Resources - Playbooks

Year-Round Amazon Inventory Management Strategies

Learn how to develop an inventory management strategy that allows you to effectively navigate and capitalize on demand in the current retail climate. By Natalie Taylor April 22, 2020

Stay on top of the latest e-commerce and marketplace trends.

45% of Amazon sellers say inventory management is an aspect of their business that needs improvement.

It is more important than ever to have a thorough inventory management strategy on Amazon.

The COVID-19 pandemic has forced retail businesses to pivot their e-commerce strategies to adapt to unprecedented supply chain challenges, volatile levels of consumer demand, and new ways to effectively communicate to customers to serve their needs in the current climate.

With the lift of Amazon’s pandemic-driven restrictions on inbound FBA inventory shipments, the time is now for brands and sellers to prioritize their inventory management to adjust for changes in demand forecasts, inventory levels, and supply chain accessibility.

Has the rise in consumer demand led to inventory stockouts? How long will it take for you to receive more product from your factory partners? Perhaps you have excess inventory that you were unable to sell through or ship to Amazon over the last month.

Given that your entire operation is dependent on your ability to fulfill customer orders, on-hand inventory is arguably the most important — and costly investment for your business. While low stock levels can directly lead to a decrease in sales and have negative impacts on your organic search rankings, excess inventory can result in hidden expenses such as long-term storage fees, obsolescence, loan interest, and alternative costs of not investing in new products.

As a result, finding the optimal balance between not having enough inventory coverage and being overstocked on Amazon is a process that is complex, takes time to master, and can be simplified with the proper tools and expertise.

Leveraging technology and data will help you extract inventory performance insights to monitor your inventory levels, demand fluctuations, and account health on a year-round basis. However, you must be particularly sensitive to preparing your inventory position and maintaining a positive Inventory Performance Index (IPI) score during key selling holidays or seasons, such as the upcoming Prime Day 2020.

In The Amazon Inventory Management Playbook, gain access to beneficial strategies you can incorporate into each layer of your inventory management strategy, from replenishment and liquidation to seasonal selling and ongoing optimizations.

About the Author

Natalie Taylor is the content manager at Feedvisor, where she oversees and executes on the company's content marketing strategy. Prior to her work at Feedvisor, she wrote for a B2B supermarket magazine, focusing on merchandising and marketing trends in the grocery industry.

What’s Inside the Playbook?

Must-consider factors for your inventory forecasting and demand planning
An overview of Amazon’s IPI metric and how you can ensure yours is in good standing
Ongoing strategies to keep your inventory management process operating smoothly year round
How to leverage advertising to drive traffic to low-performing inventory
Best practices for effective inventory replenishment and liquidation

A sound inventory management strategy will allow you to perform at a higher level when it comes to fulfillment and on-time delivery, which in turn will foster a better overall customer experience. Additionally, inventory sits at the center of your greater supply chain and if there are leaks in your inventory — such as from COVID-19-related supplier delays or a product that was inaccurately categorized — there could be negative ramifications when it comes to the rest of your business.

By leveraging the tactics outlined in this playbook, you will be able to accelerate your product sell-through, have a clear understanding of the inventory that you have on hand, and pivot appropriately to accommodate for future advertising promotions or demand fluctuations.

Learn what Feedvisor can do for your business.

When you partner with Feedvisor, you automatically receive access to our true, AI-driven technology and hands-on team of e-commerce experts. Contact one of our team members today to learn more about our end-to-end solution for brands and large sellers on Amazon, Walmart, and e-marketplaces.