Effectively managing inventory on Amazon Seller Central is key to staying competitive and providing a seamless experience for customers. By optimizing your approach, you can reduce instances of stockouts, prevent overstocking, and keep storage fees in check. Here are seven strategic tips, with expert advice from SalesDuo, to refine your Amazon Seller Central inventory management approach.
1. Ensure Precise Forecasting with SalesDuo
Accurate forecasting is the backbone of successful inventory management. SalesDuo offers advanced forecasting AI tools that update quarterly, adapting to evolving market trends and sales patterns. This responsive forecasting method aligns your inventory levels with demand, minimizing the risks of stock shortages or excess stock.
SalesDuo’s forecasting process incorporates:
- Historical Sales Data: Evaluates past sales to project future demand.
- Category Trends: Tracks shifts within your product category to stay ahead of customer trends.
- Quarterly Updates: Adjusts forecasts every three months to reflect current data, ensuring alignment with real-time demand.
By refining forecasts regularly, you can maintain optimal stock levels, reducing the risks of both overstock and stockouts.
2. Optimize Inventory Planning with SalesDuo’s In-Depth Review
With a robust forecasting strategy in place, the next step is to plan inventory based on real-time data insights. SalesDuo assists sellers in optimizing inventory in line with Amazon's recommendation of maintaining a 22-week inventory utilization ratio, balancing stock levels with minimal storage costs.
SalesDuo’s key metrics include:
- Sell-Through Rate: Analyzes how quickly products sell to guide restocking decisions.
- Current Inventory Levels: Reviews existing stock at Amazon fulfillment centers to ensure alignment with expected demand.
- Inbound and Reserved Stock: Considers items in transit or reserved but not yet available for sale.
This data-driven planning approach keeps your inventory balanced, preventing both excess stock and stockouts, all while controlling costs.
3. SalesDuo’s Continuous Tracking of Sell-Through Rates and Stock Levels
Consistent monitoring of inventory performance on Amazon Seller Central is essential for long-term success. SalesDuo monitors your sell-through rates and overall stock positioning to ensure inventory is moving efficiently, avoiding extra storage fees and product stagnation.
SalesDuo’s tracking methods include:
- Regular Monthly or Quarterly Reviews: We check product sales performance to identify any needed stock adjustments.
- Proactive Strategy Adjustments: We refine inventory strategies based on real-time sales data to help you maintain the right stock levels.
Through diligent tracking, SalesDuo ensures that your inventory remains balanced, reducing potential fees tied to unsold or slow-moving products.
4. Use a Dual-Fulfillment Strategy: Rely on FBA Primarily, with FBM as Backup
While Fulfillment by Amazon (FBA) is often preferred for its convenience and swift shipping, it’s wise to have a backup plan. Fulfillment by Merchant (FBM) can serve as an alternative during unexpected demand spikes or FBA stock shortages.
This approach provides:
- FBA for Main Fulfillment: Meets customer demand efficiently with Amazon-backed shipping and service.
- FBM as a Secondary Option: Allows order fulfillment from your warehouse in case of unforeseen demand or FBA shortages.
This dual-fulfillment method gives you the flexibility to continue fulfilling orders under challenging circumstances, safeguarding against stockouts.
5. Track Returns and Customer Feedback
Returns can significantly impact inventory management, especially when frequent returns lead to Amazon’s return processing fees. Monitoring returns and addressing root causes can help minimize them, boosting customer satisfaction.
SalesDuo’s return management support includes:
- Analyzing Return Reasons: Uses data to understand why returns occur, whether due to quality issues or incorrect descriptions.
- Improving Listings: Ensures product listings are accurate to reduce customer dissatisfaction.
- Addressing Product Quality: Works with suppliers to prevent defects, reducing return rates.
Lowering returns helps maintain a healthier inventory balance on Amazon Seller Central and minimizes disruptions from excessive returns.
6. Use Promotions and Outlet Deals to Clear Inventory Over 180 Days
Stock that lingers in Amazon’s warehouses for more than 180 days can lead to costly storage fees. To avoid these, it’s wise to clear out older inventory. SalesDuo advises using discount promotions or enrolling products in Amazon’s Outlet Deals program to help move older items and avoid extra charges.
Effective strategies include:
- Discount Promotions: Offering time-limited discounts to drive sales of older inventory, ensuring quicker turnover.
- Outlet Deals: Leveraging Amazon’s Outlet Deals program to attract deal-seeking customers and move slow-moving items.
By utilizing these promotional tools, you can avoid long-term storage fees and keep your inventory fresh.
7. Boost Inventory Movement with Targeted Advertising
Advertising is an excellent way to increase product visibility, drive sales, and improve inventory turnover. Running targeted ads helps you sell products faster, reducing storage costs and enhancing your sell-through rate.
SalesDuo can assist with ad management on Amazon to:
- Increase Product Reach: Use Sponsored Products and Sponsored Brands ads to engage a larger customer base.
- Clear Slow-Moving Stock: Target specific ads for overstocked items to balance inventory.
- Maximize ROI: Focus ad spend on campaigns with high returns to maximize profits while maintaining inventory levels.
Strategic advertising fuels growth and improves inventory flow by accelerating product sales. Our detailed guide explains more about Amazon Advertising.
Conclusion
Optimizing your Amazon Seller Central inventory management is vital for profitability and competitiveness. We at SalesDuo, provide customized solutions, focusing on accurate forecasting, regular inventory review, and continuous monitoring of stock performance. Implementing these tools and techniques ensures a balanced inventory, minimized fees, and consistent product availability for customers.
From proactive forecasting to a flexible dual-fulfillment approach and promotional strategies for aging stock, these seven tips offer a structured way to enhance your inventory management. Adopt these practices to scale your business while keeping inventory management cost-effective and efficient. For advanced help, get in touch with us.
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About the Author
Giridhara Prasad is an Associate Director at SalesDuo and a startup enthusiast. With extensive expertise in e-commerce, this ex-Amazonian has been instrumental in driving success for businesses worldwide. Apart from his passion for creating innovative sales strategies and optimizing online retail experiences, Giri finds interest in watching and playing sports, including starting to play pickleball, traveling, and exploring political science, and philosophy.
