Amazon inventory management has never been more important. In the wake of the global pandemic, certain items were selling out and stock was low or non-existent – like toilet paper, hand sanitizer, and disinfectants.
While sellers cannot predict the next global pandemic, there are ways to use metrics to predict supply and demand and to manage inventory supplies accordingly.
There are tools you can use for inventory management so you can learn what times of year you should be stocking what products, and we will outline tools and inventory management principles for you below.
Why do you need an Amazon Inventory Management Tool?
Without a good inventory management tool, you run the risk of running out of stock. If this happens occasionally, you might be ok. But, in general, customers hate when you run out of stock, and you could lose a lot of business in the long-run.
Furthermore, you will actually reduce inventory costs if you use a tool to manage your stock. Having too much in stock is going to cost more in materials and in storage space. And, managing your inventory will also let you minimize inventory losses that occur naturally from things like improper storage, occasional employee theft, or shipping and receiving errors
Consider the types of goods you are stocking as well – if anything is perishable or has shelf-life restrictions like batteries, you will want a good inventory management tool so your inventory does not spoil or go bad.
You would also know which goods to ship next, which matter when certain batteries on the shelf are expiring before others.
So many small businesses have poor inventory management systems, and you could put yourself ahead of the competition just by managing your inventory accurately.
How IO Scout helps you with your Inventory Management?
IO Scout has a strong Amazon FBA tools and a best personal assistant that can help you with all things Amazon related. Available 24 hours a day, 7 days a week, our assistant can help answer all of your Amazon Inventory Management questions. And, while you are using our assistant, you can also ask any other question about anything Amazon related – not just inventory management.
List of Inventory Management Tools to Ease Your Work
There are a lot of inventory management tools available to help you manage your stock levels:
- Bright Pearl – This tool helps you manage everything in one system inventory, orders, customers and even your finances. The software with this tool helps you do more than just inventory management, and you can learn how to grow your profits
- Forecastly – This tool does what the name implies – it helps you forecast future inventory needs, and is great at preventing you from running out of stock.
- Restock Pro – If you want a tool that focuses just on inventory, this is a good option. It is based in the cloud and helps Amazon sellers track inventory and also manage shipments.
Why Inventory Management is Important for Amazon Sellers
All sellers should manage their inventories no matter how many products they are selling or what the products are. There are several important reasons why sellers need to manage inventory:
- Shelf-life expiration dates – this is often overlooked, but if you sell anything with a battery in it, that battery will expire sitting on a shelf. Inventory management will help you make sure the oldest batteries are shipped out to customers first, ensuring you get the most shelf-life out of your products.
- Prevent stock shortages – running out of stock is one of the worst things you can do as a seller, and good inventory management tools will help prevent that
- Having too much product – you also do not want too much on your shelves, as this takes up space, and is redundant. Use inventory management metrics to predict sales and learn how much stock you should keep.
Tips to Improve Amazon Inventory Management
You will want to get to know the turnover rate of your inventory, and understand how quickly you sell your Amazon inventory. This will help you make sure you have the right amount of stock, and you can use historical sales information to accurately understand these numbers.
Don’t forget about lead time. How long does it take the materials to get from their creation or initial sourcing to the time they reach your warehouse? How much time does it take the items to reach the consumer? Do not think your inventory levels are ok because you are waiting on deliveries when those deliveries can take weeks.
Seasonal sales are important to monitor. You are going to sell more wrapping paper at Christmas than in July. You will sell more swimsuits in July than in January. Keep these types of things in mind when you are balancing stock levels and considering what you need to store.
Strategically offer sales and discounts. Sometimes you can offer sales or things like free shipping if you are just trying to get a boost to sales during a slow season. Just make sure you have the inventory to support this, as you do not want to attract new customers only to run out of stock and be unable to meet demands.
Whether a brick and mortar store or an online Amazon seller, all businesses take a little time to get up and running. Building your customer base is most important, and something as simple as running out of stock can ruin the hard work you have put in to establish yourself as an Amazon seller.
Using the right tools and tips can help you manage your inventory diligently, and keep you on the right track at making yourself a top Amazon seller. You can also learn how and when to put products on sale and boost your business, while at the same time carefully managing your stock levels.