Understanding the Difference Between Product Types
Organizing and managing your inventory is one of the most crucial aspects to running your business. Not having an efficient system in place to do so can lead to lost, damaged or delayed orders. There are a number of different product types you can use to help account for your inventory:
- Simple product that gets delivered to your warehouse. No packaging or assembly required.
- An item that needs to be put together from smaller parts within your warehouse.
- A group of similar items of a parent item. For example, a T-shirt item that comes in different colors and sizes will all be grouped under the T-shirt family.
- A multiple of an item bundled together into one. For example, a case of sunglasses that are shipped together but sold separately.
Understanding these different types of products will allow you to organize your inventory so that you can keep your sales running smoothly and never run out of stock.
Raad Mobrem, CEO of Lettuce, producer of e-commerce and wholesale inventory apps, discusses how proper product categorization can help better manage inventory.