Staying on top of your product inventory levels
Staying on top of your inventory levels is one of the most challenging things about running a small handmade business. Holding too much stock can tie up a huge amount of your cashflow, while not keeping up with demand can lead to loss of sales: both are situations you need to avoid when building up your burgeoning business.
Using a professional inventory software application means you have your historical sales data at your finger tips to enable you to make the best decisions for your business, when you need to make them.
One of the most useful things to know is how popular your products are - you should always be aiming to hold slightly more stock of the products that sell the most. Craftybase's Product Report shows you your most popular products for any date range - this can be an excellent way of ensuring that you are creating items that have a high chance of selling.
Another thing to be aware of is how products change in popularity during the year - your Beanies and Scarves in the example above may be hot sellers in the winter months, but in summer not so much. Ensure that you are looking back at a similar time period to ensure that you are making the stock that is likely to sell now and in a couple of weeks time. However, keep in mind international sales here too: stocking unique winter items in your summer could be something to consider if they sell well year 'round.
Also mark your calendar for any dates that might indicate a spike in purchasing: the couple of months leading up to Christmas is always reliably busy for online sales. Cyber Monday (the Monday after the Thanksgiving holiday in the United States) is gaining popularity year on year so this one is definitely another date to watch out for. Being ready for these dates means you can have the stock you need and avoid offering backordered stock to your potential customers.