- by eSellerHub
Amazon inventory management is more imperative than to be underestimated. New sellers entering the market sometimes do get tangled up in Amazon listing optimization. Else they lose sight of lining up crucial inventory management. A new seller on Amazon must learn all the information quickly; however, they can still ignore a bit of the fundamental. It is the main challenge of venturing into a new E-commerce business, which indeed is a tough one to crack.
It is equally essential to do product listing SEO accurately, discovering different marketing paths, and Amazon FBA inventory management. Running out of inventory could be one of the worst things to happen for a new seller. It can even result in an Amazon ban if you run out of inventory too regularly.
Importance of Amazon inventory management
It is different to sell on amazon than to sell in a brick-and-mortar store, where you only lose the sale if you run out of stock. But on the Amazon platform, it isn’t straightforward. If you have zero stock, you lose the sale, and your product ranking declines and drop behind in the SERP.
The total effort you put into optimizing SEO, the good reviews, making sales climb up the SERP ladder will go waste. Your product page will display as unavailable when you are out of stock. Therefore it’s all going to be tough and challenging to develop your eCommerce business.
Ways to effectively handle Amazon Inventory Management
Now that you are aware of how important it is to manage your Amazon inventory, here are a few pointers on how effectively you can manage that.
Right product Pricing
Deciding what to price your products for plays a significant role in inventory management and your business. Setting a low product price or a discount price is a refined marketing strategy. It works mainly while flash sales launch to increase SERP rankings. Also, the number of quantities can be altered based on the inventory management tab for the product that is on sale. It can limit the losses and get a better product ranking. Don’t price your products too low either. Price your products right, just sufficient to get a sensible profit margin.
Utilize Amazon Inventory management tools
The best thing to do to escape running out of stock is to handle your Amazon inventory proactively. Amazon seller central has tools that are built-in to guide you with the task. Mastering the tools provided by Amazon is essential and helps a seller to move ahead in business. Later on, you can sign up for third-party inventory management services as per your need. However, initially, it is advisable first to get a hold of your seller central account possessions.
Amazon feels that this is the data that is most important to their sellers, which these tools can access. The inventory management tool helps you with better insights into the data about your products. , you can access the information, and you can download reports to aid you with improved decision making.
Inventory health report
You can access the reports by logging in to your seller central account and checking on reports. The Amazon inventory health lets you view your overall sellable and unsellable volume of all your products. You can obtain the inventory movement information from here. The inventory health report also shows
- The number of units sold in the past 30 days
- Your weeks of cover based on sales on those days
- The least competing price for your product listings
Tracking this data from home is possible by accessing the downloadable report. It helps you to
- Study your current sales velocity
- Know about your inventory health
- Determine the product types that sell at various times of the year
- Plan for the following calendar year.
It is always a safe bet to stock up the fast-moving products in the inventory with the highest demand throughout the year. You could keep the seasonal product’s stock to a minimum quantity. If your account has removal recommendations, you can access the recommended removal report. It also shows the liquidated or removed option before a long-term storage fee is charged. For instance, if your inventory levels are high and stock is selling very slowly, then you must seek a quick solution to increase Amazon sales swiftly to escape this fee.
One best option to avoid liquidated and the long-term storage fee, contemplate holding a sale. It is a great option to avoid possible charges and also to get more Amazon reviews. Make sure you have a good inventory and enough stock to cover your product demand.
Plan inventory orders
Planning inventory is a crucial step for any Seller. Here are some useful pointers to keep in mind.
- Set inventory minimums to avoid your suppliers’ stockouts order immediately when you hit your set minimums to help you from running out.
- Calculate your inventory lead time, which is the time taken for your products to travel from your supplier to you or the Amazon warehouse.
- Check your present inventory, evaluate your sales volume and balance them with the lead times.
- Utilize the Amazon sales coach while ordering a seasonal product, as the previous year’s data is a dependable sales forecasts indicator.
Be an Amazon inventory management pro!
The most indispensable and challenging part of the e-commerce business is managing your product inventory. It is very dangerous to ignore your inventory health. Make use of eSellerhub’s Amazon inventory management software for simplified usage, inventory handling, and better forecasting. You can set a minimum inventory level and be notified of product depletion status and lead times to ensure you don’t stock out. Our custom inventory management software and Order Fulfillment Software are designed to suit individual business needs.
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