May 23, 2025

How to Reduce Amazon Restock Limits and Improve Inventory Turnover


How to Reduce Amazon Restock Limits and Improve Inventory Turnover
 
Restock limits and slow-moving inventory can be a real challenge for many sellers. A few practical tweaks and strategies can help you gain better control over your stock and keep your business running smoothly.

Clear Slow-Moving Inventory Through Strategic Actions

Running regular inventory audits reveals which products haven't moved in 6 months, letting you compare storage costs against actual revenue. Your quarterly reviews highlight what's moving and what's not, giving you real data to make better decisions. The Amazon Inventory Performance Dashboard pinpoints items needing attention, making Amazon FBA inventory management more efficient.

Product bundling transforms slow-moving items when paired with your best sellers. Creating seasonal bundles puts your products right in front of shoppers during peak times, while small bundle discounts increase overall purchase value. Free shipping on bundles attracts more buyers, and combining complementary products boosts perceived value.

Time-sensitive deals create buying urgency that moves inventory quickly. Multi-unit pricing tiers reward buyers for purchasing more, helping clear stock faster.

Boost Sales Performance Through Metrics Tracking

The IPI score depends on key factors like excess inventory percentage and sell-through rate. Your 90-day sell-through rate needs to stay within Amazon's preferred range on the IPI graph. Targeted sponsored ads and refined keywords can improve your sell-through rate significantly. Removing underperforming items reduces excess inventory and strengthens your score.

PPC optimization requires both performance focus and profit awareness. Adjusting bids and campaign budgets drives sales velocity and organic rank. Concentrating ad spend on proven performers maximizes return on investment by increasing visibility for your strongest products.

Master Your Storage Space Utilization Limits

Calculate minimum inventory by subtracting normal consumption times delivery time from your reorder point. Maximum inventory equals your reorder point plus reorder quantity, minus minimum consumption times minimum lead time.

Schedule removal orders before peak storage fee periods to reduce costs. Automated removal settings handle inventory disposition based on your preferences. Price thresholds for removals help control ongoing expenses.

Regular aging inventory analysis helps optimize Amazon inventory and prevents storage fee buildup. Monitor aging reports to identify issues early in the cycle. Quick promotional actions on slow movers prevent deeper discounts later. Taking action based on aging reports reduces long-term storage costs.

The Recommended Removal Report identifies items approaching the one-year storage mark. This helps you manage inventory before additional fees apply.

Fix Your Inventory Turnover Rate Problems

Calculate inventory turnover by dividing cost of goods sold by average inventory value. For instance, $200,000 in COGS divided by $50,000 average inventory equals a turnover ratio of 4. Higher ratios indicate more efficient inventory management. Units sold divided by average units on hand provides another useful measurement.

Advanced forecasting tools like ARIMA and SARIMA predict seasonal patterns accurately. Neural networks and random forests analyze multiple data points for precise predictions.

Set reorder points by multiplying average daily usage by lead time, then add safety stock. Track maximum and minimum daily usage patterns. Historical supplier data provides accurate lead times for planning.

Build Better Supply Chain Relationships

Automated inventory management reduces lead times and streamlines order processing. System automation minimizes errors while accelerating fulfillment. Clear delivery expectations strengthen supplier negotiations.

Evaluate backup suppliers based on quality standards and production capacity. Develop a scoring system measuring cost, delivery speed, and compliance ratings. Regular performance monitoring maintains quality standards and reliability. Multiple supplier relationships across regions protect against supply disruptions.

Final Thoughts

Implementing these strategies could simplify your inventory processes and speed up sales cycles. Adopting these measures might set your operations on a smoother path, lowering expenses and boosting profit margins.

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