The inventory management dashboard on Amazon can assist your business to manage stock effectively.
For FBA sellers, Amazon provides a suite of inventory management tools that can be found in Seller Central.
Entrepreneurs and e-commerce businesses benefit from these tools’ faster order fulfillment and efficient inventory management.
When stock levels are low, the inventory performance dashboard sends an alert and offers demand planning and forecasting to suggest optimal inventory levels and shipping dates.
Sell-through rates, aging stock alerts, and recommendations for optimizing storage are all displayed on the dashboard, which provides essential inventory information.
Your seller account comes with access to this set of tools, which can be accessed through Seller Central and the mobile Seller App.
How does Amazon inventory work?
Amazon’s machine learning-based inventory management system is made available to sellers who select FBA. This system makes forecasting customer demand and determining optimal inventory levels possible by incorporating inputs such as Amazon data, shipment time, and the cost of goods sold.
With Amazon, you can automatically monitor how well you manage your inventory.
Inventory performance is a measure of inventory management and replenishment. Similar to a credit score for inventory efficiency, the Inventory Performance Index (IPI) is a metric for Amazon sellers that measures how effectively you manage your FBA inventory.
Your IPI score is based on how well you:
- Restock popular items,
- Maintain healthy inventory levels
- Fix listing issues.
Boost your IPI score to cut down storage costs.
A good inventory score will benefit you much as a high credit score will. Higher IPI score vendors typically pay storage costs as a percentage of sales that are less than 1% on average. Maintain a high IPI score to reduce storage expenses and increase profit.
Your storage expenses are reduced and you are given more storage space in Amazon fulfillment centers if your Amazon IPI score is higher than 400. Storage restrictions are adjusted every quarter based on your sales volume, IPI score, and available fulfillment capacity. As a result, you can sell more items on Amazon with two-day shipping and cut your operational expenses.
8 pointers for efficient inventory management
You may streamline your inventory operations by taking a few simple but efficient measures. How much product data, for instance, can you track? Perhaps recording product size, weight, or barcodes could increase sales in addition to tracking individual units. This information can therefore help you avoid having too much product on hand or make the most of available storage space.
Follow these best practices for inventory management to boost sales and please customers
You can optimize your supply chain procedures or source products with the help of the Amazon Service Provider Network.
Here are some pointers to assist you in effectively managing your inventory:
- Establish and maintain connections with vendors
- Keep an eye on your sell-through rate.
- Quickly replenish popular products
- Run campaigns to get rid of aging stock.
- Pay attention to your margins
- Getting rid of excess inventory will boost your profitability.
- Select the appropriate inventory control system.
- Maintain an inventory cover of four weeks.
It’s about balance.
Simple actions can turn sluggish sales into a thriving firm. Your firm might become more profitable the better your inventory is managed.
Fast product distribution, keeping adequate stock on hand to satisfy demand (even during peak seasons), and protecting your supply chain from disruptions caused by weather and other uncontrollable circumstances are all essential components of effective inventory management. Pay special attention to areas where you may reduce expenses, such as storage and order fulfillment.
Adopt best practices for inventory and continuously use them. Be alert and keep an eye out for any delays in the listing, selling, or delivery of things. To reduce expenses, have a high sell-through rate, and enhance inventory performance overall, deal with issues as they come up.
The key to effective inventory management is balance. To ensure that you don’t become overstocked, make sure you have just enough inventory to meet demand. To earn a return on your investment, constantly maintain your inventory.
The cost and barrier to entry for starting an online store are reduced by using Fulfillment by Amazon.
For owners of e-commerce businesses using FBA, Amazon provides a complimentary set of inventory management tools. You may access this collection of tools through the Seller Central dashboard or the Seller App on your smartphone.
Amazon uses machine learning models to deliver data-driven recommendations along with daily inventory and storage reports through features like:
- Inventory Performance Index
- Inventory Age Report
- FBA Restock Tools