When setting up your brand there are a few things to consider when figuring out how you will manage your Inventory. You want to consider your budget, collection size, and whether you want to test an MVP before creating your final product.
PRE-
ORDERS
Setting up pre-orders is a great way of only making what's needed. Pre-orders are good if you're going to make sales purely through your online platform but it might not be the best option if you are planning on selling other platforms. Brands can use this pre-brand launch or for a new product launch.
SMALL
PRODUCTION
RUNS
The smaller the production run the higher the cost meaning lower profit margins but there are other benefits to having a smaller quantity of stock. Having a small amount of stock, to begin with, means you are able to test out best sellers and gain customer feedback before doing a larger production. It also means you can use your start-up budget to create a larger collection.
MADE-TO -ORDER
Making to order is a great way of starting out. When people know your products are made to order they are usually happy to wait to know that it's made just for them. It's also a more sustainable way of manufacturing because there are fewer waste products. There is also less financial risk and it allows you to have a wider range of products without investing in a large amount of stock.
SMOKESCREEN TESTING
Smokescreening testing is a way of testing the popularity of your product without having it in stock. Smokescreening is when you make a product page and see how many add-to-bag clicks your product gets so you can estimate how many orders you will get. This can be an effective way of testing pre- launch and on a test domain. It can also lead to
frustration and might leave your brand with a bad
reputation if used incorrectly.