The first challenge of e-commerce: keeping track of inventory.

It can be a nail-biting affair to predict exactly how much product to order or create, without knowing exactly how much people will buy. Too much, and you lose money on overhead. Too little, and you lose money on lost sales and slow fulfillment. How do you strike the right balance?

It’s Q&A Wednesday, and we’re helping one listener find the e-commerce Goldilocks Zone.

This listener runs an auto parts business, which can be particularly tricky to predict. In this episode, we explain a simple formula for deciding how much product to keep on hand, and how to measure the success of your predictions. 

You can never know precisely how much product customers will ask for. But by studying industry patterns, you can make a very educated guess. Click Play!

To submit your questions, visit 100mba.net/q.

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