Inventory and Order Management Solution Provider Finds Five Commonalities of Successful Product Sellers
DENVER, Sept. 21, 2021 /PRNewswire/ — It’s no secret the COVID-19 pandemic disrupted industries around the globe, with many retailers, wholesalers and manufacturers paying the price: 28% struggled to keep afloat and experienced at least a 5% decline in revenue. However, according to a new report from Cin7, a pioneer in cloud-based inventory management software (IMS), other businesses grew at a rapid pace: 23% of product sellers saw their revenues climb by 10% or more. To uncover the trends of successful product sellers, Cin7 spoke with 4,000 businesses across the United States, the United Kingdom and Australia, while simultaneously examining the performance of their over 7,000 customers.
“Modern product sellers are far outperforming their larger competition during the pandemic, and we made it our mission to find out why,” said Doug LaBahn, CMO of Cin7, DEAR Systems, and Orderhive. “What we discovered is that the product sellers who grew their sales and revenue in the past 12 to 18 months have all adopted similar strategies: they’re investing wisely in the right people, technologies, and channels, and have experienced tremendous success as a result. They’re growing faster, more profitable, more confident, and really enjoying running their business — thriving!”
“In 2020, our business grew 69%,” said Steve Dunlap, CEO of LA-based fashion retailer Meghan Fabulous. “We found one system that could automate what we had previously been doing manually – purchase orders and production jobs – all at the right price point.”
Cin7 found that the most successful product sellers have the following five things in common:
- Multi-channel selling is the top priority
- 47% of businesses rated multichannel selling as their #1 priority for 2021, largely driven by consumer demand and the rise of e-commerce
- Half of all product sellers are adding four or more new sales channels; 82% are adding two or more
- The technology used to manage accounting systems and inventory management can have a big impact on sellers’ growth
- Nearly 1 in 3 product sellers are replacing their accounting software
- 56% are adding four or more sales channels as part of their investments in new inventory management software in 2021
- Accounting + Sales + Inventory Management = Recipe for success
- In 2021, there will be a 40% increase in sales channels and apps—from an average of 10 to an average of 14 integrations
- Product sellers who integrate sales and accounting apps with their inventory management platform are 43% more likely to be growing their profitability
- 32% of product sellers are more likely to be confident they’ll achieve their goals in 2021 by integrating sales and accounting apps with their inventory management platform
- Forward-thinking technical talent is a must-have
- Only 1% of sellers without technical talent grow and succeed
- Product sellers with a technology coach are 37% more likely to beat their competitors in operational efficiency, and 55% have achieved sustainable advantages for managing their inventory and multichannel orders
- The internal IT sweet spot? Three or more technical team members give nearly a quarter of all product sellers an advantage over their competitors, especially when it comes to operational efficiency
- It’s not just the amount of money you spend that matters, it’s where you spend it
- Modern product sellers only spend an average of 10% more on software than others
- Product sellers who build their software tech stack on online apps, software and services have the highest likelihood of operating as a modern product seller—9.1%—at the lowest annual cost ($38,500)
- Outsourcing fulfillment to third party logistics providers (3PLs)
- Product sellers using 3PLs are 30% more likely to improve their profitability
- Product sellers who used 3PLs earned 14% more revenue per employee than businesses that did not
- 35% of product sellers who do not use 3PLs plan to start working with 3PLs within the next year
“Our competitors were, frankly, overcharging for computer mice designed for gaming. We saw an opportunity to create a product that was better than what was currently offered for half the price,” said Greg Nutter, Director of Operations at Glorious PC Gaming Race. “We wanted to provide better customer service and turnaround times for orders by expanding the warehouse network. By implementing Cin7 and integrating with a 3PL provider, we’re seeing thousands of orders per day, and we’ve been able to handle it without a hitch. Growth has been explosive.”
To read the 2021 Inventory and Order Management Trends report, visit Cin7’s website at https://www.cin7.com/inventory-order-management-trends/.
