Last year at this time, retailers were scrambling in every way possible to insure that they would have enough inventory to last them through the Holiday Season. This year, things are markedly different.
Stores that I have talked to are amazed at how quickly their orders are arriving. In many cases, they are also arriving with 80% or more of what they ordered.
While there are significant issues in receiving hot items or newly produced toys, all indicators are pointing towards that this year is much different than last year.
It's important that you have both the right products and the right amount of inventory for this Holiday Season. We have put together a few guidelines to assist you with this.
1) "Cancel inhouse backorders"
One of the most common mistakes that we see is that retailers may have ordered something in January, never received it due to production issues, and then order it again in August. The product then arrives in October, and is essentially double of what the retailer wanted.
2)"Use cancellation dates"
While many orders are shipping quickly, we also have some toys that are taking 4-6 months to arrive. You may not want them to show up on December 10th.
Cancellation dates also help you control your inventory. By freeing up items that are on backorder, you may have extra funds to spend on some surprise best sellers that you have found.
3) "In 2022, it's more important to order frequently, than doing large orders for the whole season"
We have some stores that do a great job of working with us on lots of small/medium sized orders on a regular basis. They are constantly reviewing their sales, and seeing what's trending for them. They are nimble and quick, and can know when to go heavy into an item. Because they are not sitting on unsellable inventory, they have funds do so.
4) Add ship dates to your orders
Last year it was necessary to take in almost every order as an immediate shipment. This year if you did that, you would be overwhelmed with inventory. Spread out your ship dates between now and mid October.
5) The exception to the rule
It's also important to know which manufacturers are the exception to the rule. For instance, we have one vendor that seems to be out of product by mid October every year. It's important by August, that you order for the season with them. Talk with your rep, and find out which vendors you may need to do one large order with now.
We are anticipating that you will receive much of what you ordered in a relatively timely manner this year. That's one major stress from 2021 that I know you will be glad to leave behind.