Inventory Management: Stocking Up for the Season

Inventory management is one of the most important aspects of running a handmade business. It can be difficult to know how much inventory to stock up on, especially when you’re not sure what to expect in terms of sales.

However, if you can get your inventory management under control, you can save yourself a lot of time, money, and stress.

In this blog post, I’m going to share some tips on how to manage your inventory for the upcoming season. I’ll also provide some real-world examples of how to apply these tips to your own business.

Let’s get started!

Disclosure: some of the links below are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

Tip #1: Forecast Your Sales

The first step to inventory management is to forecast your sales for the upcoming season. This will help you determine how much inventory you need to stock up on. There are a number of factors to consider when forecasting your sales, including:

• Seasonality: Some products sell better during certain seasons. For example, you would expect to sell more winter hats and scarves in the winter.
• Trends: If there is a new trend that is popular in your target market, you may want to stock up on products that are related to that trend. Read more about finding trends here.
• Marketing efforts: Your marketing efforts can also impact your sales. If you are running a successful marketing campaign, you may see an increase in sales (which is a good thing!).

Once you have forecasted your sales, you can start to determine how much inventory you need to stock up on.

It is important to have a buffer of inventory, in case your sales are higher than expected. However, you don’t want to have too much inventory on hand, as this can tie up your cash flow.

As you gain experience, this part of the work will get easier.

Tip #2: Track Your Inventory

Once you have stocked up on inventory, it is important to track it carefully. This will help you avoid stockouts and overstocks. There are a number of ways to track your inventory, including:

• Spreadsheet: You can use a spreadsheet to track your inventory. This is a simple and affordable option.
• Inventory management software: There are a number of inventory management software programs available. These programs can be more complex and expensive than spreadsheets, but they can also be more efficient.
• Barcodes: You can use barcodes to track your inventory. This is a more accurate and efficient way to track inventory. This is good if you have a lot of different products that can be difficult to track.

Let’s say you are a handmade soap business owner. You use a spreadsheet to track your inventory. In your spreadsheet, you list each type of soap that you make, the quantity of that soap that you have on hand, and the location of that soap in your inventory. You also track your inventory as it comes in and goes out.

Also, you may want to separate your inventory for in person shows vs. online sales. 

If you sell one of a kind items, it will be especially important to track them so you can remove a piece from your catalog once it sells.

Tip #3: Review Your Inventory Regularly

It is important to review your inventory regularly. This will help you identify any problems with your inventory management. You should also review your inventory to see if you need to restock on any items.

It’s a good idea to do this at least weekly, and you may need to do it more or less often, depending on your sales volume. 

Example:

Let’s say you are a handmade candle business owner. You review your inventory every week. 

During your weekly review, you notice that you are running low on vanilla-scented candles. You immediately restock on vanilla-scented candles so that you don’t run out.

This regular inventory review will also help keep up with materials and supplies that you may need to order.

Tip #4: Sell Your Leftover Inventory

If you have leftover inventory at the end of the season, there are a number of things you can do to sell it. You can:

• Run a sale: You can run a sale on your leftover inventory. This is a great way to get rid of products that are not selling well. I love doing a sale during the first weeks of the new year, to make room for new pieces.
• Donate your inventory: You can donate your leftover inventory to a local charity. This is a great way to give back to the community.
• Recycle your inventory: If your products are made from materials that can be recycled, you can recycle them.

Additional Inventory Management Tips:

• Set realistic expectations. Don’t expect to be perfect at inventory management right away. It takes time to get the hang of it. Do the best you can and you’ll see it will get easier and better as you gain experience.
• Be flexible. Things don’t always go according to plan. Be prepared to adjust your inventory management strategy as needed.
• Don’t be afraid to ask for help. If you are struggling with inventory management, don’t be afraid to ask for help from a friend, family member, or business advisor.

Inventory management is an important aspect of running a handmade business. By following the tips in this blog post, you can improve your inventory management and save yourself time, money, and stress.

I hope these tips help you manage your inventory for the upcoming season! If you have any questions, please feel free to leave a comment below.

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