All You Need to Know About Amazon Inventory Management

All You Need to Know About Amazon Inventory Management

In business, no seller wants to go out of stock and decrease the sale; on the other hand, they will also avoid spending extra money due to overstocking. Being a seller in the eCommerce industry is not an easy task; one of the integral parts which need to be dealt with is Inventory Management. You must manage this part with utmost importance on every platform like Amazon, Flipkart, Meesho, etc.

In Amazon, inventory management is also a crucial part of selling. It would be best if you found the right balance between too much and out of stock. We all know that at the end of the day, good business results from better management and understanding of the consumer’s needs and market.

Today, we will discuss what Amazon inventory management is, its benefits, different inventory management systems, and common inventory issues Amazon sellers face. We will also glance at the best inventory management software in India.


What is Amazon Inventory Management?

From purchasing to selling an item, keeping this track is known as Inventory management. Let us dive deeper into this. Inventory is the stock you, as a seller, are willing to sell. Amazon inventory management is to keep track of customers’ demand and your stock so that you do not get out of stock.

The complete process is quite long and needs to be managed all the time. The extended activity of tracking and storing your goods and meeting consumers’ needs is the whole idea.

What is the Need for a Better Inventory Management System?

More simply, the customers who come to Amazon for shopping are always in a hurry. To be a good Amazon seller, you must assume that your customers are impatient.

As per the data, 68% of people want their product delivered within 0-3 days. Around 70% will be upset if delivery is late or the product is out of stock. Your customers will buy from your competitors when you remain out of stock.

As we discussed above, some problems are shared among all amazon sellers regarding Inventory Management. Now let us understand that too.

Common Problems Faced in Amazon Inventory Management

Getting Out of Stock

The most common problem faced by most Amazon sellers is getting out of stock. It simply means that customers are demanding your product, and you do not have enough to deliver to them. It results in a terrible user experience, and your best seller rank is disturbed when you go out of stock.


It has to be managed in a very organized way; when running short, it just slows down the demand process. You can help this by stopping off-site ads, which are working in bringing new customers to yours. This way, you will retain the old customers and pause the process of adding a new set.

Overstocking the Inventory


In the above case, you don’t want to get out of stock; in this case, you don’t want to store extra inventory. It can levy a high cost of storage for the extra inventory that you have.

If the seller uses Fulfillment by Amazon, this becomes more crucial. This will make you pay heavy fees for storage; Amazon works on a product in and out strategy. If your product is in there for more than 90 days, it will be an extra heavy charge on you.

Stranded Inventory

It is another common issue the seller faces, although it can be avoided. This term is used for those goods which are no longer a part of Amazon’s active listing. It is for sale, but no consumer will be able to purchase it.

This work demands active checks on the dashboards to be on time. Amazon lists the inventory in your dashboard, and you need to be attentive. Keep a check on the seller dashboard allotted to you by Amazon.

How can Inventory management be Done Efficiently?

Maintain 60 Days Supply Chain

This is one of the best ways of managing your inventory, keep a fixed period of 60 days, i.e., two months. Stock the inventory for two months and keep a check on the reports and data on product performance.

Product forecasting can help you determine the future storage numbers of different products. Amazon also provides inventory reports to all its sellers, which you can easily understand.

Reduction of Excess Inventory

This scenario is very common to almost every seller; huge brands sometimes face this issue. There are some easy solutions which can be adapted for this like

  • Running Promotions- In this, you can use running campaigns and provide gift coupons to your customers. You can also run the sale offer of buy 1 get one combo.
  • Creating removal order- If you have an alternate option to store your product besides Amazon, use it. You can remove your inventory without paying hefty storage fees to Amazon.

Control the Demand

As we have discussed, when you are aware of getting out of stock. Lower your demands accordingly, and it can be done by stopping advertisement campaigns and hiking the product’s price.

If you are low on stocks and still the demand is high, it will surely end in order failures. If you want to stay safe from this situation, keep managing the demand similarly.

Using the Best Inventory Management Software in India


Selling on Amazon is hectic work; getting everything in the right place might become hectic for the seller. For this, you can take the assistance of software for inventory management, reducing your stress.

Softwares like eVanik OWS help you to manage the inventory correctly. The tool helps you with centralized inventory management solutions.

Conclusion

We discussed the different aspects of Amazon Inventory Management as we talked about the common challenges faced by the sellers and ways to get rid of them. One thing is particular and standard for every business: customer satisfaction. At the same time, sellers also need to check the profit margins.

Profit margins are directly affected by the different prices which may occur while selling on Amazon, like excess fees for inventory in FBA. Covering all the aspects and getting along with the solutions, a seller must bloom daily with excellent customer service and avoid extra losses that may come in the way of selling on Amazon.

We also discussed getting assistance from the best inventory management software in India, like eVanik OWS, for better business management. To move ahead, sellers need to work smarter rather than working harder.