Inventory management is indispensable for small businesses as it helps in preventing stockouts, ensures accurate recordkeeping, and positively impacts customer service in many ways. The right solution makes the entire process easier and hassle-free.

Amazon inventory management supports businesses in the same way. However, it depends on how you make the most of the management tools, software, and other strategies that can optimize your process and improve your bottom line.

Here’s an article with ten ways to improve your Amazon inventory management.

Top 10 Ways to Optimize Your Amazon Inventory Management

1. Leverage Amazon Inventory Management Software

You must avoid manually tracking and managing Amazon inventory as it is time-consuming and prone to human error. Instead, opt for specialized Amazon inventory management software that uses an automated process to keep track of your inventory in real time and give you insights into orders.

You will also want to utilize tools that add value to your dashboard and connect with other data sources and storefronts connected to your brand. Ensure you invest in customized Amazon inventory management software that helps manage your inventory. It is wise to get a bespoke software system designed by experts such as eSellerHub to get a solution ideal for your business.

2. Understand Your Inventory Turnover Rate

Inventory turnover enables you to identify and resolve issues related to your inventory management. A low turnover rate means low sales and surplus inventory, which indicates you may have to work on your sales strategy. A high turnover rate means your inventory needs to keep up with customer demand. You can predict the turnover rate using an automated forecasting tool to track sales across all platforms and product lines.

3. Find Out Your Supply Chain Lead Times

Supply chain lead time is crucial for your Amazon inventory management as it lets you know the time it will take to receive an order from a vendor. Based on that, it enables you to identify if you need to improve the turnaround times.

Here are some of the strategies you may include: 

Increase your order frequency by placing small or bulk orders and determine the right approach to improve lead times.

Provide suppliers access to sales forecasts so that they can plan.
Order from domestic suppliers when possible.

4. Consider Dropshipping

Instead of stocking inventory, you can opt for dropshipping as an alternative, where a customer’s order is automatically handled by the supplier from packing to shipping. However, you must know the following advantages and disadvantages before making the decision:


  • Reduced overhead costs
  • Low requirement of upfront capital
  • Flexible and scalable


  • Potential of delay in shipping and other supplier errors
  • Loss of control over stock levels
  • Low-profit margin
  • Having to work with multiple drop shippers

5. Keep a Close Eye on Your Inventory

You will receive tons of orders when you implement the right promotional strategy. But this is where you need to be prepared to meet the demand and avoid losing customers to your competitors. Otherwise, your product pages will rank lower and not attract enough customers.

So, it is crucial to keep a close eye on your inventory, consider increasing prices, and pause ads if a specific listing is getting too much attention. Many Amazon inventory management tools enable small businesses to automate the process of rising prices to slow the demand to help you avoid stock shortages without affecting your page rankings.

6. Ensure Efficient Working Between Listing and Inventory

Due to the direct impact of your inventory on how your products appear in the search results, it becomes crucial to optimizing your listings. You can create product listings manually or take advantage of Amazon inventory management software to do it for you. This eventually helps in boosting visibility and get a broader audience ready to make a purchase.

7. Focus on Dynamic Prices

Successful Amazon sellers know that only dynamic prices can move their products. You need to align the pricing with the perceived value, which changes depending on seasonality and demand. Amazon repricing tools can help increase or decrease your prices using predefined rules and algorithms.

8. Have a Fixed Minimum Inventory

Shortage of inventory can affect the opportunities to make sales while letting customers find the product elsewhere. This can affect your credibility and reputation leading your ratings to drop. As a result, your product listing will not appear on the first page.

The right Amazon inventory management software can prevent such instances with better planning. You can leverage the automated inventory management strategy and use real-time data on sales patterns to replenish your stock without facing any shortage issues.

9. Focus on Enterprize Cross-Channel Resource Planning Strategy

While Amazon inventory management is crucial for your business’s success, you must also pay equal attention to building a robust enterprise resource planning (ERP) strategy. On the one hand, you can optimize your inventory management and save time and money.

And on the other hand, you can focus on your business growth, including promotion, customer service, hiring, tech upgrades and more. For this, you must ensure complete visibility into your inventory levels, financials, sales data and other factors affecting demand.

10. Make Customers Your Priority

Customers have high expectations from Amazon, so even a minor error can result in bad reviews. Thus, investing in a robust Amazon inventory management strategy is vital to ensure everything from products and shipping to deliveries is built with a focus on customers. Meanwhile, your efforts should also align with changing consumer preferences, market conditions, and prices.

Get a Customized Amazon Inventory Management Software for Your Business

eSellerHub offers customized Amazon inventory management software solutions for all your inventory-related problems. Our automated inventory management system helps your business grow Amazon sales while improving your bottom line.

Here are some of the biggest benefits you get:

  1. Organize inventory management process
  2. Achieve higher productivity
  3. Automate manual inventory management tasks
  4. Prevent or significantly reduce the chances of stockouts
  5. Update inventory automatically
  6. Get alerts on spoilage
  7. Make price changes
  8. Avoid overstocking or understocking
  9. Enhance customer service
  10. Improve turnover

EsellerHub’s Amazon inventory management tool can provide several benefits that help you avoid situations that can directly impact your business reputation and save a significant amount of money that can go to waste otherwise.

Contact us today to get a tailored solution for your Amazon business. We will be happy to serve you with our years of experience and expertise.

Find out how ESellerHub can help your business grow

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