How to Know When It's Time to Start Increasing Your Inventory

How to Know When It’s Time to Start Increasing Your Inventory

An increase in your inventory can either be negative or positive. Too much inventory is an excellent example of one thing you want to avoid in the business. You can end up losing money and hurting your budget. However, if the increase is intentional, you can satisfy the needs of all your clients.

There are many indications of when you need to increase your inventory. Below, we’ve listed a few signs that will show you when to increase your stock.


The market is always evolving. When there is an increase in demand, the only way of meeting these demands is by increasing your inventory. An increase in demand will result from inflation, a shopping season, or an increase in customers.

The increase in demand will require you to increase the inventory that caters to different consumers’ tastes and preferences. With an inventory management system, you can know the products that most of your customers love.

If you notice you are running out of inventory quicker than usual, it may be time to expand. Your small business will inevitably grow, so keeping up with this change will keep you going. 

Increasing your retail business to offer online orders will also create the need for more inventory. The demand for online shopping is growing. Make sure your business stays on top of it and offers this option to reach more customers. 

Always keep tabs on the economy and consumer trends. Match your inventory with these current trends. 

Better Inventory Management

Inventory management is one way of increasing your sales and boosting your warehousing efficiency. If you have perfected these strategies, it might be time to increase your inventory. Inventory management strategies bestow the business with increased efficiency.

Inventory management measures can have additional advantages to the business. The first being that you learn about better ways of closing sales. Also, you must be careful to indicate that you can meet all the needs of your clients. Check this out to know how inventory management will impact the business.


In an evolving market, new suppliers can have better products. You can try using the consigned inventory model to check whether an inventory increase will work. More so, this approach will secure your capital and assist you in testing the market.

The consigned inventory model is perfect if you don’t know the reception a product will have in the market. However, you need to create an agreement with the wholesalers to stipulate how long you can hold their stock.

Increasing your inventory can add some advantages to the business. These advantages will boost the growth of your business and cultivate more trust with your customers. Here are other advantages to increasing your inventory:

  • Quick replenishment – Having more inventory means that your shelves will always be full. Also, full shelves will be easier to keep tidy and neat.
  • There is no risk of shortages – During inflation and holiday shopping sprees, you’ll be sure that all your clients will find the item they want. If a product is discontinued, you can have it in stock before a shift in demand.
  • Quick response time – You can quickly fill all the customers’ items after they place an order.

If you own a small local retail business, it’s time to consider upgrading and increasing your inventory. However, you don’t want to make the mistake of attempting to grow too soon. Remember the above tips when determining the most advantageous time to add to your inventory. 

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