Things To Note About Amazon Inventory Management

Are you looking for ways to improve your Amazon reselling career? Worry no more. We’ve got you!

Before you even think of anything, your products must be on your priority list. Why? because this is your only medium for your customers. If you deliver a crappy packaged and defective product, you can expect poor reviews. You can then say goodbye to your ranking and potential customers.

It doesn’t matter if you’re a newbie or experienced in this field. This is a competition and it only takes hard work and strategy to raise your way. Amazon is generous to provide the necessities for your success. This business may be demanding but it doesn’t have to be stressful. The Amazon Inventory Management is one opportunity that you should not miss out on.

What is Amazon Inventory Management?

Perhaps one of the reasons why sellers love Amazon is because it supports them. Unlike other platforms, Amazon provides features that make trading easier for sellers. One of those is FBA. In a nutshell, FBA, or Fulfillment By Amazon is a service that manages your inventory. It picks, packs, and ships your orders to your customers from their warehouse. This gives a huge relief, especially to foreign traders. FBA is available to all Amazon outlets.

How does Amazon Warehouse Management Structure look like?

Speaking of Amazon warehouse. Did you know that they have 6 types of fulfillment buildings? That’s a lot for a warehouse!

Sortable Center – This is the building where Amazon staff collect, pack, and deliver small-sized customer orders. Toys, clothing, housewares, and the likes. Amazon associates work with Amazon Robotics, making the process efficient to customer demands. This center alone is 800,000 sq ft and has more than 1,500 full-time employees.

Non-sortable Center – With a size ranging from 600,000 to 1M sq ft, this center has more than 1,000 full-time employees. This is where they pick, pack and ship bulky items such as rugs, furniture, equipment, and the likes.

Sortation Center – sortation center is where staff classify orders by address of the destination. They integrate them onto trucks for delivery. |And because this center provides full time and part-time opportunities, they are able to ship orders 24/7.

Receive Center – This is the reason why Amazon is able to take in large orders. They sort the types of inventory that they expect to quickly sell, then hand it out to the designated center. They also accept full-time and part-time jobs. This center is 600,000 sq ft.

Delivery Center – This is the station that prepares orders for delivery to the customer’s doorstep. Also called as last-mile delivery.

Specialty Center – This is an additional center that handles specific categories of items. They also labor during holidays, efficient customer service.

Why is having Inventory important for Amazon Management?

Inventory is essential to any business there is. As an e-commerce site, your inventory helps with Amazon supply chain management. Because if your stocks are well managed, it will lead to positive feedback and easy trading. You never want to have a rushed out of stock sign on your products. Do you think customers wait for your product to restock? No. They will go directly to your competitor. Worse, you will lose your organic search visibility and drop your ranking. This is because Amazon removes out-of-stock listings from its search results.

In the same way, you don’t want to have too much stock. A stagnant inventory will do you no good and will actually cost you money. FBA conducts an inventory clean-up every 15th of each month. Items that have been on their fulfillment centers for more than 181-365 days will cost you $3.45- $6.90 per cubic foot. Plus a minimum fee of $0.50 per unit per month. Managing your stocks is crucial to your business.

Getting Started with Amazon Inventory

Now that we’re aware of the benefits of having inventory management, we can now set about.

Set up an account on Amazon Seller Central.

The FBA option is only available to those with an Amazon seller account. So after you’ve set up your account, make sure to choose the FBA.

Make your product listings.

This is pretty much self-explanatory. you can either do this manually or get an inventory management software. Manual inventory can only be good if you have a small number of products. A large number of products is hard to manage by yourself.

Make your products ship-proof.

You must remember that you feed off to the positive reviews of your customer. Make sure that your products would reach your customer intact and fully-functional. This will result in good customer feedback and increase your seller rating. Shipping and packaging materials are available at Amazon prep and shipping supplies. You can order and it will be delivered to your address.

Ship to Amazon’s fulfillment centers.

You will now ship your items to the Amazon warehouse. Choose a courier that will deliver your products to the warehouse successfully. Or better yet use a tool to track your supplies and ensure that they reach the warehouse.

Delivery to customers.

Amazon’s FBA offers fast and free shipping for Amazon Prime customers. Your products are carefully picked, packed, and delivered. This is where you earn your money as your customer orders. Amazon Inventory Management allows the customer to get updates about their order by tracking code.

Office Customer Care Support.

Even after you make a sale and get your money, it does not end here. Amazon emphasizes the importance of customer relationships. This is what FBA’s back-office customer services are for. Customer Service Team is available 24/7 throughout the year. They are involved with refunds, returns, tracking, and other inquiries on the products.

Final Takeaway on Inventory Management

Effective inventory management ensures your success in the Amazon business. While most sellers are obsessed with the profit, you should give more concern to your customers. And that shows how you manage your products to bring smiles to your customers. Again if your customers are happy, you don’t even have to sweat for profit.

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