Magento 2 Inventory Management: Best Practices and Issue Resolution

Do you find it difficult to manage the inventory of your online store? With a growing business and rising sales, you might have outgrown the capabilities offered by the current systems. 

Magento 2 inventory management can help you scale and tackle new challenges efficiently. This latest version comes with quick loading, added payment gateways, and a hassle-free checkout to boost UX. 

This blog explores the new Magento inventory management software in detail. The new version is more advanced and responsive than its predecessor. It will provide you with greater control to organise information and smoothly manage notifications.

What are the categories of Magento 2 inventory management?

The new version lays the foundation for the following: 

• Single warehouse management: This is ideal for small online stores that operate through a centralized location
• Multi-source inventory (MSI): Online stores with multiple physical locations or warehouses can use MSI.
• Bundle product inventory: Items that are packaged and sold as a single purchase can use this feature.
• Configurable product inventory: You can classify product variations on the basis of size, colour, etc.
• Backorders and pre-orders: You can easily manage upcoming products that are currently unavailable in your stock.
• ERP integration: It provides you with a 360 degree view of various aspects like inventory, supply chain, accounting, and customer management.

Here are key features of Magento 2 inventory management

1. Better product management   

The Magento inventory management system comes with enhanced product management in the following ways:

• You can create and handle product listings in the admin panel
• Set various product attributes like SKU, name, item description, price, weight, available quantity, shipping costs, and more.
• Organise products into multiple categories 
• Assign products to various websites or store views to manage stock

Overall, Magento 2 inventory management features helps with accurate inventory tracking.

2. Leverage multisource inventory (MSI) functionality  

You can manage Magento store inventory from multiple locations like warehouses, retail outlets, and distribution centres. Additionally, you can also track various products from diverse sources. The Magento inventory management software lets you access  intelligent inventory allocation.

This means you get modern capabilities like, once you receive an order, the software analyses the shipping address for the nearest available stock. This helps to manage stock inventory data and make the most of it.

3. Access stock management & tracking 

You get a detailed stock management system, which is powered with automated updates in real-time. This means it’s easier for online store merchants to predict and escape stockouts. It provides a quick resolution to manage inventory potential issues.

You get the following:

• Granular reporting: Access in-depth reports of the available stock with knowledge of the quantity already ordered and the number of items left.

• Easy inventory updates: You can update products individually or in large groups. This proves helpful for managing large catalogs or regular inventory updates.

• Stock availability settings: Set proper status of items whether; in stock, out of stock, or on back order. You can send custom notifications for customer desired products or wishlists. 

4. Streamline backorders & pre-orders management

Magento 2 inventory management lets you access in-built management features for backorders and pre-orders. This means customers can reserve out-of-stock products with greater priority. You can generate excitement among the online store customers by letting them pre-order before the actual product launch/availability.

5. Stay tuned for stock notifications

One of the most handy features of Magento inventory management software is You can set thresholds for stock levels. This means the software will alert you once the product is below the established limit.

6. ERP Integration  

Magento integration of the enterprise resource planning feature makes it ideal to manage large scale businesses. It lets you integrate various Enterprise Resource Planning (ERP) systems.

This proves helpful with synchronization of stocks with accounting, finance, and supply chain. Additionally, it also improves the customer relationship management capabilities of the eCommerce platform.

What are the benefits of Magento 2 inventory management?

Overall, the latest Magento inventory management offers various distinct advantages and automates vital operations. Some of the notable benefits include the following:

• Fine-tuned inventory control
• Real-time updates on stock quantities
• Enhances shopping experiences of the customers
• Helps customers to quickly place orders
• You can update customers on product availability
• Option to place pre-ordering
• Manage single or multiple warehouses
• Capabilities to predict the sale of specific items
• Gain in-depth reports on changes in product demands 

Best practices for Magento 2 inventory management system

Some of the standard practices that can help you observe your inventory to deliver customer demand with an exceptional buying experience are as follows:

1. Leverage demand forecasting

You can make the most of demand forecasting by analysing sales patterns & social media data, building market-effective reports, and using web analytics tools. This involves the following:

• Gain insights into your online store’s best-selling products and determine the period of their peak season sales. 

• You can drive customer insights and their purchasing behaviour through research firms’ online databases, such as Gartner, Forrester, and the National Retail Federation (NRF).

• Use social media to find business data regarding product reviews and popularity. Popular platforms include tracking Instagram, TikTok, Twitter, etc.

• Trust web analytics tools like Ahref, Semrush, Google Analytics, etc., for keyword research and your competitors.

2. Implement the ABC analysis strategy

You can categorise your customers into three main categories as follows:

• Category A (top 20%): These include your bestselling products or items with the highest profit margins. You can also include customers contributing to the most extensive or frequent purchases.

• Category B (mid 30% to 50%): This range of saleable items or customer groups provides you with moderate revenue. 

• Category C (low 20%): These items or customer groups generate low-profit margins or sales. They mainly include one-time customers who are unlikely to return. 

3. Plan well for seasonal changes in demand

The peak and low points of sale on your Magento store depend on the time of year. You must analyse these points and plan in advance accordingly, upgrading inventory stocks as necessary.

4. Build strong relationships with suppliers

A good partnership with your stock supplier can help you yield profitable outcomes during surges. Ensure smooth communication and value their feedback to build good relationships with your suppliers. 

Wrapping Up

Magento inventory management is crucial for your eCommerce business. The powerful tool offered by Magento 2 can help you streamline processes and optimize your inventory management strategies. 

At chilliapple, an Adobe Magento agency, we can help you seamlessly update the latest inventory software. We have a team of certified Magento developers to assist you with a smooth transition.