Our top 5 high demand products for this peak season

By Regina Baily
Published in Solutions
December 01, 2022
5 min read
Our top 5 high demand products for this peak season

One of the first things any ecommerce merchant worth their salt does when expanding their product line is to look at which products are most in demand. This can vary by market or geographic location, but more often than not, the same types of products seem to trend in most areas due to increasing globalization. We’ve gathered together a short list of five of the most popular ecommerce products you can start offering in your shop today to boost your bottom line and improve relationships with your customers. Read on for our definitive ranking alongside some tips  and tricks to make sure that you can successfully manage your stock levels once you’ve got all your shiny new offerings safe in your inventory.

The 5 biggest products right now for ecommerce merchants

First up is fashion products. From clothing to shoes to accessories, online clothes shopping is booming more than ever. Not only do customers enjoy the wider range of sizes, styles, and colors available on ecommerce clothing sites, ordering clothes online also allows them to try everything on in the comfort of their own home and see for themselves how well the new pieces fit into their preexisting wardrobe. Of course, getting into the fashion industry necessitates a robust system of reverse logistics and returns processing, but this is a small price to pay for access to such a promising niche.

Secondly, snack foods. Although you may have the convenience store in mind when imagining where most people get their snacks, the truth is that more and more people are turning online to get their cravings satisfied. Make sure you’re able to maintain storage and temperature standards to the highest level, and you’ve got this niche in the bag.

Third, cleaning products, especially handmade soaps, are growing increasingly popular. People love to feel clean, and they love to be able to do it in an environmentally friendly, healthy, and aesthetically pleasing way. Natural or specialty cleaning products represent a market growing bigger each and every year, and is well worth your consideration.

Toys represent place number four. Especially with the holidays coming up, many parents, grandparents, aunts, and uncles are turning to ecommerce websites in order to order presents for Christmas, Hanukkah, and December birthdays. Provide excellent product photos and specifications, and maybe consider throwing in some batteries if the toy requires them.

Last but certainly not least, coffee. We’re far removed from the days of getting instant coffee from a can. People all across the world are becoming passionate about unusual and delicious coffee blends that can’t be found in their local supermarket. Offering a variety of interesting beans could get you a heavy boost in traffic from the java-obsessed buyers of the world.

Once I have these products, how do I make sure I have the right amount?

Inventory strategy is all about maintaining the right level of stock to meet your customer’s needs. It’s a delicate balance act. Too little inventory and your customers go without and will often seek out another provider with a more robust and resilient supply chain. Too much inventory and you’re left paying hefty storage fees for inventory that may not sell anytime soon. Inventory forecasting goes a long way towards being able to predict customer demand before it hits, making sure that you’ll be able to have everything you need on hand ahead of time.

What is overstock?

As a rule, it’s ideal to have a relative balance, but supply and demand can be difficult to reconcile. Although you definitely have the option to skew more on the inventory side if you want to have a bit of a backlog or a bit towards the exclusivity side if you want your products to feel special and if you’d like to make a bit more profit, it’s best to keep these opposing but complementary forces in a tight dance. If you have too much product to serve too little demand, that means you have overstock inventory. That leaves you paying for the manufacture and storage of merchandise that you just can’t move quickly enough for it to be profitable. You might have to start downstocking, meaning that you box up all the items that aren’t selling well and ship them to a discount store or other alternate retailer.

How do you define stockout?

Stockouts represent the opposite problem. Too much demand for too little supply leaves your warehouses empty and your customers frustrated and wondering if you’ll be able to deliver consistently. In an increasingly tough industry, it’s difficult to justify items being out of stock for more than a couple weeks that won’t leave your customers looking for their fix elsewhere. Especially in this day and age, where consequences from the Covid-19 pandemic have left the global supply chain reeling, stockouts can sneak up on you. It’s important to maintain a healthy level of safety stock to avoid any issues.

Is there a way to know how to find average inventory for a given period?

Finding out how to calculate average inventory doesn’t have to be rocket science. Although there are a number of average inventory calculator programs (both standalone and integrated into a wider order management system) that can help you out if you don’t feel comfortable doing it yourself, it’s a simple enough equation that you could even do it by hand. Simply take your current inventory, add it to your previous inventory, and divide that number by the number of inventory periods you’ve considered. Like magic, that’s your average inventory formula.

How about my turnover rate?

Inventory turnover is another important metric that can help you make sense of your business. A rate that’s too low is indicative of a business struggling to make sales. The formula goes as follows: Cost Of Goods Sold ÷ Average Inventory. Cost of Goods Sold (COGS) is a measure of the production cost of goods and services, including the price of raw materials, manufacturing, and factory overhead. You calculate average inventory by taking into account fluctuations throughout the year, considering both peak and off-seasons. At that point, you want to run a Days Sales of Inventory calculation by taking the inverse of your number and multiplying it by 365. This tells you exactly how many days it takes to sell out the entirety of your stock.

And my reorder point?

Reorder point calculation isn’t as difficult as it used to be before the age of technology. Your SKU manager may very well have the capacity for calculating reorder point numbers built in. If for some reason you don’t have a reorder point calculator on hand, though, here’s the time between orders formula you can use to do it by hand: Reorder Point = Demand during lead time + Safety stock.

It’s that simple. Of course, the trouble can come when figuring out how much demand there is during lead time, and how much safety stock you should have on hand. But let’s say that it takes a month to receive new products from the manufacturer. You may want to take the amount of orders processed during your highest month so far, and then double it or even slightly more. This ensures that your reorder level is sufficient even if there happens to be extra demand, or your new inventory is a bit late.

In conclusion

You may be wondering exactly how to make sure you’re neither caught in an overstock order or out of product for weeks to come. Not to worry. P2Pseller’s got your back. Our information and inventory tracking software enables you to calculate the amount of safety stock you should have on hand at any given time, and automatically reorder product once you hit a certain threshold without overordering. Register a free account with us today to browse the full extent of our offerings, without any commitment required on your end. We’d love nothing more than to have you on board.


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