You have a hot-selling product, you get it sent to Amazon FBA, and the sales are great. However, you get slapped with the long-term storage fees or your product is suddenly in demand but out of stock! It is a pretty unpredictable situation that needs prior preparations; otherwise, your most profitable channels can become headaches.
So, fluctuating demands, multiple sourcing channels, and a complicated Amazon FBA system make tracking your inventory difficult. How can you avoid being out of stock? How do you minimize storage fees? How do you keep making profits? The answer lies within the problem: you desperately need an inventory management solution for Amazon sellers.
What is Amazon FBA Inventory Management?
Amazon offers an Amazon inventory management dashboard for global FBA sellers in Seller Central. It helps sellers track their inventory standing, sales, deliverables, and orders. The dashboard features a performance section that sends alerts when stock is running low to help sellers plan according to demand. You can then arrange your shipments to replenish the inventory based on the timeline.
Using Software for Amazon FBA Inventory Control
Amazon FBA inventory management tools track products from purchase to delivery. They assist you in making important decisions about how many units you need, the ideal inventory levels, when to place new orders, and which products to dispose of. A good inventory management tool can help you manage your business more effectively by providing you with a realistic view of the stock you have on hand for sale.
With your Amazon FBA inventory management tools for arbitrage, you can quickly see what items you have on hand. This will help you keep important metrics like the number of units in stock, the amount of shelf space available, and the exact position of each product in the storage, etc., at the tip of your fingers.
Benefits of Inventory Management Solutions for Amazon Sellers
Maintaining an inventory using software guarantees you always have the necessary supplies and stock to satisfy customer demands. Having an effective inventory control can lower the likelihood of understocking, which can result in loss of income, or overstocking, which can raise the cost of holding. Here are some more benefits of Amazon inventory management:
Warehouse Cost and Cashflow
Inventory management can help you utilize the maximum storage space with a low risk of stranded or dead inventory, improving the overall efficiency of your operations. Keeping an eye on your inventory sales ratio can help you understand the rate at which your inventory is turning into sales. Further, this will allow you to make better purchase decisions, such as buying the right amount of products at the right time.
Increase Satisfaction
When you have an accurate inventory, it helps you prevent misplacements, overstocks, and out-of-stock products. Not only this, it also lets you optimize your storage, replenishment, and warehouse layout. All of these can lead to better performance and less time spent restocking.
Customer Experience
Order errors, shipping delays, and out-of-stock items can annoy customers while adding damage to your reputation. Using an inventory management solution will always keep you up-to-date and stocked for any situation that may arise.
Dead and Aged Stock
“Dead Stock” or “Inventory Aging” are the terms used to describe products that are not selling or not selling at their full retail in your warehouse. These products can just sit around forever and eat up your shelf space with time. However, if you have an inventory management tool, then it can assist you in preventing such situations. You will be able to track sales velocity and precisely anticipate demand, as well as optimize your restocking. If you are afraid of your products failing then you might find this article helpful.
Early Detection
Your inventory management solution will periodically audit your inventory so you can rectify any errors or discrepancies. However, you should still evaluate your products on arrival and cross-check to verify the actual inventory against the system records to detect any problems beforehand.
End Note
There’s no end to learning or inventory management. So, by leveraging Amazon FBA Arbitrage Software for Inventory Management, you can maintain the seamless operation of your business while cutting expenses and raising customer satisfaction. Contact us at [email protected] if you have any queries about Amazon inventory management using Arbitrage.
