Amazon is a broad platform for both sellers and buyers. To wrestle with the demands of sellers, Amazon started its FBA service. This service helps sellers sell on Amazon with inventory and without burden. Best Inventory Management has a great impact on your sales. A minor amendment in inventory management can significantly affect your profits, sales and revenues.
But for that, you first need to know about inventory management.
What is Best Inventory Management?
Inventory refers to the products, items, goods, and materials sellers own to sell in the market and earn profit.
Inventory management basically refers to ordering, tracking, storing, packaging and selling one’s stock. This process includes selling stock from scratch, like managing raw materials, parts, details, warehouses and selling products to the correct addresses.
It won’t be wrong to call inventory investment, and the results of poor investments always make business difficult and lessens the profit. Defaulted products, non-sellable stock, returned items, and high storage fees can immensely cut your profit. Therefore, it’s not easy to sell with inventory if not done rightly.
Importance of Best Inventory Management
A proper inventory management strategy is crucial for any seller and its business despite the size of the business or company.
It helps sellers to keep a tab on their stock, its sale and rates. Having everything prepared backhand can also help you manage sudden demands and maintain good customer service.
Selling with balancing and maintaining your stock, its excess or shortage, good customer service, best packaging and storing can help you a lot with your business and profits.
Benefits of Best Inventory Management
Strategic inventory management is the key to successful selling. It avoids all sorts of errors and problems beforehand. It comes with a lot of benefits. Here are a few of them:
- Improved sales strategies.
- Dealing with impulsive demands or market shifts.
- Increased Profits
- Better Customer Experience
- Reduced storing costs
- Great productivity
But inventory can also ruin things for you if it’s mismanaged.
And if you don’t manage your inventory strategically or properly, here are a few major problems you can encounter:
- Excess inventory
- Low stock
- Dead or non-sellable stock
- High storage costs
Tips to Sell with Inventory and Manage Inventory Beneficially
Small but practical steps can help improve your inventory and sell on Amazon. This will also boost your sales and generate more profits for you.
Here are a few tips for selling on Amazon with inventory and managing it in the best way:
- Building connections with suppliers
- Monitoring your sale
- Get rid of excess inventory to boost your profits
- Restock favourite products immediately
- Tracking all your costs
- Doing promotions to lessen non-sellable inventory
- Choose the right inventory management system
Let’s discuss them all in detail.
Building connections with suppliers
Suppliers play a vital role in your sales and business. Therefore, it is crucial to maintain a healthy relationship of trust with them. It will help you get a finer deal, teamwork and maintain cordiality.
To keep a great supplier relationship, you have to approach it in the correct way. Here are a few ways to sustain a good relationship with a supplier:
- Clearing your bills timely
- Respecting your suppliers
- Good communication
- Understanding your suppliers
- Asking for constructive opinions
- Give feedback
- Dealing with them fairly
Building and maintaining a good relationship with suppliers can help you easily sell on Amazon with inventory and without any selling issues.
Monitoring Your Sale
It doesn’t matter whether your business is small or big; monitoring your sales is still essential!
Monitoring and keeping a tab on your sales allows you to collect and analyse all the data, stock and availability, which gives a clear insight into the restocking and customer needs.
The primary purpose of monitoring sales is to check the balance between the incoming and outgoing stock and inventory. And if it’s not balanced, then work on it strategically. Briefly saying, monitoring your sales gives you insights and creates awareness of the things you are missing.
Get Rid of Excess Inventory To Boost Your Profits.
If you have an excess of products in your inventory just lying there, costing you a monthly storage fee, it’s better to sell them. It is one of the Best Inventory Management trick.
You can try by putting them in a deal like “Buy one, get one free.” You can also put them in bundles and then get rid of them.
You might have to sell those products for less than you imagined, but it will at least save you from paying extra storage fees.
Restock Favorite Products Immediately
While getting rid of extra inventory, don’t forget to restock the products which are in great demand and earn you good revenue.
Monitor sales in such a way that you won’t run out of stock, especially the popular products. Keep track of the supply time of the bestselling products so you can reorder them in time without losing customers. Keep enough backup of such products for sudden mishaps or situations.
Restocking popular products is essential as they bring great revenues to your business and profit and boost your sales.
Tracking All Your Costs
Tracking and monitoring all your costs helps you with your business strategies.
Considering all the costs will give you awareness of the costs and your leftover profit margins.
Calculating all the costs included in selling an item, like the seller fees, storage costs, packaging fees, and shipping fees, will give you an insight into your profit and help you decide your rates for good profit margins.
Doing promotions to lessen non-sellable inventory.
Isn’t it more beneficial to pay for the promotion of dead stock rather than paying for their storage?
To avoid paying unnecessary storage fees, advertise or promote your product through Amazon’s services. This will increase your sale and free up the unprofitable occupied storage space.
When your product hasn’t sold for over 3 months, take action to promote and sell them.
You can also take help from Amazon’s Inventory Performance Index. They give recommendations for dead stock, like removing or promoting it through offers or ads.
Choose the Best Inventory Management System
If you start monitoring your inventory on paper by hand, it will be highly time-consuming, and the chances of errors will be higher. An inventory management system or software is a must-have to save time and adequately conclude the task. This ensures that you carry just the perfect amount of stock, not less, not more.
Amazon has a built-in inventory management system in Seller Central, which gives recommendations to customers based on their inventory needs.
It’s your choice whether you use FBA or any other alternative for it, but the inventory software should be able to keep up with your needs. It should:
- Provide stock refilling recommendations.
- Keep a tab on all the costs.
- Monitor and provide a report on product sales, types, quantities, and dimensions.
- Track the number of days you’ve held a product in the warehouse.
It’s not easy to make your name and earn a reputation on a platform like Amazon, which is vast, widespread and full of valuable sellers. Once you have made an impact, you can’t afford to lose that hard-earned reputation just because of poor inventory management.
So in this article, we have given you the perfect tips on how you can sell on Amazon with an best inventory management.
Utilize these tips in the best possible way to keep your stock balanced and profits high.
Best of luck!