How to Effectively Manage Inventory for Your Amazon FBA Business

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How to Effectively Manage Inventory for Your Amazon FBA Business

Few things are more of a let down than falling in love with a product only to scroll to the “add to cart” button and be met with a devastating “out of stock” instead. Or, worse yet, placing an order only to be notified that the item is no longer available. 

You can save your customers a major headache by managing your Amazon FBA business inventory appropriately.

Whether you’re just starting an Amazon FBA business venture or are looking to shake things up, changes to your inventory can mean big paychecks or lost sales. 

That means tracking and storing products efficiently to meet customer demands as soon as possible is essential. There’s no need to hit pause on your profits when you follow the key tips listed below. 

1. Be Sure You Understand Amazon FBA Requirements

No matter what kinds of products you sell on Amazon FBA, there are some basic requirements you need to keep in mind. Ensure you’ve familiarized yourself with all Amazon FBA inventory policies and guidelines to avoid delays and other issues. 

Another note is to pay attention to storage fees and any long-term storage charges that apply to you. Check out Amazon’s inventory performance index (IPI) for your business to get a feel for how you’re keeping up with your inventory and what you can improve on in the future.

2. Predict and Prepare Ahead of Time

Stay one step ahead of the competition by predicting when product sales might dip or rise. This helps ensure you don’t run out of something profitable while also helping you steer clear of dead-end investments. 

Analyze sale data and trend metrics

Look for sales trends and seasonality in product listings. Maybe some products tend to sell better in warmer months while others are on a general upward trend. 

Likewise, make sure you get to know your historical sales data; what seems to be on the rise, what’s stagnant, and what seems to be declining? How does this match up with what you see from other sellers?

Create a product replenishment strategy that works

Don’t wait to restock until you’re almost or completely out of product. Determine when you’ll reorder and how long it will take to avoid dead or stranded stock, low stock rates, or spoilage.

You’ll probably need to leave a few weeks of shipping and processing time before your orders can land in customers’ carts. Schedule inventory replacements thoughtfully and keep an eye on them to make sure everything goes smoothly.

3. Use Inventory Management Tools

Using software that helps track your inventory, sales data, and restocks can help save you a lot of time and stress. 

There’s no shortage of options that fit a range of budgets and contain data-based features to help you stay on top of your supply. Pick a tool that meets your business needs, and check in regularly to stay ahead of the game.

4. Out With the Old, In With the New

Kick products that just aren’t cutting it to the curb to make room for products that will. Keeping excess inventory to a minimum helps you focus your attention on new opportunities to increase your business’ reach. 

You can free yourself of dead weight and help boost existing listings by doing things like:

  • Hosting Sales or Promotions: Make products more appealing by offering them at a discounted price or offering other rewards (such as a coupon, buy-one-get-one deal, etc.) upon purchase. 
  • Updating Product Listings: Refurbish listings with new keywords and trending search phrases to boost exposure to your product and score some more purchases.
  • Noting Underperforming Products: Pinpoint which products to focus on phasing out by keeping a close eye on performance levels over time.

5. Build Strong Relationships With Suppliers

Work with suppliers you trust to ensure your inventory shipments go as planned and tick all the right boxes.

But not all suppliers are created equal; some might fail to keep in contact, might not take the steps necessary to deliver high-quality and undamaged products, etc. 

Know your resources and how to use them to get the best deals and products for your business.

NexDeal Distribution is here for the smart Amazon FBA seller looking for top bulk wholesale merchandise deals at a low price. 

You can check out our daily wholesale deals for a rotating list of exciting new product offerings or download a complete list of our inventory for more selections.

No matter what you choose, NexDeal is here to help you through every step of the process. Our wholesale deals are just one piece of the puzzle, but because we can ship directly to Amazon and help you stay on top of restocks, our service is all you need to take your shop to new heights.

Feel free to contact us today to learn more!