How To Manage Inventory During the Holiday Season

By Alayna Larson - Digital Marketer
Posted on September 27, 2023

While the holiday season is the most wonderful time of the year – it can also be the busiest! Retailers need to navigate inventory challenges to make the most of the holiday rush. Effective inventory management can increase customer satisfaction and maximize sales.

Examine Sales History and Trends

If you’re not sure where to start in terms of planning for the holiday rush, take a look at last year’s sales data and identify your best sellers. Look for any patterns or trends that could help you be better prepared for this year. It’s also important to keep an eye on social trends that are happening in your industry. Is there a fashion trend that’s coming back into style? Are videos and posts going viral using products similar to yours? Research your target demographic and be sure to take these trends into account.

Know Your Suppliers

Establish reorder points to help avoid stockouts. When inventory falls below a certain amount, then you know it’s time to reorder. Be aware of your supplier’s lead times when reordering. Don’t put all your trust into one supplier. Diversify your inventory and rely on multiple different suppliers.

Monitor Your Inventory

Consider investing in a software that allows you to track your inventory in real time. Doing so allows for quick adjustments where they’re needed. Be sure to regularly audit your inventory and identify any fluctuations.

Prepare For the Unexpected

The holiday season is sure to bring its fair share of complications. Make sure you have backup plans in place for any issues that may arise. Excess inventory? Consider bundling items together for a discounted price. Out of stock? Provide your customers with a pre-order option or notify them when the product is back in stock.

With these tactics in place, your business can thrive and make the most of this holiday season!