Every retail professional has come across the term merchandising software at some point. But what is merchandising software exactly, and how do you choose the right one for your business? With the number of retail merchandising solutions available, finding the right one can be as daunting as searching for the perfect jeans, feeling endless, but highly rewarding once you find the right fit. Relax, I’m here to help you like a friend who knows the drill.
We will discuss everything you need to know about choosing merchandising management systems under four headings that clearly define your needs. From explaining what these tools do to evaluating the best available options, we will do it in an informal, simple, and conversational manner. Whether you are looking for a store inventory management system or an assortment planning tool, you will have a clear strategy for securing the best retail planning solutions.
What Is Merchandising Software and Why It Matters
To start things off, let’s first discuss the foundations. Definitionally, merchandising software is the technological backbone of your retail business. It is a collection of tools tailored to assist you in managing the stock, designing the store layout for optimal sales, pricing, and planning for sales events. It is the automation that ensures your inventory is stocked and your shelves display the right assortment of products at the right time. Without it, you are operating on the whims of customer demand, a strategy that could cost you dearly in today’s dynamic retail environment.
So, what exactly does retail merchandising software accomplish? To begin with, it monitors stock levels in real-time, so you know what’s in your store’s inventory. It also estimates demand, which helps you avoid overselling as well as having your warehouses overflowing with unsold goods. Some software, like merchandise planning software, goes further by assisting you in forming strategies on which merchandise to stock and when to launch them. This is very helpful for seasonal items like winter coats or holiday decorations.
To understand its true impact, consider why using retail merchandising is a real game-changer. These days, customers are extremely exacting. They want what they want, when they want it. If your online store is pushing summer sandals in December or your store shelves are empty, you are losing sales. Retail merchandising solutions collect and analyze data to ensure you are offering the best products at the most optimal times. For example, an assortment planning tool can track sales to identify which items are bestsellers and which are not. This is a win for the customers and a win for your profits.
On top of that, merchandising management systems can greatly reduce your stress. Unlike before, where you had to manually reorder stock or crunch numbers, now tools do that automatically. Whether you operate a small boutique or a chain of stores, retail planning solutions give you operational efficiency while providing competitive insights. Experts in retail supply chain management, Increff, for instance, provides retail merchandising software that specializes in inventory optimization and advanced planning, making it an excellent choice for retailers wanting to enhance their strategies.
Key Features to Look for in Merchandising Software
When venturing into merchandising software, it’s natural to ask what makes it a worthy purchase. That’s great! Not all retail merchandising solutions are equal. So, in order to make it easier for your search, I would like to highlight the main features that should be prioritised in order to get a perfect match for your venture. This should guide you in choosing a merchandising management system that truly simplifies your retail tasks.
Store Inventory Management System
To lay the foundation right, a strong merchandising solution starts with an efficient store inventory management system. The most effective merchandising software will have an equally effective store inventory management system as its core component. It’s important for you to have an app that monitors your inventory in your physical store, online shop, or in your store’s warehouse in real-time.
Additionally, it is important to look for something that tracks your inventory for both understock and overstock. Extra benefits are offered by those systems that have seamless integration with your POS, as that system balances sales and stock levels perfectly. Ensuring that your systems are integrated prevents you from being taken by surprise by an empty shelf or unsold inventory piling up.
Retail Assortment Optimization:
Following inventory, assortment planning plays a vital role. It uses sales data, customer preferences, and market trends to help you make up your mind on products to stock. A good assortment planning application allows flexible inventory customization for seasonal, festive, or even regional variants. Suppose you operate a clothing store, the assortment planning tool will recommend stocking more winter jackets in colder regions, and pushing beachwear during the summer. Basically, it is like having a crystal ball on customer preferences.
Reporting and Analytics
Another key consideration is the software’s ability to provide clear reporting and actionable insights. You do not need to be a data geek to appreciate a good report and analytics tools. Simply put, one of the features of the best merchandise planning software is the clarity and simplicity of the user interface. It provides dashboards measuring sales, inventory turnover, and analyzing customer purchases. It is insightful to make decisions and take the stress of sifting through spreadsheets. You can adjust strategies once you know what products do better online. Complex data is now simplified and made actionable with great retail planning solutions.
User-Friendliness and Ability to Scale
As your business grows, so should your software. The question of scalability is important. The merchandising management systems should be able to grow with your business. If at one point you were a small shop with intentions of scaling to multiple locations, the software should be able to accommodate more products, stores, and even international markets. It should do so without any difficulty. These solutions should make working smoother, not more difficult. Retail merchandising software, ease of use, a friendly interface, and better functionality are ideal.
Integration with Existing Tools
Finally, integration is the key to a seamless retail tech ecosystem. Any business’s retail merchandising software must work with its existing systems, including e-commerce platforms like Shopify and WooCommerce, accounting software, and supply chain systems. A properly integrated assortment planning tool functions and retrieves relevant information from several systems in order to provide a holistic perspective of the business. A good example is Increff, which is known to retail with seamless integration across platforms to provide an all-in-one solution that retail merchants are looking for.
You are now equipped with all the crucial guidelines that you are supposed to keep in mind while looking for merchandising software! With a reliable store inventory management system, retail assortment optimization, advanced analytics capabilities, scalability, and retail system integration, an effective retail planning solution should serve all the business’s purposes. Take your time to explore these features in any system you are considering in order to guarantee the level of efficiency and customer satisfaction that you seek.
How to Assess Your Company Priorities?
Now that you know the features, it’s time to assess your business priorities. Evaluating the requirements of your retail business begins with an appraisal of your operations and processes. Every retail business has its own set of challenges and requirements. Thus, there is no “one-size-fits-all” retail management solution. Let’s go through the steps of evaluating your business processes and pinpointing the perfect merchandising management systems for your retail business.
Start by identifying your key challenges and problems. Do you need assistance maintaining an ideal stock level for your best-selling products? Is your store experiencing stockouts and stockouts due to mismanaged inventories? Do customers get frustrated due to inaccurate stock levels being displayed? The answers to these common questions will guide you to the proper store inventory management system. If, for instance, the problem is overselling inventory, you should be looking for systems with strong e-tail support.
Then, focus on the unique value of your business and your potential to achieve goals. A small boutique might only need basic merchandise planning software to track stock and plan promotions. If, however, you are managing multiple outlet stores or an online marketplace, you will need sophisticated retail planning solutions that will aid in complex logistics and retail assortment optimization. Are you planning an expansion? Is the business regionally restricted to one area or multiple areas? Are you selling in-store, online or both? These identify the right solutions for your business.
Also, the budget is another big factor. From low-cost cloud-based solutions to high-end enterprise options, merchandising management systems have varied pricing. Consider your budget realistically, but don’t select the cheapest option available. A solid assortment planning software might cost more upfront, but save you money by reducing waste or boosting sales.
Finally, your team’s tech skills matter too. If your staff isn’t super tech-savvy, prioritize user-friendly retail merchandising solutions. Increff’s retail merchandising solutions with a user-friendly design, combined with a helpful team, make the software easier to use for smaller tech-savvy teams. Also, check if the software offers training or onboarding to help your team get ready.
And of course, your customers always matter. Are your customers seeking custom-tailored shopping journeys? Are they omni-channel shoppers? From a merchandising standpoint, an assortment planning tool using customer data to modify the product mix is a competitive advantage. For example, if your customer base has an interest in eco-friendly products, your assortment planning software should ensure those products are showcased prominently in your inventory.
Comparing Top Merchandising Software Options
By now, you understand what merchandising software does and what features to prioritize. So let’s look at how to actually evaluate the available retail merchandising solutions and find the one that best fits your business. With so many merchandising management systems, you can start feeling overwhelmed, but don’t worry! These suggestions will help you focus on the perfect retail planning solution.
- Create a Shortlist of Options: Begin with a list of all possible and relevant retail merchandising systems. Well-known companies should not be the only focus. Smaller companies should not be overlooked, as they can offer flexible, budget-friendly retail merchandising solutions. Look at G2, Capterra, and retailer forums to learn what other businesses have to say about specific retail planning solutions. Be on the lookout for reviews that talk about software ease of use, customer support, and whether promises on retail assortment optimization were delivered. A bit of research will help you a lot.
- Test the Software Hands-On: Move on to a software evaluation of inventory management systems. Most Inventory Management System Providers provide free trials or demos of their systems. Analyze whether or not assortment planning and analytics dashboards function properly. Is the system’s interface user-friendly? Are reports easy to generate? Does the system integrate with other tools? For example, Increff’s merchandise planning software offers retailers ease of use and streamlined operations through its intuitive interfaces, automated planning, and seamless integrations.
- Understand Pricing Structures: Identify every financial component that could cause problems with your decision-making. Some retail merchandising solutions charge a flat monthly fee while others scale based on your sales volume or number of users. Watch out for hidden fees such as make and integration charges. Also, check whether or not the software locks you into a long-term contract. This is crucial for small to mid-sized retailers looking to have flexible terms aligned with their growth. A clear and simple pricing model helps you avoid surprises down the road.
- Evaluate Customer Support: Support is critical when something is not functioning as expected. Picture your assortment planning tool malfunctioning mid-sale. Look for companies that have 24/7 support or an assigned account manager. While smaller companies might be okay with email support, mid to large-sized companies require instant responses.
- Prioritize Integration: Integration is the glue that holds your different functions together. Your merchandising management systems should interface smoothly with your e-commerce platform Shopify or WooCommerce, your accounting tools, and your supply chain systems. Having an assortment planning software that is not integrated will be a recipe for disarray. Also, make certain that the software is compatible with your other tools, such as QuickBooks or your warehouse management system. Increff has a distinct competitive advantage here as they provide strong cross-platform integration with their retail merchandising solutions.
Conclusion
Putting all nuances aside, the retail business software selection can distance itself from being a daunting process. Enabling proper understanding of what retail merchandising solutions offer, prioritizing core needs metrics, objectively evaluating and understanding business requirements, and even evaluating the most reputed names in the industry, it becomes a herculean piece of cake. Be it the need to gain an edge with a robust store inventory management system or even a dedicated assortment planning tool, be sure that with the right software in place, it will empower scalable retail transformations.
Increff is a company that stands out in retail supply chain services and inventory management. Its retail merchandising software is both effective and easy to use. Increff stands out in retail planning services as nimble and effortless retail assortment optimization and system integrations, making them a preferred vendor for retailers of every scale.
With respect to retail merchandising solutions, it is important to remember that every business has its specific requirements, budget, and growth plans, and those factors ultimately drive the decision. Feel free to verify and test as many options as possible. With effective merchandise management systems in place, the retail sector will be yours to conquer.
