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5 Ways to Manage Your Amazon Inventory Like a Pro


Inventory management has a huge impact on the growth of your Amazon business. From the dangers of inventory going out of stock to the risk of stranded or overstocked inventory, these can adversely affect sales.

Customer satisfaction depends largely on how well a seller can manage inventory. This makes it crucial for Amazon sellers to note the availability of products while doing business with Amazon. In this regard, note that starting an Amazon business comes with a lot of challenges, and inventory management is one of them.

This article talks about the importance of inventory management and the multiple ways of getting it done. Read on!


What Is Amazon Inventory Management, and Why Is It So Important?

Amazon Inventory includes all the activities related to tracking products, checking availability, and safely storing them in fulfillment centers. By being vigilant about their stock levels, sellers can ensure the smooth functioning of their businesses.

Tracking the Inventory Performance Index (IPI) allows you to improve your inventory score and minimize storage costs. The Amazon automation store provides sellers with an inventory management system that takes various factors into consideration. Some of these factors include the cost of goods sold, shipment time, and Amazon’s data.

While doing business with Amazon, it is vital to keep an eye out for stockouts, which can lead to lost sales opportunities and low customer satisfaction. Overstocking should also be avoided, as it can lead to obsolete inventory and monetary losses.


5 Ways to Efficiently Manage Your Amazon Inventory

In a fast-paced digital world like ours, early deliveries, convenience, and high-rated reviews will ensure business success. There are multiple ways to manage your inventory; some of these are discussed below.


1.  Use Amazon’s Inventory Management Tools and Software

Stay ahead of the competition by using Amazon’s advanced inventory management software. This tool allows you to predict future sales and determine the items out of inventory that your business needs.

This powerful tool helps you prevent stockouts and overstocking by providing accurate information for your Amazon FBA business. Use the management tools, like Amazon Selling Coach, that are available in the Amazon automation store to optimize your inventory levels.


2.  Use Inventory Forecasting to Tackle Demand

Understand that not everything might run smoothly. It is important to stay prepared for potential delays in terms of customs, warehouses, and suppliers.

Consider ordering enough products to maintain stock and utilizing third-party storage or fulfillment centers. Many businesses follow the 60-day inventory rule, which is enough to cover their expected sales volume.


3. Maintain Good Relationships with Your Suppliers

It is important to put effort into building strong relationships with your suppliers. It helps to maintain a good rapport of your Amazon online business with your supplier as they will tend to give your orders a high priority. Establish a mutually beneficial partnership with proper communication and respect.


4.  Have Good Knowledge of Your Inventory Turnover Ratios and Rates

Note down how fast your products are sold and replenished. This is considered to be your inventory turnover rate. Find out the rate by dividing the total sales by the average inventory during a given time period.

Once you know your Amazon inventory turnover rates and ratios, you can focus on optimizing inventory and customer satisfaction.


5.  Master Your Supply Chain Lead Times

The movement of inventory from sourcing to arrival in a warehouse is known as the supply chain. It is important to know your supply chain and the time it takes for the stock to arrive. This data will help you avoid sourcing and receiving your inventory at the wrong time.

Sellers will be able to avoid ordering too much and ordering too late with the help of this supply chain information.



By paying extra attention to inventory management, sellers can maintain a healthy balance between demand and supply. Keep the above-mentioned tips in mind while monitoring and planning strategies for your inventory.

If you’re looking for some extra help, Shipyaari might be a great choice for your business. It provides a user-friendly dashboard using which sellers can check shipment tracking, return management, and more.

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