Merchandise Inventory
What is merchandise inventory?
Merchandise inventory refers to finished goods available for sale by a wholesaler, distributor, or retailer to the end user. Merchandise inventory includes any inventory that is readily available for sale whether in route to your location, on display or shelves in a store, in a warehouse, or at alternate locations. Most B2C businesses work with merchandise inventory.
Is merchandise inventory a current asset?
Merchandise inventory is classified on the balance sheet as a current asset because it can be sold and converted to cash. When sold, business records should be updated to reflect the sale price and to remove the item from inventory. In SOS Inventory, all data is intertwined, so when a sale is logged, inventory will be updated automatically.
In fact, SOS Inventory ties your finances to your sales department, fulfillment, manufacturing, finance, and extensive inventory management capabilities.
Greater insights into your merchandise inventory activity gives business owners much needed control over productivity and profitability.
Effective inventory management is key to ensure the right products are available in the right quantities to meet customer demand, while also minimizing waste and overstocking. Merchandising, entails the presentation and promotion of products to customers and includes product placement, pricing, in-store displays and marketing materials. Effective merchandising can help attract customers, increase sales, and build brand awareness.
How Can You Manage Your Merchandise Inventory More Effectively?
Your inventory is coming and going in different directions – arriving from manufacturers, going out through your shipping department or a drop shipper. You’re selling it online through multiple ecommerce platforms, in your retail outlets or on consignment. When inventory is always moving, incurring costs and waste in the process, knowing how much you have and how much it cost is a guessing game if you don’t track every workflow and cost incurred. Merchandise inventory management is much more manageable with integrative software.
The cost of goods sold sums up all the costs merchandise inventory incurs from the time you receive it through delivery to customer. Reducing those costs wherever possible help increase profitability and work directly towards making your business more successful. Gaining real insights into product performance will provide you with direction to make important decisions about each product.
SOS Inventory is your merchandise inventory software to the rescue! SOS simplifies your team’s job by unifying all data from every access point.
-
Track Turnover
The faster you sell merchandise inventory, the higher your turnover. Turnover rate is directly tied to available cash on hand. The longer you retain an item in stock, the longer it takes to free money tied to that item. While it sits in inventory, it can accumulate additional storage costs or become obsolescent, eating away at profits. You may want to classify your best sellers to keep more on hand because they are responsible for most of your profits.
-
Real-Time Inventory Counts
SOS Inventory allows you to use both periodic and perpetual inventory methods. Growing businesses and businesses with many products benefit from the accuracy perpetual inventory affords, i.e., matching inventory quantities and costs company wide.
-
Merchandise Inventory Software Automatically Calculate Beginning and Ending Merchandise Inventory
SOS Inventory offers over fifty different types of report to perform in-depth analysis of any product to review costs of goods sold, product performance for any length of time, waste, labor costs, etc. View your inventory costs and sales for decision making or tax purposes.
-
Transparency
Whether deciding on future product acquisition or seeking investors, having accurate information is essential to your company’s growth.
-
Integrate Multiple Sales Channels
If you sell online through multiple ecommerce platforms, logging in and managing them each separately wastes time and creates discrepancies in data. Via API, SOS Inventory integrates all information to ensure inventory counts are updated across all platforms for accuracy and greater backend control.
Having better control over your merchandise inventory allows you to meet financial obligations, make important decisions about investing cash flow, and highlights areas for improvement. Increase your profitability and scale for growth with the affordably priced software for all your inventory management needs.
