Top 4 Benefits Of Holding Extra Inventory 


CommPRO Editorial Staff

The importance of holding extra inventory and managing it cannot be denied for businesses, especially for e-commerce and online businesses. It has a great influence on your business’s ability to operate profitably. As the business grows, the warehouse space also expands and so does the inventory. 

Holding extra inventory benefits your business in many ways. If you are a new business and don’t have much knowledge about inventory management, try to learn the techniques on how to improve inventory management and stay in the market as a competitive business. 

Protection Against Order Delays

Sometimes the demand for your business products spikes higher. For some items, the demand may get too high in a particular season such as during winters or Christmas times the demand for warm clothes, cakes or cookies, and especially decorative material is more than the casual days. 

If you don’t have extra inventory, you will be considered as the business that runs out of stock every time the customer approaches you for those products. Or this can also be the case when a customer gives you an order for those products, you may assure them the delivery of that product within a certain period but in the end, due to the poor inventory management and or low inventory level, there will be a delay in orders and eventually, customer complains and negative image of your business. Holding extra inventory will save you from the trouble of delayed orders. 

Repeat Customers

When customers approach you for a particular product of your business and they know that you are out of stock every time they need your products, there is a high chance that they will ignore you for future purchases and become a regular customer of your competitor. Holding extra inventory means fulfilling customers’ demands on the go and retaining them as your most visited customers. 


Fully stocked shelves contribute to the effective promotion of your business. Customers passing by your shop seeing extra stuff laying on the shelves will definitely enter your shop and have a look around and eventually make a purchase. A fully stocked store setup plays an important role in keeping customers around and getting them back to your store. 

Saves time and money

Purchasing raw material in bulk saves you the extra cost of purchasing it alone. Proper inventory management and holding extra inventory save you both time and money. For example, when a customer gives you an order, if you already have it in your stock, you will just need to take it out and get it ready for delivery, on the other hand, if that product is not available, you will purchase raw material and then give it to the manufacturer and from the purchasing to the manufacturing phase, it will consume a lot of time and add extra cost for a single piece.

 If you have everything already restocked, you will be saved from this hassle and will eventually save your money and as well as your time.