How Amazon Manages Its Inventory Even During Difficult Situations?

Amazon is the most popular e-commerce company of present, and the central feature that came to the rescue is when the company launched Fulfillment by Amazon (FBA) in 2006. This feature monetized its implausible logistics network to benefit small business owners from a big corporation’s network hassle-free. There are a lot many factors that go into effective managing of Amazon’s inventory management, and let’s split it down for you.

Own Warehouses and a Significant Part of Amazon Inventory

Many retailers don’t possess their warehouses, no matter physical or online stores. The majority of their products are stored in either leased or rented warehouse space. Third-party logistics companies are hired to ship the goods and fulfill orders to customers or respective retail stores.

As far as Amazon is concerned, this isn’t a problem as most of the products sold on Amazon’s platform are stored in its enormous amount of space. By the end of 2018, Amazon had 288 million square feet of storage space, including its warehouses from various locations.

As Amazon focuses on scalability and customer satisfaction, they understood that e-commerce’s greatest challenge is to meet consumers’ wishes to get their products instantly, like in a brick and motor store.

Amazon’s Solution for Speedy Delivery

Amazon always focuses on reducing its delivery duration continuously. Amazon users have become used to the two-day delivery system or even same-day delivery, which has become a great challenge for retail users.

Amazon has managed to shine apart from other e-commerce retailers by providing fast shipping by:

• Investing in the best delivery system to offer the best customer experience possible
• Shorter and quick delivery strategies that have now become a standard
• Efficient transportation and warehouse management
• Finding the right items inside the warehouse with an automated order picking process enables them to ship it out to customers swiftly and accurately.

Inventory Management Done by Amazon Fulfillment Centers

Amazon manages its trillion-dollar business not through using spreadsheets but by using the top-notch inventory management system. It is responsible for keeping its entire processes running smoothly. This sophisticated system makes it possible for embracing a chaos-free operation.

Amazon fulfillment centers are not sectioned off but are brought together and handled smoothly. The warehouse or storage space is not sectioned like a consumer electronics section or a kitchen appliances shelf. So when a shipment full of batteries arrives, the associate doesn’t search for the batteries section on a warehouse map and then move over to that particular section. Instead, on the arrival of the goods into a fulfillment center, the associates put them in the nearest space wherever it is available. It makes it easier for Amazon to deliver goods quickly to its customers.

Ways to Manage Your Amazon Inventory As An FBA Customer

Here are some of the ways with which you can use FBA and move your products smoothly throughout the process. It is also essential to know and understand the prepping, labeling, and packing requirements of the company.

• Using automated package type selection algorithms ensures that you put the right goods into the right box to adjust shipping costs.
• Verify that the goods to be sent are well-packaged and are e-commerce ready.
• Never tape nor band multiple boxes together.
• Shipping boxes should only have shipping label and no other scannable barcodes
• Ensure you put the shipping labels over plain surfaces as the chances of the shipping label getting damaged during shipping or while opening the box are high.
• It is best to use packing slips to increase accurateness.
• Use foam, full sheets of paper, or air pillows as packing material for safety from damage.
• Ensure that the case-packed units only have barcodes on the particular units and not on the carton’s outer surface so that several items are not received as a single unit.

So, prepping the goods according to Amazon’s FBA system works wonders for any business owner. It also ascertains that your products are fed into the system promptly.

Final Thoughts

No matter your relationship with Amazon, the eSellerhub can support your entire Amazon inventory management and fulfillment management requirements. eSellerhub offers efficient and feature-filled inventory management software maintaining inventory and managing all your orders without any hiccups. We also offer custom software development and support to meet your unique business functions and operations seamlessly. Reach us for free demo and consultation: +1 408 600 0534