When it comes to selling on Amazon, your inventory is your bread and butter. Have to little of a product, and you could leave money on the table. Have a surplus, and you might need to start lowering your prices just to move product. It doesn’t matter what you sell, you will need to find a way to manage and also protect this inventory. Here is more information:
Limit the Quantity
Providing discounts to customers may be disastrous for your inventory. There are a few people who may overdo the invitation and buy hundreds of the same product in order to receive reduced prices. To avoid this problem, set a maximum order quantity on your product listings. It’s necessary that you limit the quantity of units that a customer can buy and not worry about items running out of stock.
Conduct regular audits to review the quantity and quality of your inventory items. Make sure that you’re selling only high-quality, undamaged items and that you’re selling the right amounts based on customer demand. Having too much inventory is a surplus that drains money from your company’s bank account. Having too little inventory is frustrating to customers and causing them to buy from other companies.
Know the Process of Inventory Management
Managing your inventory takes more than counting items in software. There is an entire process with multiple steps that include saving money, spending wisely, reducing errors, etc. Your company must have the right amount of cash flow to begin the process. Additionally, you and your staff have to make predictions about how much inventory to buy based on past and current sales data. You have to analyze order volumes and make sales forecasts to continue making steady sales and profits.
Reduce Inventory Fees
Avoid paying inventory fees for excessive units that consume too much space. Monitor your inventory to see if it exceeds the standard limit. If not, receive overage fees charged for every cubic foot. Decide if you need a smaller or larger storage space based on your past and current sales.
Reorder Only When Necessary
Avoid reordering products blindly when it’s not certain if the quantities are running low. First, review the number of orders being made for your bestselling ASINs. Your most popular items need to be replenished sooner and more often. Then, review each SKU to avoid restocking items that are rarely or never purchased by buyers.
Having too much inventory increases the risks of certain items being damaged. Anyone who crams shopping items into a car knows that some items get broken, crushed or destroyed if placed in the wrong positions. Prevent inventory damages by reducing excessive units of inventory that are packed together in one place. Otherwise, increase the amount of space needed for packing and storage.
Being known for your reliability is one way to ensure your success as an Amazon seller. Knowing how to manage your inventory properly will do just that. For help with your shipping and inventory, contact American Warehouse, Inc.