Many sales made through Amazon are through other businesses. It is possible for your business to significantly succeed through selling on Amazon, but there are certain processes that must be learned concerning inventory and fulfillment. Do you run an Amazon business? If so, you will need to find ways to best manage your inventory. Here’s more information:
Manage Inventory through Amazon
Amazon offers software to assist you in managing your inventory so you do not face errors of manual tracking. This software is found within the Seller Central Dashboard and is free to use. Inventory data is given to you so you can understand anything you need to order and how sales are going for your business. Trends will be given as well to forecast for future sales and product needs in your business.
Know Inventory Turnover Rate
Inventory turnover rate has to do with how quickly your inventory sells on Amazon. Understanding this number will help you in understanding how much of an inventory you need to keep in order to keep up with customer demands and needs. You should plan for three months ahead in expecting a certain piece of stock to sell within that timeframe. The Selling Coach software can assist you in understanding numbers such as the inventory turnover rate.
Manage Supply and Demand
If you know you are running a promotion within your business through Amazon, it would be important to stock up on more inventory. If, however, you are experiencing a slower season of business, be sure to limit the amount of stock you have available. This will assist you from losing money either way, so you can deliver goods in a timely manner and so you do not waste your money on ordering too much. If you start to run out, simply increase your prices or end promotions.
Know Supply Chain Lead Times
It is important to understand how long it takes your stock to arrive at your warehouse after ordering. This is the supply chain lead time. Be sure to keep the process as smooth as possible by monitoring progress, remaining in contact with your supplier and have a plan in place if things were to become delayed.
It can be great to want to have your fulfillment needs close-by so you can be sure of what you have be looking at it. This, however, can prove to be very costly to your business. You would have to hire warehouse employees, pay rental fees or even buy a warehouse. There are many options including allowing a third-party to fulfill the goods. Outsourcing is a great option if you want to get goods out quickly and save costs in the long run.
Amazon offers many benefits to businesses who sell through their services. Some of these benefits include the online interfaces provided to assist in following inventory trends. Be sure to keep up with fulfillment needs, supply and demand needs and be sure to understand your supply chain lead times to ensure your products arrive to your customers in a timely manner.
Need help with your Amazon FBA fulfillment? Contact American Warehouse for more information.