October 16, 2024
Effective Strategies for Managing Amazon Inventory

Here are five effective strategies for managing Amazon inventory:
1. Shoot for a 60-day supply
Every product sells differently, but a general rule of thumb for Amazon sellers is to keep a 60-day supply of inventory on hand. You can monitor this by looking at Amazon’s inventory reports, which will show you your sell-through rate for the last 90 days. You’ll want a score of at least two–anything below that means you’re overstocking.
2. Find ways to sell off extra inventory
If you do find yourself with extra inventory on hand, especially if you’re dealing with seasonal products, then consider ways to sell off the extra product to make room for something else. These can be one-time promotions, limited-time deals, or even donating your products to charity organizations to write it off on your taxes. These will all help offset what you would be paying in long-term storage fees.
3. Coordinate your advertising campaign with inventory levels
Your listings can be negatively affected if you run out of stock, so try to avoid that at all costs. Issues with the supply chain and other unforeseen events happen all the time, but you can find ways to reduce your sales without fully running out. One way is to temporarily raise your price as well as pause any current advertising campaigns until you’ve had a chance to order more product.
4. Avoid stranded inventory
One common issue that affects a lot of sellers is something called “stranded inventory,” which refers to inventory that is stored in Amazon’s warehouse but unable to be sold. This bug can be easily fixed with the “Fix stranded inventory” tool on Amazon Seller Central. You will have to periodically check that section yourself, however, as Amazon does not notify you directly in the event your inventory becomes stranded.
5. Use Amazon FBA
Fulfilled by Amazon (Amazon FBA) is a great service that relies on FBA prep centers to handle all your inventory. Instead of having to monitor your goods yourself, you can rely on an FBA prep service to package, store, and ship your goods. This is a great way to take advantage of scalable warehouse space without worrying about running out of room for your products. It also leaves you more time to focus on ordering products and growing your business, lowering the possibility that you’ll mismanage your inventory.
Inventory management requires frequent attention and some creative maneuvers. FBA prep centers and tools from Amazon Seller Central can help you maintain profitability while freeing you up to focus on your business.
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