In 2017, the Amazon marketplace generated $118.57 billion, which is 25% more than the $94.67 billion sold in 2016. 66% of the top 10,000 most successful retailers on Amazon use FBA, with sellers using FBA shipping billions of items worldwide.
With this kind of completion, how to do you ensure your reseller business remains competitive?
Staying organized is key to running a successful Amazon reseller business. Use this guide to structure your Amazon Inventory Management system.
How to Improve Inventory Management Systems
A well managed Amazon inventory management system ensures that you never run out of stock, hence, keep your customers satisfied. To help you realize this benefit and others, we look at ways you can improve your inventory management system.
Get a Better Understanding of Your Supply Chain and Leads
This means understanding the movement of your products from the time they leave the source up to the time they reach your warehouse. This information helps you key out who, what, where, and when involved in the sending, picking up, and storing your Amazon inventory.
Understanding the manufacturing and delivering schedules of your suppliers keeps your supply chain running smoothly.
Time Management is a Key Factor When Restocking Your Amazon Inventory
Having your goods on FBA reserved inventory can hurt your business since the products are in stock but available on a later date. This means that your customers will have to wait longer for their orders to be delivered.
Minimize the risks of having your goods in reserved inventory status by considering the following time management factors when stocking your inventory;
Choice of shipping method- determine where your supplier is located and the different shipping methods available. For instance, if your supplier is based in China, you have three shipping options; air freight, air express, and by sea. From these options, choose the most appropriate, depending on the urgency of your inventory.
Extra-time allowance- when restocking, you need to consider the time it takes the products to reach the port in China, custom inspection when it docks in the U.S.A, and further transportation to the Amazon warehouse.
Times of the year- during the busiest times of the year such as the black Friday, shipping usually takes a longer time. Also, consider the Chinese calendar where the entire country practically shuts down on February for New Year festivities.
Make Use of Amazon Inventory Management System
Using Amazon inventory management software enables you to automate all your inventory management tasks. The system allows you to minimize errors and ensures you have enough stock throughout the year and not excess inventory. Most retailers using this inventory system report 40% increase in inventory efficiency.
Familiarize with Your Inventory Turnover Rate
Inventory turnover rate refers to how fast you sell your products on Amazon. By determining your average turnover rate, you can estimate the amount of stock needed to maintain enough stock levels between shipments. With the information, you also avoid cases of overbuying or under-buying when restocking your inventory.
Build Your Reputation by Practicing Patience and Good Inventory Management
Earning the reputation of a good Amazon seller doesn’t happen overnight; it needs patience, coupled with excellent Amazon inventory management skills. The above tips should help you maintain your stock at manageable levels.
Check our blog for more tips and tricks to help you thrive in this highly competitive industry.