We’d all like better visibility on how many of our products sell and where. We say, if you can’t measure your business, you can’t manage it. To get this right, you need to work out some key indicators of performance.
You need to select the right amount of data points. Not too little, not too much, just the right amount to reduce your costs and improve efficiency and growth. Good reporting and analysis gives you visibility to make this happen, but what are the 4 things you can do to make this happen?
1. Collect accurate data
You have a business to run and for any of this to happen, you need to have the right data. In this case, you need to structure the data so that it’s meaningful to your business and to you (this needs to be done regularly). This will give you the opportunity to segment the data so it’s well-structured and flexible. For this, everything has to be up to date and accurate.
2. Collect enough data
When you have more inventory, you’ll be able to offer more variations. As a result, you’ll sell more. You need to get the balance right between having enough stock so you don’t run out or experience a stock shortage, and having too much stock so that you don’t run out.
3. Review & break down sales
With the Volo reporting tool, stock forecasts help you to delve down to individual SKU level. You’ll be able to find out the supplier lead time for reordering the stock and the days until you had to re-order the stock.
Volo’s platform lets you set up automated email notification to let you know if a SKU’s stock level goes ‘amber’ or ‘red’, depending on the different rules you set up. Dead stock can be a drain on profitability, so being able to see what stock has had no sales for 7, 30 or 60 days can help you identify poorly selling items.
4. Perfect your profit
There’s no way around it, the secret to long term success is looking at your margins and profit. You can’t concentrate on pushing products that make very little profit, while discounting ones that sell in small quantities and make a high profit. There’s various costs that combine to turn your gross margin into net margin on the items your selling, but collecting these can be time- consuming. You need a tool that'll help you to define these charges, set targets and manage performance against target on all channels, countries and SKUs. The other way of looking at this is if you track your margin performance over time and make adjustments from that.
It’s clear that data and analytics affect all the main areas of a multi channel selling business. The Volo Vision reporting and analytics module gives you the detail behind the numbers using visual reports that provide at a glance figures and trends. Here’s what a few Volo customers had to say:
I’ve been using the Volo platform and Volo Vision module for over three years and during this time we have more than doubled our business
Tal Sanga, eCommerce Manager, Thompsons
I really love the reports that tell us where are dead stock is and what our best selling items are. For example, the report on dead stock enabled us to streamline the items that didn’t sell.
Trevor Ginn, Founder, Hello Baby
Volo’s reporting dashboard has really helped us maximise our profitability. There were points where we weren’t making profit on certain products because we weren’t analysing the numbers.
Hiren Soni, Founder, Sustuu