Inventory is an integral part of running a business successfully. Two major profit killing from inventory aspects are: storage fee from overstock and losing sales due to out of stock situation. Inventory management is finding a balance between two little and too much stock. Today we have composed some of the important tips and techniques to manage inventory under your control:
A Well Managed Inventory is a Well Managed Business
Improving Your Amazon Warehouse Inventory Management Techniques:
1. Use Amazon Software for Tracking
With the growing business, it becomes difficult to manage the inventory through multiple excel sheets and countless folders. Sometimes calculation blunders in the excel sheet leads to huge losses in the business. But thanks to the amazon inventory management software as it keeps track of all the inventories on a daily, monthly, and annual basis. It also helps to calculate sales, profit or loss.
2. Seasonal Effect on Sales
It is expected that the sales increase during the festive season like Christmas, New Year, and other festive seasons. Sometimes the rise of sales leads to out of stock situations and sometimes the understock also leads to loss. With understock you lose the customers and with overstock sellers have to pay extra for warehouse storage and packaging. But thanks to Amazon inventory management software to take care of it.
3. Maintain 60 Days Stock
Here another technique that can help you is maintain 60 days stock on hand to cover the expected sales volume. Take the help of Amazon’s inventory report to forecast the sales volume. You can also double check with the sell-through rate. Sell-through rate through FBA is measured as balancing inventory and sales, where it is calculated by dividing total sold unit & shipped unit over 90 days over average number of inventory units during those 90 days.
4. Cut down the Demand of Product in case of Shortage of Product
To cut down the demand of the product, you can pause the advertisement campaign or increase the price of the product. This way you can maintain your in-stock rate. Once your inventory is available at the fullest, you can cut down the increased price and start the advertising campaign.
5. Get Ready for Unexpected
It is always good to prepare your business for unexpected circumstances. COVID pandemic has taught the lesson that not everything runs smoothly all the time. If it’s possible, we suggest you order backup units and this includes storing extra units in your warehouse as in case of the real delay, you can fulfil the order. But this suggestion is not applicable if you are having funds, storage, or capital shortage.
6. Use Inventory Management Software
Having reliable inventory management software is a true blessing. Sellershub is one such software that helps to keep your business on track without worrying much about inventory and other aspects of business. Its advanced features help to forecast demand in advance to avoid understock or overstock situations.
We hope this piece of writing helps with some useful techniques to maintain the inventory system flawless. Ensure to checkout Sellershub inventory management software. Our software is equipped with well designed tools to pave a right path for your small and large business.