“I have enough jewelry” said no one ever, never ever a jewellery shop owner. With selling online becoming tremendously easier, homemakers are spending their spare time crafting homemade jewelry that can be sold online for a handsome profit.
But, like anything remotely related to running a business, maintaining inventory for a jewelry store is one heck of a job. To add to the owner’s woes, each piece is unique, except for few labels which are sold in uniform designs.
Still, you will have more number of SKUs to manage and control than your neighborhood grocery store.
The trick is to strike a fine balance. Like polishing the finesse of a piece of jewel, you have to find out how to track jewelry inventory without much trouble.
The sad truth is, there is no straight guide or handbook that explains how to keep track of jewelry inventory. Until now, the jewelry industry has been in the hands of retail brands and fashion labels who had well-established resources including jewelry inventory management software to take care of everything.
For a homemade business owner, the tables are turned around and getting to the other side of comfort is not easy. That is, until you know how to do it.
This is a blog post written for those of you wondering how to manage jewelry inventory in an eCommerce scenario.
Composite Stock Management
Unlike other materials, jewelry comes as put together pieces. Several metals and type of jewelry like gold chain, platinum band, diamonds, etc. are put together to form a single piece jewelry. Not every component of a jewelry will be available in equal quantities.
For instance, a single piece of Model X might need 2 gold chains, one diamond and a platinum band.
Model Y might need you only 1 gold chain but 3 diamonds and 2 platinum bands.
So, the stock for diamonds and platinum bands must be available if the orders are to be processed.
Thus, order processing needs to be tightly integrated with inventory levels. On the other hand, there is a high chance of picking up too many orders than what you have stock for to fulfill.
The jewelry industry is infamous for inconsistent price changes. Global demand and local supply can fluctuate the price of jewelry substantially. Price volatility can also affect your inventory value overnight.
Along with the stock prices, your profit margin is also bound to change. Monitoring inventory stock value and working out the profit margin is something that takes a huge amount of time and effort. Automating the tasks using a jewelry stock management software is the best way out to save time and also to eliminate the errors that are so common in manual processes.
Manage Multiple Selling Channels
In addition to selling through your jewelry eCommerce store, there are several other mediums to sell your jewelry including consignment, wholesale supply, agency, franchise, etc. All of this requires elaborate inventory management. The stock available at each outlet needs to be accounted and summarized under a single console to enable further purchasing of stocks.
Without such summarized information you have all the probability of running into stock-out situations. Also, order fulfilment will also get affected if inventory from all selling channels are not monitored on a timely basis. A jewelry inventory tracking software with omnichannel capabilities is the way out of this mess.
Product Information Management
Inventory management and PIM (Product Information Management) go hand in hand. PIM helps assign a unique number or tag to each jewelry item in your inventory. This serves two purposes. first , updating bulk upload of product information and meta descriptions becomes easier.
An even bigger benefit is that you can track item-wise inventory level. Analytic reports or even a simple stock level report on a given day can tell you how much a particular model or design is moving and which one needs more marketing or display for boosting sales.
PIM also facilitates to organize and manage your inventory by brand names or labels. This is especially useful if your online jewelry store has many product variants classified into carat, finishing, grade, material, etc.
Is PIM a separate integration? Mostly, not, since most inventory management software come enabled with elaborate provisions for PIM. So your problem of how to track jewelry inventory will go out of the window if you can use an inventory management system integrated with PIM.
These are few proven ways to manage your inventory for jewelry store. Proper management of jewelry inventory will save your time, avoid piling up of dead stock and also help monitor loss due to theft or pilferage.