Amazon Inventory Management Guide For 2022 And Benefits of Using a System

With the growing e-commerce businesses, it has become very important to list your products on Amazon for sale. To increase your sales, inventory management has become another important aspect. In this blog, we will discuss Amazon inventory management and what are the benefits of using a system for it.

Amazon inventory management enables you to retain your customers for a lifetime by ensuring that products are always available and in stock with you. 

Suppose a customer wants to purchase some shoes and searched for hours and finally gets the one he wants but when he actually starts buying it, the shoe isn't available with the seller. This may lead to losing your customers. But if you want to retain your customers. Amazon inventory management plays a great role in this.

In this blog, we will discuss -

1- What is amazon inventory management
2- Why is Amazon inventory important?
3- What are some common mistakes that vendors face?
4- How to manage inventory on Amazon properly?
5- What are the various benefits of using automated Amazon inventory management?

What is Amazon inventory management?
Amazon inventory management allows you to keep track of all your products automatically and the orders on your Amazon sales channel. An inventory management system makes your inventory management more simple and more efficient and makes your work a lot easier and more cost-effective. It also gives you some free time which you can use to focus on other areas.

Inventory management ensures that all your order listings are accurate. It helps you to calculate your stock with automation and to save you from other issues down the road which may be caused due to inventory mismanagement.
Hence, Amazon inventory management software can help you to face many challenges that usually sellers face while selling on Amazon.

Why is it important?

1- Helps you to reduce your logistics costs
2- Tracking your inventory anytime
3- Make sure that there is a balance between stocking too much and too little. 
4- Helps you to make smart choices while stocking your products.

What are the common mistakes that vendors face?

1- Going out of stock

It is one of the most common issues faced by vendors. Not having enough stock can directly impact your sales and customers. That's why as a seller one should not at all have less inventory or go out of stock at all costs. Because the longer your products are out of stock, the worse impact it will have on your customers and sellers' rank.

2- Excess inventory

Going out of stock is surely not an option. But over-stocking is another thing which you shouldn't do. At first, it will lead to a loss of your capital. 

3- Stranded inventory

This is another mistake faced by the vendors. This happens when the products in one of the Amazon warehouses are no longer listed on the platform. In this case, although the goods are not listed, the seller will be charged storage fees for each unit. 

4- Long term storage fees

Another issue that you can have is having high storage fees by Amazon. If you have excess inventory and when it is stored for more than a year then, it is considered for long-term storage fees along with the regular storage fees.

How to manage inventory on Amazon?

1- Nurture relationships with the suppliers

Having a good relationship with your supplier will lead to prioritizing your requests by the supplier over others. This will surely impact your business positively otherwise you may end up waiting for your orders or shipping.

2- Keep at least 60 days of supply

This will make sure that you have an ample amount of products in your stock and that you don't go out of stock.

3- Get rid of excess stock

There are some ways by which you can deal with your excess stock

  • Use promotions, coupon discounts, and promo codes to increase sales.
  • Increase your sponsored ads to attract more traffic.
  • Sell the remaining products at discounted prices.
  • You can also donate the goods to NGOs which will also save you tax.

4- Think of a backup plan

We all know that everything we plan doesn't work smoothly every time. Hence, having a backup plan is one thing you can do. 

5- If your inventory capacity is low, then reduce the demand for your products

You can do this by raising your prices or reducing the sponsored ads. 

6- A smart inventory system

Having a smart inventory management system will mitigate all the risks and manage your stock levels as well.

Benefits of Amazon inventory management services -

1- Manage inventory with automation-
Inventory management systems help you to update your listings, and process orders, exchanges, or returns. It helps you to keep track of all your stock and listings. It syncs your inventory levels with all the sales channels without any manual work.

2- Increases efficiency -
Automation reduces the chances of manual errors. It also enables you to set specific prices for different sales channels. It also saves time thereby leading to more efficiency.

3- Improves shipping management -
It enables you to keep track of your orders from the warehouses to the shipping locations and up to the final destination. 

4- Enhances customer satisfaction -
With everything being on track, Amazon's inventory management system enhances your customer's experience with timely delivery which eventually helps you to increase your sales.

5- Saves time-
Using the Amazon inventory management system helps you to save your time which can be diverted on focusing on your strategy for campaigning, increasing sales, enhancing customer services, etc. 

Conclusion
Amazon inventory management is one of the most important tools which helps you in better handling your account and ensuring customer satisfaction. It helps you to boost sales on Amazon, generate reviews, and connect with your customers. 

With the right inventory management system, one can see which products have high demand and which do not and can manage the inventory accordingly.

Evantage Store offers you the most affordable and best Amazon account management services at the best price. It provides you with all kinds of Amazon consultancy services and Amazon account management services. It helps you increase your sale on Amazon by providing you the best services with its expert and experienced personnel.

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