Easy Ways To Manage Your Inventory in Amazonmikey
Inventory management is one of the critical elements a seller should have in the Amazon business. Want to know how you can manage your inventory in Amazon? Check out our tips below!
What are the practices and techniques I can do to manage my inventory?
1. Use inventory management software
Managing your inventory manually is possible but can be time-consuming. You are also more likely to make errors if you’re doing it all by yourself. By using inventory management software, you are preventing yourself from unnecessary stress. It automates your inventory tasks and ensures that you regulate your stocks. Out-of-stock products have a serious consequence issued by Amazon Policy. This is what you want to avoid and software is the best help you can get.
2. Plan orders with lead times and inventory forecasting
When managing your inventory, you will face challenges. Such as supplier schedules, shortages, sales fluctuations, weather events, and more. Still, you have to be prepared even with the most unpredictable situations.
Lead time is the time it takes your products to arrive when it is ordered. So when you order new stocks, allow enough time before your current stock runs out. This allows you to prevent yourself from over-ordering and ordering too late.
Inventory forecasting is predicting the amount of inventory you need when you place an order. It when you calculate your sales based on factors. Such as historical sales figures, trends, the economy, and many more.
3. Keep good communication with your supplier
You may think this is something off-topic it’s not. Having constant communication with your supplier actually prevents unexpected delays with your order. Especially during peak seasons where you must be most alert. A seller experiences the most fluctuation in sales during holidays. This is where the peak of customer demands is. It is crucial for you to keep track of your products during these times of the year.
4. Be strategic with promotion
Promos like discounts or free shipping can spike your sales. This increases the demand for that specific product. Make sure that you come prepared for this. The last thing you want is a drained stack, backorders, and angry customers. Worse, the low Amazon rank on top of losing potential buyers.
To prevent this, set a specific target amount of promoted items to sell in your inventory. Once you hit the target, remove the promo sign. And increase the price of the remaining stock to avoid running out completely. You are less likely to make a sale at a high price.
5. Keep up with the demands
Don’t get too excited about getting lots of orders. Having many customers will not matter if you cannot keep up with their demands. You will just end up losing them if you don’t play smart. Once you notice that your stocks are at risk of running out, it is time to slow down. Stop your promotions or advertising campaigns. Or you can increase your prices. You may get fewer sales for the meantime but its better than dealing with the hard impacts of an out-of-stock sign.
What makes a good inventory management tool?
As said in the first point above, you will need management software to boost your inventory. Here, we’ve pointed out 4 things that you should look for in a “good” Amazon Seller Central Management tool.
No matter how good a repricer tool you’ve found is, it will not make any difference if you can barely use it. The main reason that you’re using software to manage your inventory on Amazon is for full control. You cannot have control if you struggle to even navigate the system’s what-about. When looking for inventory software, the first thing you should look at is its ease of use. Make sure that you are comfortable using it and it’s simple to learn. Do not sacrifice your time, energy, and money over software that is not worth the cost.
This is a consideration not only for the present but also to prepare for the future of your business. If you’re new, this will hardly matter as you have only an Amazon Seller Central account to concern with. But as you progress in this arena, you will get involved with other E-commerce platforms. With an integrated feature you will be able to keep track of your items with few clicks and using one account. Integration software creates a seamless connection through different platforms. This ensures that you stay organized despite juggling different products on different platforms.
3. Inventory Analysis
Another thing to look out for is the Amazon inventory report presentation. Data is a key player in this business. It has a huge role in tracking your business’ performance and your customers. Besides collecting data, it is equally important that each information is neatly organized. There is no point in having data but don’t understand what it means. How can you develop a strategy if you don’t know what points you should improve in? Again, the manner of how your data should be presented must be organized and easy to understand.
Other than that, the software must also prove the metrics that you need. Giving you the ability to customize reports and check unique insights is a plus.
You also want an inventory software that notifies on out-of-stock items. It may be a small element but definitely lifts the headache off of you.
With many software offered in the market, it’s tempting to buy just about any features you think you need. When it comes to purchasing, have you have to be wiser than ever. You can’t be wasting money on a feature that you do not need. Do yourself a favor and consider the problems that you want the software to solve. Check your business plan and make sure that your purchase will matter long-term. How will the software help in your reaching your business goal and vision? Understand your business first, and let the software correlate with it.
Cloud-based software solutions have made the implementation of inventory management software more affordable. Even so, the price of software plans is still based on the functionalities you want to avail of. For instance, if you want a software to track your stock levels and items sold, you will only pay a few dollars per month. The more advanced the features, the pricier it gets.
This is why understanding your business goals is important. You don’t want to pay a costly plan with features that you will not use.
It is highly advised that you always check for a free trial. This allows you to use the tool for a limited time so that you know if it works for you or not. A great way for you to save dollars.
It’s Your Turn
You have what it takes to be successful as an Amazon seller. Having effective management of your products is a small yet important action that you can do earn your reputation and increase your rankings. Manage your inventory in Amazon with excellence using the above guidelines.