Tag Archives: Amazon Inventory

4 Ways Amazon Inventory Mismanagement Is Stealing Your Revenues

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Inventory is the spine of all businesses whether online or offline. However, when it comes to e commerce endeavors in top marketplaces like Amazon, managing inventory can be a very daunting task. The nature of ecommerce selling per se, inexperience in the part of sellers, ever changing moods of marketplaces etc; everything plays up in creating a mini black hole that tends to suck out a significant part of your profits.

Following are 4 of the most common ways in which Amazon inventory mismanagement has been affecting seller revenues worldwide…

Overstocking –

You may be very optimistic about future sale of your products, but this is no reason to overstock your warehouses. Overstocking is inevitably linked with overspending for space that will not be required any time in the near future. In fact, warehouses of all top marketplaces are known for charging extra for stock that does not move for a specific period of time. The time period usually ranges anywhere from 3 months to 6 months.

Faulty or no integration with FBA –

Sellers that don’t integrate end to end with FBA often lose track of their inventory to loss making levels. Poor or faulty integrations also lead to similar outcomes. With no means of keeping track of shelved inventory that brings no sale or profits, sellers end up paying for the space this unproductive stock takes up. This leads to steady seepage of revenues that could otherwise be used productively.

Warehouse mismanagement –

This applies not only to sellers that sell particularly in Amazon but multichannel entities as well. In integrated performance of top marketplaces and shopping carts like Amazon Walmart Volusion etc, sellers need to ensure that the number of warehouses engaged is relevant. Initiating end to end syncing of all warehouses enables management of inventory inflow or outflow etc in one single user interface.

Tasks like moving stock from one inventory to the other also get easier and more productive with integrated warehouse management.

Adding products that don’t sell –

Adding marketplace friendly products is very necessary to ensure healthy movement of stock from warehouses. Unpopular and unsuitable products are usually those that clog warehouse space and make sellers bear bigger costs for nothing at all. if you have products as these in your listing, it is always wise to relist the same with attractive offers to get them off the shelves or recall them altogether.

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4 Steps To Healthy Amazon Inventory Management

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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.

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5 eBay Amazon Softwares That Will Maintain Relevance In 2017

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Things are changing very fast in the world of ecommerce especially in top performing marketplaces like Amazon and eBay. The progressive shifts have played a role in initiating the necessity for a whole new class of support systems that can aid sellers to stay in tune with the pace of these super e commerce marketplaces. While it is true that the support systems are evolving by the passing days, it is also true that the superstructure of operational excellence will still rest on these 5 categories of solutions that are least likely to lose their relevance anytime in the near or far future…

Listing / feed management softwares –

eBay Amazon listing softwares from basic level options to advanced options are critically essential for businesses irrespective of their nature or volume. At present, there are tens of motivated ecommerce solution developers that have introduced diverse range of listing / feed management solutions for Amazon and eBay each of which sport features that are compatible with individual requirements of businesses.

Review management solutions –

Review generation in Amazon and eBay have gained phenomenal importance over the past two years. Buyers these days can in fact, make their search based on highest rating products. Using review and rating management solutions can help sellers generate better response for their products thereby gaining better visibility and traffic in their favor. This makes these tools indispensable for successful eBay Amazon ventures.

Inventory integration softwares –

Managing eBay Amazon inventory especially for midsized to large businesses is never a piece of cake. Therefore, inventory management softwares with real time advantages will never lose their relevance for these businesses. The softwares may remain in the back seat for hobby sellers in eBay and very small home based sellers in both marketplaces, but it is only a while before these inputs become primary requirements for gaining better ranking in these platforms.

Pricing / re pricing softwares –

Your visibility in Amazon and eBay still depends massively upon how you price your products and re price the same at frequent intervals to match competitive levels. Approaching this task manually can be overwhelming in many ways opening doors to errors and bottle necks. Using pricing and re pricing softwares though, can minimize or obliterate this difficulty successfully.

Fee calculating softwares –

Performing in eBay and Amazon often involves paying a number of different fees and marketplace charges that can often confuse sellers to an extent that they end up losing money than making it. Using fee calculation softwares is thus a welcome and automated relief that no seller should refrain from using whether in 2017 or beyond.

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5 Ground Rules For Lowering Amazon Inventory Cost

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Amazon sellers at large have expressed their dissatisfaction over the array of marketplace costs and expenses that have played a brutal role in minimizing their profit levels to scratch. Taking a closer look at the issue, it has been discovered that most of these unhappy sellers are relatively new and inexperienced and thus, are yet to learn the art of cost control in this platform.

Understanding the cracks and crevices from which profits tend to seep out is the first step to addressing the issue with success, with greater importance given to the rather imperceptible areas of drainage than otherwise. Mismanaged inventory is one such area that can cause massive drainage in profits making it imperative for sellers to get a hold of the same from the first day on.

Here are 5 ground rules of lowering Amazon inventory costs; tips that have helped thousands of sellers get a grip back on their profits…

Integrating with supply chain source –

Inventory management starts with the supply chain source and not the warehouses. Being in tune with the supply chain source can help sellers stock their warehouses wisely while preventing expensive mistakes like over stocking.

Learning the science of demand prediction –

Proper demand prediction is a strategic tool that can help sellers stock popular / not-so-popular products in volumes that are assured to move smoothly without causing stagnation or bottlenecks. Improper approach to demand prediction or dismissing the importance of the same can increase expenses in the direction of stocking products that are not bringing in any profits and vice versa.

Trimming inventory units in warehouses based on demand prediction –

Bulking up inventory stock in Amazon warehouses is never a good idea because you may end up paying a bloated warehouse rent and management cost. If you have established proper integration with your supply chain source and are good in predicting demands, streamlining your inventory in Amazon will not be a problem.

End to end integration –

This is the key to a balanced and harmonized approach to inventory management in Amazon. In fact, the importance of end to end integration is applicable for all ecommerce marketplaces whether you sell on Walmart marketplace or any other platform for that matter.

Associated factors like proper listing, usage of pricing tools and softwares solutions, profit calculation tools etc. also goes a very long way in helping sellers cut inventory costs while maximizing their profitability by significant extents.

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5 Rules That Make Amazon Inventory Management Easy

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Amazon as the King of all ecommerce marketplaces is evolving by the passing minute. This is thus, the phase when sellers need to ensure maintaining their basic operational processes at its healthiest, which is a reason in itself to gain proven profitable results in the face of competition and that too, at the earliest. Here are 5 basic rules to manage Amazon inventory that can apply to all sellers at all times and for the best benefits…

Always stay in touch with your supply chain source –

Staying in touch with your warehouses is fine, but if you are not in touch with your supply chain source, it will not be long before your warehouses start to experience low stock, no stock followed by over selling and under selling and every other vice that comes with it. Being in touch with your supply chain source, you can always make better demand predictions that can further help with streamlined and more profitable inventory control approach.

Streamlining is the key –

These are the days when you cannot bulk up your inventory solely because you imagined that demand would go up. The key to include stock based on calculated demand prediction that goes a very long way in managing costs and preventing accumulation of shelved / immobile products. Making higher space allotment for stock of popular products will always work in your favor.

Add updated product identifiers –

If you have heard about the Kiva robots that have already been employed in the Amazon warehouses in California, Texas, New Jersey, Washington and Florida, you are likely to understand why at all you need to focus on adding proper product identifiers to your stock. Basically, the process of product location and fulfillment of orders will be a thousand times smoother if you have been attentive in this direction.

Use integration tools and software solutions –

If you wish to add faultless smoothness in your approach to handling inventory, manage the same with high quality integration tools and software solutions. You cannot survive in Amazon, if your inventory system is not integrated and this goes out especially to midsized and large sellers that have an overload volume to handle every passing month.

Fee calculation tools are imperative –

FBA and other warehouse facilities in Amazon do not come for free. There is an intricate fee structure that needs to be followed for the advantages, which it times can claim a chunk of seller profits. Using fee calculation tools however can help sellers understand how much profit they will make per product at their list price after paying warehouse and FBA fees, thereby allowing them to price their products accordingly to maintain profit levels.

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