The holiday season is a crucial time for retail businesses, with the potential to significantly boost sales and revenue. However, it also comes with its challenges, particularly when it comes to managing inventory. Proper preparation can make the difference between a successful holiday season and a logistical nightmare.
Here are the top five things you can do to get your inventory ready for the busy season:
1. Conduct Regular Cycle Counts using Stocktakes (video)
Making informed decisions about purchasing/reordering starts with knowing exactly what you have. Before, after, and during the holiday rush, it’s essential to do regular cycle counts of your products. Whether that’s high-ticket items or your most popular sellers, knowing exactly what’s on your shelves day-to-day will keep your customers and employees happy. Your shelves and backroom will be more organized since you’ll take the time each day to account for products.
Regular cycle counts with Stocktakes help identify discrepancies between your physical inventory and what’s recorded in your system. An accurate count allows you to make informed decisions about what needs replenishing, which slow-moving items should be discounted, and where your best opportunities lie.
Tips:
Use barcode scanners or inventory management software to speed up the process.
Prioritize high-demand items and verify their stock levels.
Identify and address any issues with damaged or obsolete stock.
Use Templates to automate your Stocktakes and keep the team on a regular schedule.
2. Forecast Demand with Data-Driven Insights (video)
Understanding which products will be in high demand during the holidays is essential. Use past sales data, market trends, and current pre-orders to forecast which items will fly off the shelves. Accurate demand forecasting helps you stock the right products in the right quantities, minimizing the risk of stockouts or excess inventory.
Tips:
Review last year’s holiday sales data to identify patterns on the Category Sales Report or Vendor Report.
Monitor trending products and adjust your orders accordingly using the Product Sales Report.
Collaborate with suppliers to understand lead times and adjust reorders as needed. Use our Stock Forecasting Report to see what needs to be reordered ASAP.
Set up and customize your Home page for quick insights into how the business is doing
Note: The hyperlinked video above is the same as #1 since they work so closely together.
3. Create Holiday Bundles to Delight Your Customers (video)
Holiday bundles are a great way to boost sales and offer added value to your customers. By combining complementary products into attractive packages, you can increase average order value and move inventory more efficiently. Holiday-themed bundles can also create a sense of urgency and appeal, making them perfect gifts.
Tips:
Bundle bestsellers with slower-moving items to clear out stock.
Create themed bundles that appeal to your customer base, such as “Gifts for Her” or “Cozy Winter Essentials.”
Highlight bundle savings to encourage purchases and create a sense of value.
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4. Optimize Your Reordering Process (video)
Streamline your reordering process to ensure a consistent supply of high-demand items throughout the season. Set up automated reordering systems based on predefined reorder points (previously called PAR level) and reorder levels. This will help you maintain optimal stock levels without over-ordering.
Tips:
Utilize the Auto-Add Reorder point or Low Inventory options to automate purchase orders when your stock reaches critical levels.
Add your vendors to Thrive to ensure timely deliveries and build in extra buffer time for potential delays.
Regularly review your reordering settings to adjust for changing demand during the season.
View the Low Inventory Report for a birds-eye view of what’s low (based on parameters you’ve set!).
5. Prepare for Returns and Exchanges (video)
The holiday season also means an increase in returns and exchanges. Having a clear process in place to handle returns can prevent inventory chaos and ensure that products are quickly restocked and available for resale. Make sure your return policy is clear and customer-friendly and that your team is trained to handle the influx efficiently.
Tips:
Doublecheck each individual integration’s Settings in Thrive to make sure your refund/restock settings are set up correctly.
Designate a specific area for processing returns to streamline the workflow.
Offer incentives like easy exchanges or store credit to encourage customers to keep purchases.
6. Educate and Train Your Staff (video)
Properly trained staff are essential to smooth operations during the busy holiday season. Whether you’re onboarding new hires or refreshing the knowledge of existing staff, ensure everyone is well-versed in inventory management, sales processes, and customer service. This preparation minimizes errors, boosts efficiency, and enhances the overall customer experience.
Tips:
Utilize Thrive University for free lessons on Streamlining Inventory Counts, Reporting Insights, and more!
Create quick-reference guides or cheat sheets for staff to use during peak hours.
Encourage role-playing scenarios to prepare staff for common holiday situations.
Provide training sessions focused on inventory handling, order processing, and POS systems.
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Final Thoughts
Preparing your inventory for the holiday season is a critical step in ensuring a smooth and profitable peak sales period. By auditing your inventory, forecasting demand, optimizing reorders, enhancing visibility, and preparing for returns, you’ll be well-positioned to meet customer expectations and maximize your sales potential. Start early, plan strategically, and let the holidays be a time of joy for both your customers and your business!
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