In 2021, Amazon’s global sales were $468.78 billion, which is 15.91% more than in 2020, and it is expected to increase in the coming years. Amazon is one of the world’s biggest marketplaces, and selling on Amazon is essential to take your business to new heights. What are you waiting for? Go and start selling on Amazon, but mind it that selling on Amazon is a bit different than selling on most marketplaces.
What is the Need for Amazon Inventory Management Solution?
While selling on Amazon, the primary purpose is to offer a flawless experience to the buyers and to offer it, the right amazon seller inventory management software plays a vital role. The software keeps track of deliveries, inventory levels, sales, and orders originating from your sales channels.
Accurate software helps to carry out the entire business with ease. Properly inventory management is an integral part of Amazon product lifecycle management. With the help of innovative inventory management software, one can make intelligent choices about each product’s pricing and stock level.
It becomes even more critical when you sell with the help of Fulfilment by Amazon(FBA) or FBA onsite. In return for the shipping and storage charges, Amazon stores your inventory in one of its fulfilment centres; it’s the responsibility of Amazon to ship orders to customers at their doorstep.
Common Challenges Faced by Amazon Sellers:
- Excess Inventory
One of the significant drawbacks is excessive inventory. Overstocking kills business slowly and gradually as products lying at the warehouse mean loss of potential revenue, wastage of valuable space at the warehouse and paying unnecessary charges. Plus, the absence of oversight about the products proves to be a hefty loss for the business.
- Customer expectations
One of the significant challenges in the digital space is the higher expectations bar of customers. Now, most consumers order online, and their expectation from the online service has increased manifold as they want faster and cheaper delivery at the doorstep. Consumers do not wish to wait for more than two or three days. The heavy burden of expectation affects the overall business.
- Time consuming and human err
Undoubtedly every business demands time, and ecommerce demands more time as manual tasks take time to manage inventory. This extra time wasted here can be used in the most fruitful ways. Let’s understand it with an example. First of all, you need to list products or process orders on different selling channels. Every time an order is placed, you may need to manage the inventory level on each platform, update it on warehouse details, and whatnot. The worst part is that entering the number manually results in errors.
- Prevent stock-outs
It may sound easy but preventing stock-out is a time-consuming and challenging task. If the business does not have a sound tracking system, you may have to suffer a loss due to the stock-outs situation very frequently.
Advantages of Automated Amazon Inventory Management:
- Track Products in the Warehouse
One of the key benefits of having good inventory management software is that it helps to track products at the warehouse. Further, it helps to track inventory down to your pick locations. When you receive the order, all you need to do is pick units and ship them, and it will be directly reflected in the stock level and reflected on your channel.
- Freedom to Work on Strategy
An effective strategy is everything when it comes to ecommerce business. Instead of burning yourself out doing manual work, invest your valuable time in making strategies. Thank god, inventory management software is the best way to reduce manual work. At the same time, you, as a business owner, can focus on strategy to unleash the next level.
The effective amazon inventory management software allows the integration between frontend and backend stores to carry out activities smoothly. Third-party integration for payment, warehousing, invoice, shipping and other help to carry out day-to-day activities smoothly.
- Data Analytics
Data scattered on different selling channels can be messy; you must collect the data and study it for better planning. Doing this can take forever. What’s better than an inventory software tool that collects data from multiple selling channels and organises it for you so that you can make strategies? Data is the new gold. With the proper data, you can access the current situation in the business. Analytics matters the most in the ecommerce business as one can measure the effectiveness of various marketing and business development activities. One can evaluate patterns and forecasts to meet customer expectations and improve customer experience.
- Lower Operational Costs
Another reason to buy amazon inventory management software is that it helps to reduce operational costs. How? You need less staff as the automation tool helps to eliminate the extra staff needed. Plus, it helps to save money on carrying costs and lost sales due to out-of-stock situations.
Manually managing amazon sell accounts puts your business in a precarious position. But thanks to Sellershub’s Amazon seller inventory management. It is a complete solution for the multichannel selling ecommerce business owner. An experienced and expert team at Sellershub helps in every possible way.
- Why is inventory management software a vital tool?
There are multiple benefits of having a good inventory management tool. Some include lower operational costs, saving time, getting a better business sense through data, and much more.
- How do excessive inventories kill the business?
Excessive inventories demand unnecessary space in the warehouse, plus one has to pay extra charges for the storage, which adds an unnecessary burden on the business.