Amazon Inventory Management: Tips You Shouldn’t Miss Out in 2022
Amazon inventory management is critical to the success of any Amazon company. It reduces the chances of two big profit killers: losing sales due to out-of-stock situations and incurring expensive storage costs due to overstocking.
Supply chain problems are impacting companies big and small as the COVID-19 epidemic continues to be unrelenting and unpredictable. Due to the illness, the closure of production facilities, and the scarcity of shipping containers, there have been unprecedented inventory delays, shortages, and skyrocketing shipping prices. And they are undoubtedly having an impact on the company’s growth and profit margins.
Let’s take a closer look at what’s causing the present supply chain issues, how they’re expected to impact the Holiday shopping season in 2022, and how Amazon sellers should manage their sales strategy in the face of these issues.
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What is the significance of Amazon inventory management?
Customers these days are impatient with inadequate inventory management. When it comes to internet purchasing, they have high expectations regarding ease and delivery speed. Consumers in the United States anticipate their purchases to arrive within one to three days after purchase, with 47 percent ready to pay extra for quicker delivery. Online consumers don’t want to wait for items to restock. And the majority of them (70%) would be disappointed if their purchase came late.
If you consistently run out of supply, your consumers will have no option but to buy from your rivals. That will boost their organic ranking as yours falls each day you’re out of stock. If you overstock your goods, on the other hand, you risk tying up money in your company and incurring long-term storage costs if you use FBA.
Consequences of a Poor-Functioning Inventory Management
Amazon is one of the most successful online marketplaces in the world, thanks in large part to its effective inventory management system. This system allows Amazon to track and monitor the flow of products throughout the supply chain. That helps you ensure that items are always in stock and that orders are fulfilled quickly and efficiently.
However, when Amazon’s inventory management system is not functioning properly, the consequences can be severe. Poor order tracking may lead to delayed or missed deliveries. But an influx of cancellations and returns can negatively impact Amazon’s bottom line. To stay competitive, Amazon must ensure that its inventory management system is working at peak performance at all times. Otherwise, Amazon may fall behind its competitors to the detriment of both consumers and shareholders alike.
Use Amazon AFN to Prevent Overstocks
Amazon inventory management can be a bit of a challenge. You want to have a sufficient stock level on hand to meet customer demand, but you don’t want to overstock items and tie up your cash flow. It can be challenging to strike the right balance. Still, it’s essential to manage your inventory in the most efficient way possible.
One of the best ways to avoid overstocking items is to use Amazon’s Amazonas Fulfillment Network (AFN). This program allows you to store your inventory in Amazon warehouses worldwide, and they will ship items to customers as they are ordered. This way, you only need to keep enough stock on hand to cover Amazon’s minimum order requirements. Amazon also offers several tools to help you track your inventory levels and manage your reordering process.
Using Amazon’s fulfillment network and taking advantage of their tools, you can free up valuable cash flow and avoid tying up your money in unnecessary inventory. This will allow you to manage your Amazon inventory better in 2022 and beyond.
Take Advantage of the Amazon FBA Program
As any savvy Amazon seller knows, Amazon inventory management is key to success on the platform. With Fulfillment by Amazon (FBA), Amazon takes care of storage, packing, and shipping for you, making it easy to scale your business. In addition, Amazon provides powerful tools to help you manage your inventory and ensure that you always have the products your customers want in stock. However, it can be difficult to know where to start with so many features and options.
First, take advantage of Amazon’s Restock Inventory report to track your sales and identify which products are selling fast and slow movers. This information will help you decide what products to keep in stock and how much inventory to carry.
Next, use Amazon’s Purchase Order report to track your supplier orders and ensure that you get the best possible price for your products. This report can also help you with demand forecasting so you can adjust your order management accordingly.
Finally, take advantage of Amazon’s fulfillment reports to track your inventory levels and identify potential issues before they become a problem. By proactively managing your Amazon inventory, you can avoid stock-outs and maximize profits and sales.
Monitor Your Inventory in Real-Time
It is more important than ever to stay on top of your inventory levels and pricing strategy in today’s fast-paced business climate. Thanks to the Amazon inventory management platform offered by Eva, this is easier than ever before. Eva’s all-in-one platform is designed with real-time inventory monitoring in mind.
This streamlined platform allows you to get a clear insight into all aspects of your inventory levels and performance. Not only does it help you develop the best pricing strategy for your products. But it also prevents you from getting caught out by unexpected shortages or surges in customer demand. With Eva, ensuring that you are always fully stocked and financially viable has never been easier.
How to Choose the Right Amazon Inventory Management tool?
Amazon inventory management is a key part of running a successful business on Amazon. Many different Amazon inventory management tools are available, and choosing the right one can be tricky. Here are some things to consider when choosing an Amazon inventory management tool:
-What are your specific needs? For example, do you need a tool that can help you with tracking inventory levels, or do you need something more sophisticated that can help you with order fulfillment?
-How much do you want to spend? There are many different Amazon inventory management tools available, and they vary in price. Choose a tool that fits your budget.
-What features are important to you? Some Amazon inventory management tools have more features than others. Consider which features are most important to you and choose a tool that offers them.
Choosing the right Amazon inventory management tool can be essential for running a successful business on Amazon. Consider your specific needs, budget, and desired features when making your decision.
Amazon inventory management is critical to the success of any Amazon company. It reduces the chances of two giant profit killers. That means losing sales due to out-of-stock situations and incurring expensive storage costs due to overstocking.
In addition, supply chain problems are impacting companies big and small as the COVID-19 epidemic continues to be unrelenting and unpredictable. Due to the illness, the closure of production facilities, and the scarcity of shipping containers, businesses have become more critical than ever to have a well-oiled Amazon inventory management system in place.
Eva can help you prepare your business for these uncertain times by setting up an AI-superpowered system that will keep your products on shelves and your profits high.
Contact us today for a Free 15-day trial!