Have you recently opened an eCommerce business? Then, you are probably looking for ways to manage it better. As a newcomer, you will compete with over 2.5 million online retailers in America. Hence, without proper tools to support business operations and customer expectations, your startup might fail.
On average, one in every five new startups fail in America within the first operational year. It happens due to a lack of management, improper security, wrong budgeting tactics, etc.
That is where security, logistics, and inventory management tools come into the picture for your new eCommerce business. These tools will help you stay afloat in this cutthroat industry and meet modern consumer demands. Whether you choose an analytics plug-in or an all-in-one website builder, these tools will help shape your brand identity.
In this blog, we will discuss three types of tools that every eCommerce startup owner should invest in.
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#1. Inventory Management Tool
On average, 34% of businesses struggle because of the unavailability of products or delayed shipments due to internal issues. As a result, it can lead to order cancellations and longer wait times.
When that happens, your eCommerce brand gets a bad review from consumers. It proves that inventory accuracy plays a significant role in maintaining the customer experience.
Similarly, improper inventory can lead to inappropriate cost control and risk mitigation. It can affect your startup’s future forecasting and planning abilities.
That is why your eCommerce business will need an inventory management tool. It will help you maintain optimal inventory levels while focusing on customer satisfaction and managing your supply chain. Consequently, you can prevent product loss and easily manage goods throughout the year.
An inventory management tool can also address overstocking and understocking issues, reducing costs by 10%. Integrating such a tool lets you deal with a sudden surge in demand and maximize resource efficiency.
It has reporting and analytical features that help you track production efficiency metrics and generate sales summaries. Hence, it can track and report purchases, production, storage, and sales. With it, you and your customers can follow shipments correctly through real-time data tracking.
When investing in such a tool, look for features like inventory tracking, cycle counts, stock counts, automatic reordering, and purchase order management. Features like demand forecasting, managing suppliers, and inventory optimization can also be useful.
#2. Secure Networking Tool
There were 1,802 data breaches in America, affecting over 422 million people. Moreover, 60% of new businesses might close shop within six months of a data breach. These statistics prove that cyber threats are common and can affect your eCommerce business’s future.
Hence, online network security should be your top priority. That is because your website holds sensitive client data like credit card information, home addresses, phone numbers, etc. All this information will be compromised due to cyberattacks like phishing, financial fraud, malware, spamming, bots, etc.
That is why your business will need a security service network to protect your enterprise data. It will help your brand stay ahead of evolving digital technologies. Secure networking ensures operational efficiency, maintains customer satisfaction, and manages security threats.
Ideally, these will help you gain client/server and data/transaction security. A secure network will also offer scalability and flexibility to your eCommerce business. Hence, you can adapt to the market and meet all the necessary safety or security compliances.
This network security will give your eCommerce startup a managed firewall to help protect your entire network. It will give your online presence a DDoS mitigation due to high-quality internet connectivity.
According to GTT Communications, all businesses should have a multi-layered and comprehensive network security package. With it, startup founders can promptly monitor, manage, validate, and respond to potential security threats.
#3. Logistics Tool
Logistics play a crucial role in running your eCommerce business. For example, if you do not have an idea about the number of products needed, you will end up with a deadstock. When that happens, your business will lose money and eventually fail.
Improper logistics management can also lead to shipping delays and stockouts. These will impact your business’s profit margin and customer satisfaction rate. That is why you need a logistics tool.
This tool will help you control your new eCommerce company’s product flow. With it, you can manage everything from buying materials to product delivery. Moreover, it can track your goods through stages like storage, manufacturing, and transport to improve process efficiency and productivity.
For instance, you can collaborate with a fulfillment platform provider to meet all your operational logistics needs. Integrating this with your online marketplace will help you gain real-time updates, order management, and forecasting features.
Industry leaders believe new eCommerce businesses will need such tools to meet consumer expectations and maintain an advanced supply chain. Therefore, you must select a platform with cloud-based services and a secure web interface. The software should have a customizable option so that you can change the tool as per your business needs.
The best logistics software for your eCommerce startup will surely help scale and streamline business performance. You will also save time, reduce manual labor, and utilize a transparent operational process.
3 Tips to Help Enhance Your eCommerce Business
By the end of 2023, the eCommerce sector is expected to grow by 10.4%. As more customers start shopping online, your business’s ability to reach new audiences grows. But you’ll need to focus on three things if you want to grow your startup by leveraging the increasing demand:
- Designing a website that is easy to navigate and aesthetically pleasing
- Measuring user behavior to understand what your customers want
- Building marketing campaigns to solidify a robust brand identity
You can achieve all these if you invest in the tools mentioned. For example, an inventory management tool will help automate day-to-day workflows and organize business operations.
The Bottom Line
Security, logistics, and inventory management tools will help run your online stores smoothly. Hence, your brand will grow, and your business can grow beyond your competitors. Collaborating with such service providers can help keep your business costs down and meet growing consumer demands.
You can gain these benefits because the tools help scale, organize, automate, and streamline your new business. In short, they can help eCommerce startup founders manage their online stores effortlessly. With them, your brand will succeed in the challenging eCommerce industry.