The global eCommerce fashion industry is growing every day and is expected to reach a value of over 1.2 trillion US dollars by 2027, according to Statista. As the industry keeps expanding, so does the competition, which makes inventory challenges more likely. That’s why, in this article, we will discuss problems eCommerce apparel brands often face during their inventory management process and possible solutions they can benefit from. Let’s start! 💫

Why is Inventory Management for Fashion & Apparel Brands Important?

Managing inventory & delivering orders properly is the first and most crucial step to meet customer expectations. But in the apparel industry, so many factors affect the efficiency of this process. Especially if you have a growing apparel business with a wide variety of products, order fulfillment becomes more challenging. Currently, there are 526,399 live Shopify stores in the apparel category. This means competition also plays an important role in addition to delivering the right product to the right customer at the right time. Therefore, effectively managing your inventory from multiple angles is crucial for customer satisfaction and staying competitive. Considering how crucial the efficiency of this process is, the damage from any encountered problems can be significant. That's why it's vital to determine these issues accurately and uncover their solutions. So, let's dive in!

Common Inventory Challenges Online Apparel Brands Face

Managing an online apparel brand isn't just about selling clothes; it also means managing apparel inventory. 👗 Behind the scenes, there are always constantly changing trends and unstable customer demand. 🛍️ At any moment when your inventory doesn't meet your customer's expectations, you may experience a new problem. We've compiled the problems that online clothing brands most frequently experience and possible solutions for you.

Stockout 📦

Stockout might be a bigger problem than you imagine. 😶 According to a survey, 26% of customers buy from another brand when their favorite product is out of stock. That means out of stock issues may result in lost sales revenue for your store. But don’t worry; you can solve this issue in minutes.

• When the problem is out of stock, the first thing to do is find the reason behind it. You should benefit from demand forecasting, advanced reports, and automatic restocking to prevent stockout. But it's the fashion industry! You never know what happens next. 🤷‍♂️ For times your store is unexpectedly out of stock, you can accept backorders! With backorder, you can keep earning revenue. How? When a customer places a backorder, they reserve the item, and once it becomes available again, you fulfill their order and generate revenue without losing revenue.

📌 Want to learn more about backorders? Read Ultimate Guide: Backorder & Preorders & Backorder as a Cash Flow Generator.

Seasonality ☔

Seasonality is a significant challenge for apparel businesses due to the fluctuating demand throughout the year. Apparel brands must properly and accurately forecast demand for various seasons, holidays, and trends. 👓👢👗 However, getting the inventory numbers right is crucial because the apparel products produced for one season may not be in demand for the next season. This imbalance between supply and demand can lead to excess inventory 📦, and accordingly, extra costs 💸 and potential losses for the apparel businesses. When you don't manage seasonal demand changes effectively for your eCommerce clothing store, it can mess up your cash flow, leave you with unsold inventory, and make it tricky to invest in new styles or keep up with trends. So, nailing the seasonal demand is key for making money and staying ahead in the fashion game.

• You can start making more realistic plans for your eCommerce store to overcome seasonality challenges. 📆 Leveraging sales forecasting provides many insightful details for you to determine your future strategies. With an efficient inventory management app, you can make better long-term supply & demand plans. You can use the new enhanced navigation and visualization features of Fabrikatör for better control and insights. You can book a free demo to learn more about Fabrikatör!

Batch Production Constraints 👔👔👔

In apparel, you usually must produce a batch of products from the same fabric/material. Therefore, you can’t just order one size of a specific variant, just like ordering only Small size products. You need to order the full set of products using that fabric. Using a system that supports minimum order quantities on different levels is very important.

• Using inventory management software that supports this feature is an efficient way of eliminating batch production constraints. How? Let's say you want to produce a new line of t-shirts in various sizes (small, medium, and large) using a specific type of fabric for your apparel store. With traditional batch production methods, you may need to order a minimum quantity of fabric that exceeds your store’s immediate needs, which leads to excess inventory and increased costs. 💴 However, with functional inventory management software that supports MOQs, the brand can accurately forecast demand for each size, allowing you to order the amount of fabric required for production. This helps minimize waste, optimize inventory levels, and reduce manufacturing expenses.

Supply Chain Issues 🚚

As you already know, supply chain issues are one of the reasons for experiencing out-of-stock situations. Having multiple suppliers is just as important as maintaining relationships with your existing ones. Having backup suppliers for the same items in online clothing stores is important. 👒 Depending on just one supplier can cause problems like delays or quality issues. But with multiple suppliers, you can avoid these risks and even negotiate better deals. Plus, it gives you more options for different styles and designs, which keeps your store fresh and competitive. So, having diverse suppliers is key to running a successful online clothing business.

• Expanding supplier diversity is not always easy, and managing it with Excel can be another challenge due to manual data entry. However, with advanced inventory management software like Fabrikatör, you can easily handle multiple suppliers & maintain successful relationships with them. This allows you to have a variety of suppliers for your fashion store while reducing supply chain issues.

Lack of Comprehensive Analytics 📊

The answers to questions like "Which style in products sells the most?" and "Which size requires more stock?" are hidden in comprehensive analytics. Many apparel businesses struggle with lack of in-detail and insightful analytics and advanced reports. If they don’t have the right tools, it is challenging for them to track which sizes and styles of clothes are selling best. Without this insight, it's difficult to understand customer preferences further and make informed decisions about inventory stocking.

• You can implement size and style-based reporting through advanced inventory management software like Fabrikatör. This feature allows your business to track sales trends and customer preferences accurately, enabling you to optimize your apparel inventory levels and keep your customers satisfied. 🛍️

Lack of Product-Based Forecasting 👗

Product-based forecasting is crucial in the apparel industry because even if one size is out of stock, customers may refrain from purchasing the product altogether if they cannot find their preferred size. This scenario reveals the importance of accurately predicting demand for each product variant. Plus, it helps businesses predict potential high returns due to size issues, so they can adjust their plans accordingly.

• As you see, apparel inventory management heavily relies on forecasting. The solution for this problem also lies in analyzing historical data and applying accurate forecasting for future inventory plans. You can optimize your clothing store's inventory levels and minimize the stockout risk by understanding which sizes and styles are in high demand. Additionally, with forecasting, it is possible to predict potential high returns due to size issues, adjust your inventory plans accordingly, and maintain customer satisfaction.

Using Excel as a Fashion Inventory Management Tool 🤔

Are you using an Excel spreadsheet to manage your apparel inventory and solve the inventory problems for your eCommerce brand? Excel, as a potential solution, can result in even more problems with its limitations. How so? Managing clothing inventory with Excel is like navigating turbulent waters 🌊 with an unreliable vessel. 🛶 Why?

• Excel lacks real-time tracking, making it difficult to keep up with fluctuating demand and changing inventory levels.
• Manual data entry increases the risk of human errors, leading to inaccurate inventory reports, potential stockout, and overstock issues.
• Excel also lacks advanced features like sales forecasting and automated purchase orders that are essential for optimizing inventory levels and meeting customer expectations efficiently.

That’s why it might be time for you to leave Excel behind and level up your eCommerce store’s inventory management. How? With a functional inventory management app, which is none other than Fabrikatör!

Fabrikatör, Ultimate Solution for Your Inventory Problems 🚀

Are you seeking an inventory management app to eliminate possible apparel inventory problems? Fabrikatör is here for you!

Apparel is an industry where customers can't wait to receive their orders, especially when they purchase online through eCommerce platforms like Shopify. 🥳 We understand your challenges in keeping up with the rapidly changing eCommerce apparel industry. But don't worry! Fabrikatör has the tools and features you need to navigate through it all. 🛍️

With Fabrikatör, managing your online apparel store is a breeze! You can:

👉 Anticipate future demand and create more accurate plans,

👉 Handle unexpected stockout by accepting backorders,

👉 Easily replenish your stock and save time,

👉 Generate purchase orders in one click,

👉 Gain valuable insights into your inventory,

👉 Utilize the integrations developed by Fabrikatör to enhance your inventory management process,

and much more.

Would you like to eliminate apparel inventory headaches with Fabrikatör? 🚀  See Fabrikatör in action now & discover how to manage your eCommerce fashion brand's inventory! 👒

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