Quality of Amazon selling and proportion of seller success is directly dependent upon the quality of inventory management in this marketplace. As has been witnessed over the past few years, problems like order defect rates increasing over 1% that is usually caused by order cancellation initiated by the sellers owing to over / under selling, can lead to immediate loss of ranking or suspension of the seller in this no nonsense marketplace.
Besides this, mismanaged Amazon inventory, especially those that are spread over multiple warehouses including FBA warehouses can directly result in profit drainage that can compromise monthly / annual revenues to a significant extent. To remain in the safer side of things, here are a few steps that sellers can embrace to initiate an yielding and harmonious inventory management process per se…
Always start with streamlined inventory to prevent over stocking –
Even if you are experiencing the best of demands, it will always work in your favor to maintain your inventory at a manageable level. Prevention of overstocking can instantly address a number of annoying issues starting with losing track of immobile inventory that eats up space and cost while not generating any income in return.
Maintain healthy relationship with the supply chain source –
Maintaining a healthy relationship with the supply chain source forms the back bone of maintaining streamlined inventory. This goes a very long way in proper demand prediction which helps sellers stock the right volume of inventory at the right time while generating maximum demand for the same.
Properly integrated feed management like Magento Amazon feed etc always helps in moving out the inventory faster which again contributes to lower warehouse costs and enhanced revenues.
Integrate with real time benefits –
Inventory integration is critical for third party Amazon sellers that do not receive any benefits from the marketplace in this respect. Approaching professional integration services is imperative for staying in tune with the evolution of the marketplace and its requirements. Real time inventory integration is one of the most important features that all sellers must insist upon for effortless yet error free performance.
Always use fee calculation tools –
Lastly, using fee calculation tools to manage inventory costs especially the super structure of FBA charges, can work wonders in terms of cost cutting and revenue management. While fee calculation tools are not intimately linked with the process of inventory management per se, they certainly add a boost to the entirety of the system for enhanced seller benefit.
When you are selling in Amazon with the ambition to achieve uncompromised growth and profits, the only thing that can catch you in the wrong foot is ‘carelessness’. While it is true that no one can be 100% perfect all the time, there are certain acts of callousness that should be consciously avoided in order to make the process of Amazon selling more organized, smooth and gainful…
Using inorganic optimization methods –
Acts of inorganic optimization like keyword stuffing in titles, over pricing at the time of checkout etc is notoriously active among a number of over ambitious sellers. Inorganic optimization does result in steep sudden visibility, but it is also a cause for instant scrapping of listing when Amazon eventually finds out.
Not initiating end to end integration shopping carts with Amazon –
Many sellers in Amazon, mainly small to midsized sellers, still believe that end to end integration is a piece of fiction that costs a whole lot of money but bears no real result. These entities are usually the first to fight a dying battle with visibility and face eventual demise in the marketplace.
Taking reviews for granted –
While the core operational processes still maintain their place in Amazon selling; associated processes like review generation, that is directly linked with growth and reputation building should never be taken for granted. Buyers these days can base their search on reviews and ratings making this and essential factor when it comes to boosting visibility or even gaining a chance at the buy box. Not considering reviews with due importance can thus rob sellers of extended opportunities in terms of competition.
Saying no to tools and software solutions –
selling trends in Amazon is moving at futuristic speed which needs to be supported with the right tools and software solutions. Deciding to make a manual effort in this platform at this age of e commerce can be the biggest act of carelessness any seller can possibly adopt.
Be it integrated operation management like Magento Amazon feed management or inventory / order control across multiple channels of sale, appropriate software solutions that cater to improved automation and feature inclusion is critically important.
Offering same products at lower prices in other marketplaces of presence –
This is applicable mostly to sellers that are present across multiple marketplaces of sale. The ground rule is… Amazon sellers cannot offer the same products in other marketplaces at lower prices. This can get very difficult for sellers especially those that are present in Walmart.com, but the rule needs to be respected at all times. Using proper price management tools can help in this respect.