Help...My online retail store has empty shelf syndrome!

Empty Shelf Syndrome or known as ESS, impacts retailers at various stages throughout their business life.

An online store is very similar to a physical retail store in relation to what products to sell and managing stock. The process of ordering & packing products onto the shelves, hopefully for 'quick' consumer purchase, is fairly much the same for both types of business models.

With online retail, products need to be loaded into the eCommerce website, images uploaded and descriptions with pricing entered. And just like a retail store, this all needs regular maintenance including stock-takes and updating of product listings.

Problem for both styles of retail is all your capital gets tied up in the whole 'stock' process. From the time you order, make payment and then actually receive the stock plus product images & information, this can take anywhere up to 6 months.

Solving the Empty Shelf problem?

One solution we have come up with to solve our 'empty shelves' is to work closely with another provider of Spencer and Rutherford, Etiquette by Mindy Mason and Funchico laptop bags. A fantastic business located in Queensland called Handbrag. We both list each other products and indicate that particular product will be coming from another provider.

So far this has worked well, however it takes strong communication to ensure orders run smoothly (from supplier to consumer), not to mention regular housekeeping such as  updating of product listings on our websites.

Another solution some follow, and is becoming more popular, is to drop-ship. A process where the product is shipped directly from the manufacturer. Postage from China and the US is fairly speedy and cost effective when you compare it to shipping items to the outer parts of Australia.

Do you have any other suggestions on how to solve ESS?

Why set up shop online?

Online retail v's retail store- Why are so many retailer's closing up shop and turning to the internet to sell their products?

Retailers report that shoplifting has a significant effect on their bottom line, stating that about 0.6% of all inventory disappears to shoplifters. In 2001, it was claimed that shoplifting cost US retailers $25 million a day. Information taken from http://en.wikipedia.org/wiki/Shoplifting

The beauty of stocking your products in an office space or warehouse, is the products aren't accessible to the general public. So unless your warehouse guy has 'light fingers' your stock shouldn't go missing. Increasing expenses, rent (especially if located in a Shopping Centre), electricity, staff wages are forcing retailers to close up shop and head online.

Don't be fooled - there are still costs involved when selling products online!

You no longer have the 'wallets past your door' and you will have to spend a great deal of time, marketing and researching to get your website known.

Have you asked yourself?

• Why are people going to visit your website and make a purchase?
• Do you have all your processes set up so when somebody does make a purchase they feel safe and secure they will receive their product in a timely manner?
• Have you organised reliable couriers or transport for your items?
• If you don't have the knowledge or time for SEO (search engine optimisation) do you have the funds to pay somebody to do it for you?
• If you don't have a store now, where are you going to store your products? If in your garage do you have a safe and secure place to keep your products?