allow you to attract bargain-hunting customers while still catering to broader, more profitable market demands.

Take Charge of Your Pet Store’s Ecommerce Inventory

As any serial entrepreneur will tell you, “inventory is money.” Managing e-commerce inventory efficiently is just good business, regardless of what industry you’re in. It will take some time to get these ideas down but, once you do, you’ll be able to take on common inventory challenges with ease and set your pet business up for success. Start applying these strategies to transform your pet retail store into a sustainable and competitive ecommerce business.