Is your current “inventory system” just a pile of unlisted items on a spare chair or stacked in corners all around your home?

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This challenge is all about turning that sourcing chaos into a well-oiled machine.

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If you need to finally purge that death pile, create a SKU system that actually makes sense or just figure out exactly where you put that vintage brass owl, we’re doing it together.

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Use this challenge as a guide to count your stock, refine your storage, and set up a workflow that ensures you spend less time searching for items and more time selling them.

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Continued below

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Continued from above

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The challenge

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Implement a (or refresh an existing) inventory management system for your shop and share the results.

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The details

Starts: January 1

Ends: January 31

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Challenges are self-led. I encourage you to post about your progress in the comments and cheer each other on!

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What you need to do

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1. Collect all of your inventory in one place and ensure it all aligns with your shop. If they're hidden away in bins, pull the pieces out. You won't get a true understanding of what you have until you see it all at once.

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2. Make a pile of items that you took a chance on but that don't fit with what you sell anymore, or that haven't sold in X months/years (whatever your personal threshold is for too long), to further reduce or donate.

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3. Identify slow-moving items that are ready for re-merchandising or re-listing that you may have forgotten about.
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4. Make another pile of items that need repairing or cleaning that you haven't yet gotten around to dealing with. Create repairing and cleaning bins or shelves where products must go once you source so they can be dealt with before being added to your inventory (like an "inbox.")

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5. Count all of your inventory. This will give you a sense of your total inventory and where you may have gaps or too many products of one type. Accurately tracking what you have helps to avoid taking on excess stock in the future.  

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6. Assign each item in your inventory a simple identifier that you think you will be able to keep up with. A few ideas on how to do this:

• Keep a complete list of items (spreadsheet or manual) and note what bin or rack they are stored on so you can easily find them when an order is placed (i.e. mini brass owl, Shelf B)
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• Create individual SKU labels for each item. This is a good method if you have items that are packed away or bagged — place a sticker on the outside with the item's SKU so you can find it when rifling through a bin or shelf.
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• Number each item with a label and store on racks or bins housing a group of numbers (e.g., #167 means item #167 in the bin or rack that holds items numbered #160-200)
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• Add identifiers to your listing titles or descriptions so you quickly know where to pull an item from once the item sells.
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Note: When choosing identifiers or inventory numbers assigned to specific bins, group seasonal items together. For example, you don't need to dip into bins containing holiday products #500-#600 outside of the holiday season.

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7. Assess your current storage methods and space constraints. Would bins be better than shelves or racks? Clear bins or solid bins? Do you need more shelving? Is it time to consider external storage? Pick up the tools you need to streamline your process from the thrift store, the dollar store or an office or storage supply store.
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8. Consider how you can most efficiently pull listings down off multiple platforms once an item sells.
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9. Write down your inventory process and follow it every time an order comes through until you have memorized it.
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10. Make a plan to tackle your dead stock. Plan a sale, offer bundles or BOGOs, gift with purchase or donate.
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11. If you already have an inventory management system, pay close attention to your beginning-to-end process the next time you a) add an item to your inventory and b) fill an order.

• Where can you improve or further streamline your process?
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• How can you better identify when an item has sold on one platform so you can remove it from another?
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• Is your inventory too big or could it stand to be expanded?
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• Have you critically reviewed your entire inventory to identify dead stock?
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• What can you learn from that dead stock that you can bring into your sourcing expeditions this year?
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Share your results

1) Show off parts of your inventory management system for your customers to see as some of your social media content this month!

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2) Share in the comments below what you're currently doing and how you modify it. If you already have an inventory management system that is working really well for you, please share details and tips in the comments below so others can benefit from your knowledge!

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