If you’re an Amazon seller, then you know that inventory management is key to success. Maintaining proper inventory levels ensures that you never run out of stock (or incur the dreaded stock-out), and that you’re able to take advantage of sales opportunities when they arise. Inventory management can be a complex task, but it doesn’t have to be. By following a few simple best practices, you can streamline your inventory management process and keep your business running smoothly. Here are some tips for Amazon inventory management:
1. Know Your Sales Velocity Your sales velocity is the number of units of a product that you sell over a period of time. This is one of the most important factors to consider when managing your inventory, as it will help you determine how much stock you need to keep on hand at all times. To calculate your sales velocity, simply take the number of units of a product that you sell in a given time period (week, month, etc.) and divide it by the total number of that product that you have in stock. For example, if you sell 10 units of a product in a week and you have 100 units in stock, your sales velocity is 10%.
2. Use an Inventory Management System An inventory management system is a software tool that can help you keep track of your inventory levels, sales, and other data. There are many different inventory management systems available, so you’ll need to find one that’s a good fit for your business. A few things to look for in an inventory management system include: -The ability to track multiple warehouses and locations -Inventory forecasting and reordering features -Real-time data and reporting -Integrations with your other business software
3. Keep an Accurate Count of Your Inventory It’s important to know exactly how much inventory you have on hand at all times. This seems like a simple task, but it can be easy to lose track of your inventory if you’re not careful. One way to keep an accurate count of your inventory is to perform regular physical inventory counts. This is when you physically count all of the units of a product that you have in stock and compare it to the number that your inventory management system says you have. This is a good way to catch any errors in your system.
4. Monitor Your Inventory Levels Closely If you want to avoid a stock-out, you need to monitor your inventory levels closely. This means checking your inventory levels on a regular basis and reordering products when necessary. There are a few different ways to monitor your inventory levels: -Manually: This is the simplest method, but it can be time-consuming. -Set up low stock alerts: Most inventory management systems have the ability to send you alerts when your inventory levels get low. -Track your sales data: Keeping track of your sales data is a good way to predict when you’ll need to reorder products.
5. Develop a Buffer A buffer is a safety net that can help you avoid a stock-out. Essentially, a buffer is an extra amount of inventory that you keep on hand in case of an unexpected spike in demand. Having a buffer can give you some peace of mind and help you avoid the cost and hassle of a stock-out. However, it’s important to strike a balance between having too much inventory (which can tie up your capital) and not enough (which can lead to a stock-out).
6. Utilize Amazon’s Inventory Planning Tools If you’re selling on Amazon, you have access to some powerful inventory planning tools. These tools can help you keep track of your inventory levels, sales, and other data. To access these tools, log in to your Amazon seller account and go to the “Inventory” section. From there, you can view your “Inventory Health”, which will show you how well you’re managing your inventory. You can also use Amazon’s “Inventory Placement” tool to help you decide where to store your inventory. This tool takes into account factors like your sales volume and the cost of shipping to different locations.
7. Stay Organized Last but not least, it’s important to stay organized when managing your inventory. This means keeping your inventory management system up-to-date, monitoring your inventory levels regularly, and having a system in place for reordering products. By following these tips, you can streamline your inventory management process and keep your business running smoothly.