Success: Turning loss to profit in 3 months – inventory management

Managing inventory is an essential component of a successful e-commerce enterprise. Inventory management is defined as the set of activities that are used for making sure that the items needed for the business to run are always available at the right levels. A business should not have too much available for purchase nor too little. 


This is not as easy as it sounds as the tendency of sellers is to try and have as much product as possible so that you can sell as much as possible, however, this is not always the case. There are some things that need to be considered like overspending, overstocking and the cost of physically storing stock that is not selling. Effective inventory control is all about maintaining the right balance between customer satisfaction and sales. E-commerce businesses need enough high demand stock items available to meet customer orders, but they also need to avoid these unnecessary and expensive problems.


Efficient inventory management is extremely important for any business and crucial for those businesses that function online. Running out of stock can seriously damage an e-commerce business and result in driving away customers if they cannot deliver on what has been promised, especially with there being so much competition and the prevalence of customers publishing immediate feedback online. There is also the potential of sellers being worn out by trying to keep a hand of too many items in their stock and trying to increase the amount of sales generated across the board instead of focusing on key products. An online sales management service can assist in getting this balance right.


This week’s success story highlights the importance of correct inventory management and the needs to be strategic with product choice.

Our client, who managed his own sales operations on Amazon. had experienced a loss of £40 000 in a single year with a transaction volume of over £300 00. At London Bridge Project we started a process of restructuring to correctly position our customer in the market. We conducted sales, procurement, competition, pricing and advertising analysis. One of the most important outcomes from this analysis was the need to focus on inventory management; looking at the supply and storage process.

By reducing the inventory from 300 to 60 products we ensured that the correct products were the focus of the business and this resulted in the optimisation of profitability. At the end of the third month our client reached real profitability. 


How the London Bridge Project Can Help to Deliver Success 

The London Bridge Project (LBP) is a leading sales and management consulting firm that provides both amazon consulting services and amazon sales support for businesses looking to grow exponentially within the biggest marketplace in the world. We offer a complete end-to-end service for Amazon based businesses, which includes providing valuable insights into Amazon sales data and a pipeline of under-explored opportunities within your niche.

If you would like to learn more about how the London Bridge Project can help your online business, make sure to contact a member of our team today to discuss your requirements.