Step 1
Factor in more than the cost you paid for each item. You should also factor the shipping cost, shrink, and damages. All of these should be considered greatly for your stores inventory. Small retail businesses have much greater costs than larger retailers.
Step 2
Stop thinking that the more inventory you have, the more you will sell. This is not true at all. If you have to much inventory, your customers will not be able to shop the items. I have been in retail for a long time. I know if a customer has difficulty shopping the items, they will not buy anything. You should start with a small amount of each item, then notice trends. If one item is selling better than another, order more of it.
Step 3
Rotate your inventory frequently. Customers tend to get bored easily. They do not get excited to go into a retail store and see the same thing in the front every time. If you have at least one area that changes frequently, it will keep your customers excited, and they will return often.
Step 4
Use your stock room properly. One major thing to remember in retail, If they can't see it they won't buy it. Only put items in the stockroom if you have a few of it on your sales floor. The items in your stock room should always be organized, and worked to the sales floor regularly.
Step 5
Organize your inventory properly. Make your sales floor inviting to the customers. Have all like items together, and organized. Do not put items in locations where they can not be seen. An easy shopping experience to a customer makes them feel more comfortable. If they are comfortable they will return. I know a lot of customers are looking for great prices on items, but they do not want to sacrifice easy shopping.
Step 6
Track your inventory on a regular basis. If you are a small retail store, this can be easily done on with a spreadsheet on your computer. Keep it updated so you will notice sale trends, and know what to order. If you have a slightly larger retail store, I would suggest investing in
inventory software. There are many option out there, and most are very reasonably priced. Make sure it is a program that you can easily understand, and operate.
Inventory control is the most important aspect in any retail business. Keep your items organized, and easily shop-able. Track every item that comes into your store. Remember that things
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