Why You Need an Amazon Inventory Management Software

Amazon inventory management is an important but often challenging part of running a successful Amazon business. Timing inbound shipments and monitoring low stock levels can mean the difference between continued profit momentum and a stagnant sales period. With an Amazon inventory management software like Inventory Manager from Helium 10, sellers now have unmatched control over purchase order creation, local inventory levels, and inbound shipments to Amazon warehouses. Helium 10 applies advanced forecasting models to your sales and inventory data to provide recommendations on when to order or transfer your products.

Key Tips for How to Manage Inventory on Amazon

It is best to consider Amazon inventory fulfillment as an investment. Even putting in the work now may not yield results immediately, but investing in smooth inventory control will have a huge impact on your business. There are several ways to manage your inventory on Amazon.

First, make sure you are maintaining a healthy relationship with your supplier. This means clear communication, staying up to date with your bills, and active goodwill building. Your supplier is one of your most important business relationships; nurture it constantly! Additionally, you want to balance your incoming and outgoing shipments. This is known as managing your “sell-through rate” and helps avoid spiking warehouse costs caused by stocking more inventory than you can realistically sell.

One of the most important aspects of Amazon inventory management is identifying high-demand and low-demand products. Aging inventory or overstocked products make great candidates for special Amazon deals to help liquidate stock taking up space (and cost) on your warehouse shelves. Conversely, you never want to run your inventory dry of a bestselling product with healthy sales momentum. Track your inventory throughout the year to account for holiday spikes in demand and possible supply chain disruptions so you can take advantage of Amazon’s busiest seasons.

Next, you should ensure that you maintain four weeks of inventory cover. Being able to meet demand and offer fast shipping is every FBA seller’s ticket to soaring profits and keeping enough inventory to meet demand on a rolling four-week basis is ideal for keeping well-distributed stock.

Lastly, all Amazon sellers should choose an inventory management software that is easy for them to understand. Whether you are fulfilling your product orders via FBA or using your own warehouse, the right inventory management system will sync with your order fulfillments, track product info, provide refill recommendations, push alerts for low stock, and be centralized in one dashboard like Helium 10’s Inventory Management.