When you buy large quantities of merchandise from suppliers and then sell them in smaller amounts to retailers, your wholesale distribution business is always walking on a high wire. Because of the large upfront investments that you must make, it is crucial to be able to produce intelligent predictions before you put in the initial order. 

You might be surprised to learn that your merchant service provider can be one of your most valuable assets in succeeding at this important task.

Analyzing sales data.

The point of sale system (POS) from your merchant account provider is adept at furnishing sales analysis insights. These include information about customer buying behaviors, product volumes, and bestsellers.

The POS system from your payment service provider uses a database to store and categorize huge collections of details, including those related to the sales of your wholesale products. 

Using its reporting function, the system can aggregate these pieces of information into clear reports that highlight important trends such as profits and losses, sales volumes, and which products succeeded and which performed poorly. 

You can even learn which times of the year were the most lucrative, enabling you to map out an evidence-based framework for next year’s purchases.

Analysis of payment trends.

Looking closely at the ways in which customers pay can help in future inventory ordering. Your POS can review trends in preferred payment methods and frequencies, helping you to adjust accordingly.

Selling products online requires that customers make remote payments. Each time they do so, your POS registers the details in its database, enabling you to glean a great deal of data that you can use when assessing your future inventory needs.

The two most important factors are preferred payment methods and frequencies. Your system can, for example, let you know whether there is an emerging trend for installment payments among your clients. 

It can also determine if late payments are on the rise and are making a dent in your time and resources. These details can help you decide on the liquid financial assets you will need and can make your budget details more discernible.

Customer segmentation.

Dividing customers into smaller groups according to identifying factors such as payment habits, product purchases, and purchase volume will enable you to tailor your inventory ordering strategies.

The POS furnished by your merchant service provider can also assist you in dividing customers into specialized groups based on characteristics such as what products they buy, how they pay, and their specific buying habits. Once you have formed these sub-groups, you are in a better position to make targeted inventory decisions.

Instead of being forced to make sweeping purchases based on generalized approximations, you now have refined details about what each subset of clients wants and needs. Should you over- or under-estimate demand, you will be less affected by the consequences.

Inventory management optimization.

Your POS’s inventory tools can provide specific details about product quantities, including when you have over- or under-ordered so that you can ensure that you have what customers are demanding at all times.

When you order merchandise in vast quantities, you can’t afford to be vague about the amounts you will need. Fortunately, your merchant account provider’s POS equipment is outfitted with a robust set of inventory management tools that will take the guesswork out of inventory ordering.

By analyzing historical data from your past sales, it can help you determine optimal quantities to have in stock at any given time. Moreover, it can alert you when counts are running low and even let you know when items are failing to sell. Armed with these details, you can make intelligent forecasts when designing your future financial plans for product acquisition.

The wholesale distribution industry is challenging, especially when it comes to making smart inventory forecasts. 

The good news is that the technology featured in the POS equipment from your merchant provider truly can revolutionize how you make future decisions. Start making the most of it today to find success in the near future.