overstockArt.com CEO, David Sasson, posted a new article today on Practical eCommerce titled: Trials and tribulations of inventory management.
The article talks about the reasons why some online retailers hold stock and what are the advantages of holding stock as opposed to trusting your fulfillment with drop-shippers.
In addition, the article tries to give ideas on how to keep inventory levels low to release the ‘strangle hold’ stock has on the company’s cash.
“It is true that if you do not have it you can’t sell it. But more money invested in inventory creates potential problems of less money available for operations… Balancing your inventory for demand is critical to increasing sales. Also, the less inventory a retailer holds while maintaining the same revenues, the higher the return on investment and the greater the growth potential. For many retailers, holding inventory represents their greatest investment, so managing it specifically for your needs is an incredibly critical aspect.”
Read the entire article including a real-world proven algorithm to help in managing stock levels:
overstockArt.com’s Founder and CEO, David Sasson, shares his Black Friday experience with the readers of Practical eCommerce in his most recent column: What can online retailers learn from the Black Friday frenzy?
Every year David makes a trip to at least one store during the crazy first hours of Black Friday:
“As online retailers we do not get to see our customers in action. We have analytics software and other means to look at clicks. But to really sit there and observe customer behavior is an activity we do not get to do. Multichannel or brick-and-mortar retailers, on the other hand, can observe and learn many things from their customers.”
David shares his observations and makes recommendations as to how we, as online retailers, can capitalize more on the Black Friday frenzy by focusing on the emotions and ‘social affects’ the Black Friday shopping event has on the customers.
Read the entire article including some Black Friday stats:
overstockArt.com CEO, David Sasson, posted a new article today on Practical eCommerce titled: Focusing on the top 20 percent of your customers.
The article tries to explain how online retailers can utilize segmentation based on buying behavior to grow sales to the top 20% of their customer base.
David, off course, is talking from experience. overstockArt.com created a “Top 20” marketing initiative to cater to the Top 20 Club and try and turn more of their long tail to Top 20 shoppers.
The project is ongoing and will go through many changes and tweaks, but in general it has proven itself a resounding success:
“We are now able to hone our limited funds towards the type of people and businesses who can become part of our top 20 club.”
Read the entire article including real-time stats here:
David Sasson, CEO and Founder of overstockArt.com, has recently started writing his very own column on the popular online outlet, Practical Ecommerce. The column is called ‘Hand Painted Ecommerce’, titled appropriately after David’s own business product line, overstockArt.com’s unique hand painted art collection.
“The column is a collection of articles I will write each month about ideas in eCommerce and how we, at overstockArt.com, have put these ideas in place and learned from our experiences” said Sasson. “I am excited to start writing about my passion for Online Retail and I hope Practical Ecommerce readers will find the ideas and concepts beneficial.”
For Sasson’s first article, he chose to focus on the coming Holiday Season. “This is the most important time of year for most Online Retailers, and so it is best to focus on the short-term gains of the holiday then anything else. Therefore, for my first column I choose to give retailers on the brink of holiday season a list of simple action items they can implement in their organizations. They don’t have to try them all, but these are ideas and methodologies that we, at overstockArt.com, have put to the test and have succeeded with in the past.”
Sasson covers in the article titled, Preparing for the holidays, a wide range of retail known pet peeves: Inventory Management, Fulfillment, Website Preparation, Marketing Initiatives, Company Culture and more. Sasson gives advice on each and offers ideas on how to mitigate Holiday driven crises that might rise due to the projected increase in demand.
Sasson says that for his next articles he will focus more on long-term strategies in addition to useful tools every online retail CEO should have in his arsenal.