When your e-commerce business sells products on the Amazon platform, managing your stock levels is vital to keeping sales numbers up. If you do not handle your stock levels correctly, it can lead to lost sales, additional storage fees, and a host of other issues for your business.
There are some tips below to help you control your stock levels when selling on Amazon that can help keep your business streamlined and ensure steady sales of your products.
The Importance Of Stock Control
As an online retailer, it is vital to use strategies for Amazon inventory management to control your stock levels accurately when selling your products on Amazon. When using Amazon Fulfilment (FBA), having too much stock will increase the storage costs that the company charges you, and these fees can soon add up. On the other side of the equation, running out of stock can mean a loss of sales, disappointed customers, and a lower ranking for your products in the Amazon search results. Running out of stock can also harm your Seller Performance Metrics, affecting your ability to win the Buy Box, essential for maximising your sales.
Tips For Controlling Stock Levels
Regularly Monitor Sales Data: Monitoring your sales data using your chosen tool or analytics can give insight into the best time to replenish your stock. You must analyse your sales trends accurately to optimise your business, which can help you predict future product demand and ensure optimal stock levels.
Set Reorder Points: You should also set reorder points for all the stock you sell on Amazon to ensure your products do not run out of stock. A reorder point is the stock level at which you must place a new order to ensure you do not run out of stock, and you must also consider the delivery time. If you sell ten products a day and it takes 14 days to deliver the new stock, you will want to set your reorder point above 140 units.
Utilise Inventory Management Software: There are lots of different types of software that you can use to control your stock levels and help you predict demand for your products accurately. There are various options for inventory management software you can use, such as:
- Cin7
- Ordoro
- Sortly
- Zoho Inventory
- Katana
- inflow
- Fishbowl Inventory
Use The Amazon Software: As a seller on Amazon using FBA, you can also have access to the automated forecasting tools that the platform offers. These tools can help you predict future demand for your products by looking at the sales history and using AI to predict future sales with a decent level of accuracy. However, always ensure you cross-reference these predictions with your own data and analysis, especially if your target market has unique variables that the Amazon algorithm might not pick up.
Streamlining your stock control processes can significantly help your business and ensure your products are never out of stock. It can also help boost your overall profits and increase confidence in your brand, ensuring that customers know your company is reliable and the go-to name for their desired products.
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