Trade Secrets to Help Boost Your Bottom Line

7. Stay in-stock, especially on your high-velocity/low-cost items. Most catalog orders average more than one line. So if any product on an order is not in stock, a second shipment has to be made to the customer, with no additional revenue to cover it.

The second package’s processing, packaging material, dunnage and postage usually costs $5 to $8 per backorder. If you’re trying to lower your inventory investment, don’t do it on low-cost, high-velocity items. You may find yourself spending another $5 to ship a product that cost you only $1.50 to have on hand.