Either because of the types of products you sell, traits inherent in your industry, or your past business history, your company has been relegated to the category of “high-risk business.” 

While this status involves elevated per-transaction costs and potential additional contractual obligations, it also means that you will be working with a high-risk merchant account provider with special expertise in your industry and the particular challenges it faces. 

As the holiday sales rush approaches, it’s time to stack the deck in your favor to ensure that your inventory quantities and procedures are optimized.

Shield your business from chargebacks.

One of the factors that determines a retailer’s high-risk business designation is the average number of chargebacks they are deemed likely to encounter. The term “chargeback” refers to credit card disputes that a customer files with their bank or card company without first attempting to resolve the issue with you. 

These situations can result in time-consuming back-and-forth discussions and significant costs for you as a merchant, both in lost products and in time wasted. If you experience an excessive number of chargebacks, you might even be forced to pay financial penalties or, in the worst-case scenario, have your payment processing services account closed altogether.

Your point of sale system has tools that can help to minimize chargebacks. 

For one thing, the ability to obtain a complete snapshot of your entire product supply in real-time assists you in avoiding running out of items that people are demanding. 

It also helps to ensure that orders are fulfilled accurately, enabling people to get exactly what they paid for and thus cutting down on the number of returns and disputes.

Accurately forecast demand.

The products your high-risk business sells are frequently very popular and in high demand. This underscores the importance of using your POS solution’s numerous inventory features. 

Start by harnessing previous holiday sales data to learn which items were bestsellers, which generated the highest profits, and when or if you ran out of merchandise.

Then take a long look at other sales analytics. Specifically, focus on what products have trended in the past few months and which seem to be dwindling in popularity. 

Paying attention to social media is another good way to remain abreast of current trends in your industry. Use the insights you gain to order proactively and intelligently.

Contact suppliers in advance.

Since your merchandise is very much sought-after, it is crucial that you configure your POS system to optimize the ordering process. As soon as your system notifies you that you are running low, get in touch with the vendors with whom you partner. 

This will maximize the chances that you will never run critically low during what are often the busiest sales weeks of the year.

Mount intelligent marketing campaigns.

Finally, use your inventory management tools to take a real-time snapshot of the merchandise you have on hand. Then coordinate your promotions and social media blasts with this information in mind. 

Connecting these two vital elements will help you to move the inventory that you actually possess right now with limited attention to less crucial merchandise.

Succeeding in a high-risk industry can pose even more daunting challenges. However, planning ahead and keeping a careful eye on the products you have in stock as well as the evolving demands of your customers can enable you to have a very merry – and profitable – holiday sales season this year.