Amazon Inventory Management System – Guide, Best Tools, Pros, Cons & Everything Else   

Have you ever considered what happens during the 48 hours after you place an order?

Amazon picks, packs, and delivers your product.

All of this is done through Amazon’s inventory management system.

As sales increase, so does the cost and time of managing inventory.

In this post, we will discuss everything you need to know about the Amazon Inventory Management system.

So, let’s look into it. Shall we?

How Does Amazon Inventory Management System Help Me?

A good inventory management strategy is the key to handling fluctuating orders, restocking problems and customer support.

But, how does a good inventory management strategy help a seller?

There are multiple reasons:

1. Amazon inventory management system helps the seller to keep a good relationship with Amazon and their suppliers
2. Timely supply leads to multiple positive reviews
3. You can avoid last-minute issues and hassles by staying organized when it comes to multiple purchase orders and communications.

Amazon inventory management not only helps sellers but also maximizes sales by increasing efficiency. Now, let’s see how to go about it to get the most out of inventory management tools.

5 Ways You Can Maximize Your Sales by Using Amazon Inventory Management

We will not beat around the bush but get straight to business. We have listed some techniques to help you scale your business.

#1: Use Inventory Management Tools

“Retailers experience a 40% increase in their efficiency by using inventory management tools”

How?

Well, the answer is simple. These automated tools forecast and report before the supply runs out. This particular feature allows businesses to make sound decisions. Manually tracking inventory is tiring and costly.

#2: A Clear Understanding of Turnovers

Use a “forecast tool” to better understand your inventory turnover rate.

However, we will also make it clear for you that inventory turnover rate is basically the speed at which your products sell out.

How does knowing it will maximize my sales?

Well, the answer is relatively simple. It prevents your business from ever running out of stock. You will have a clear understanding of when you are overstocked and understocked.

#3: Use Dropshipping

“Dropshipping massively saves cost. Your supplier directly sends the product to your customer”

And the best part? You do not need a warehouse. All of this is managed by the supplier too.

CAUTION: It is incredibly important that your dropshipping supplier reports inventory accurately so that you do not sell when they are out of stock.

#4: Plan For Fluctuating Seasons

Holidays and seasonal demands have a considerable impact on inventory.

It is imperative to know products that will oversell and the ones that aren’t going to sell in that particular season.

How can I improve my efficiency during the holidays?

COMMUNICATE WITH YOUR SUPPLIER. You can solve a lot of “late shipment” issues by simply communicating your demands.

#5: Promotional Strategies

Promotion is a great way to maximize sales, but they can also drain your stock.

And this is an issue.

Our experts and team lead sat down to figure out possible solutions to this problem. Let’s take a quick look:

• Remove the promotion after you have reached a certain number
• Order a reserve of products that you plan to promote

Let’s back up a bit, promotional strategies drain out your stock quickly. That means managing it manually can be hectic. Thus, we have handpicked the top 6 tools that will help you in managing your inventory.

Do I Really Need Amazon Inventory Management Software? 

Many entrepreneurs feel that Amazon’s inventory management software is unnecessary and can handle their inventory by themselves. 

While this may very well be true, the fact of the matter is that you’re doing work that you don’t need to do. You have software available to you that can do it for you and maybe even do it better. 

That leaves you with free time to focus on other efforts such as expanding your business even further. 

The aim of every Amazon inventory management software is to analyze your sales channels and provide suggestions to reduce carrying costs and mitigate fees. 

The software also allows you to keep track of your inventory in real-time. Of course, they also provide information regarding your deliveries, sales, returns and orders. 

Hence, the software is something that can benefit both FBA as well as FBM sellers. 

When it comes to FBM sellers, it’s very important that they keep good track of their inventory. This is because since they are also taking care of the shipping, it’s important to keep extra costs to a minimum and ensure no products go to waste. 

With FBA sellers, the shipments are handled by Amazon. However, something that many people don’t know is that you need to keep a very specific amount of your inventory at the Amazon Fulfillment center. 

This inventory has to be high enough to keep up with the number of orders you’re getting from customers. At the same time, if you keep too much and if some of your units sit in the fulfillment center for too long, you can be charged a long-term storage fee for those units. 

Hence, you must maintain this balance with which Amazon inventory management software can help you out a ton. 

Top 6 (Hand Picked) Profit-Maximizing Amazon Inventory Management Software

Customers expect a 100% availability of products.

To keep your inventory in order, you need some inventory management tools. Thus, we have handpicked a few for you:

Let’s look into them.

So, without any delay – let’s get started.

Netsuite ERP

This software is best known for customer management and enterprise resource planning. Now, you must be wondering, how does it actually assist me?

The answer is simple! It allows financial integration, ultimately leading to a better selling plan.

Features

We have listed a few key features of this software for you:

• Synchronize prices
• Create shipment for FBA
• Stock tracking
• Demand planning
• Supply chain management
• Customer services
• Payroll services
• Financial planning

Pricing

The price of NetSuite is customized for each customer. It depends on the number of users and the contract. You might have to pay $99 per user, per month in addition to the base license fee.

Base license fee

Approximately $999

Pros And Cons

You can check it out on the official website.

RestockPro

This software is particularly designed to keep a log of product quantities.

The main purpose of any Amazon inventory management tool is to take your FBA data and convert it into inventory intelligence. Thus, RestockPro is an expert in this domain.

Features

Having problems making the final decision? Well, we have listed 3 key features of this particular software to help you with that:

• Keep a track of sales
• Monitor expected margins
• Look at competitive listings

It has also been noted that Restock pro helps sellers win buy box more often. Additionally, it makes suggestions on your supply chain actions by sending a notification when the stock gets low.

Pricing

RestockPro costs $99.99 per month per user. It allows 1000 orders per month, per user with chat, email and phone support.

Pros And Cons

You can check it out here.

Forecastly

Excelling in inventory projections and reorders saves plenty of time.

One of our team leads, who has been selling on Amazon for quite some time thought of it as a “breath of fresh air.”

Forecastly eradicates doubt. It gives sure short answers to stocking problems.

How? By telling sellers where they are understocked and overstocked.

Features

Why should I buy this tool?

We have listed a few major components of Forecastly to help you decide:

• Provides insight into sales data
• Simplifies your accounting
• Manages inbound shipments

Price

The cost of Forecastly ranges from $80-$240 per month depending upon your orders.

Pros And Cons

You can get it here.

Skubana

It is known for unifying tools needed to run your business by automating repetitive tasks. On top of it all, this tool also thinks about the profitability of your business.

One of our team members recently purchased Skubana and bragged about its app store ecosystem. He claimed that it provides “unlimited extension of possibilities”**

Features

Still confused? Well, don’t be; we have procreated a list of Skubana’s functionalities:

• Let’s take a look:
• Order management
• Shipping management
• Inventory tracking
• Provides analytics (unit margin reporting)
• Inventory optimization

Pricing

With a 14-day free trial, the price of this tool ranges from $1200/month-$2000/month. The cost is subscription based and depends on the users.

Pros And Cons

Check it out here.

SellerCloud

Aren’t we all always on the lookout for things that empower our business?

Let’s discuss how sellercloud does that.

An eCommerce solution designed to assist online retailers. Sellercloud not only offers synchronization but also excels at simplifying business automation. From publishing listings to warehouse management, this tool does it all.

Features

Skim through the key features of Sellercloud before you make a final purchase decision:

• Order management
• Supplier and warehouse management
• Forecasting
• Inventory optimization
• Product identification

Pricing

Sellercloud is priced at approximately $500/month with a free demo. It is charged per transaction.

Pros And Cons

Check it out.

Financialforce ERP

It is very successful at managing time-consuming and complex procedures. But, how does it alleviate monotonous tasks?

By automating journal entries.

Financialforce ERP is ideal for service-oriented companies. It assists them by minimizing expenses and streamlining the workflow.

Features

What’s a little horror story of every seller?

Not being able to make a decision on time. Thus, to save you from that, we have listed key features of this tool:

• Equipped with professional service automation tools
• Accounts management
• Project management (users can create a project with a single click)
• Reporting and dashboards
• Employee management

Pricing

Price of Financialforce ERP varies from business to business. It can be bought as a suite or individually. You have to contact the company directly to get a quote.

Pros And Cons

You can get it here.

Trends Altering the Future of Inventory Management Systems

Do I really need these extravagant tools for my business?

Well, yes, you do.

Modern problems require modern solutions.

You cannot let your sales decline because you failed to innovate. We have listed a few trends that have changed the face of the inventory management industry. Let’s dig into them:

Smart Order Management

You are here because you probably have problems managing orders manually. Order management is time-consuming and costly. Smart order management keeps your business in order not only but also fuels growth.

How does it actually increase sales?

Well, the answer is simple:

It forecasts demands, and you can plan for supplies beforehand. This technology allows you to synchronize sales across multiple channels, thus maximizing sales. Now, you must be wondering why you should invest money in this system?

You may save a few bucks but by acquiring this system, you save the potential of your business.

Mobile Shopping

What if you had to open your laptop or PC every time there was a purchase? We are sure you would go mildly insane. People like to manage their business on the go. This particular trend has made it compulsory for inventory management software companies to launch mobile support.

Cloud-based Management System

Cloud is a relatively new concept, but it is rapidly becoming an optimal choice for sellers.

Here’s why:

It provides real-time tracking, subsequently scaling your business.

Not to forget, these systems are low maintenance. With cloud-based inventory management, sellers/businesses get maximum security. All your business related information and data makes their way into the cloud database and kept safe.

Well, the trends may have an impact on your sales. Turning them around and integrating innovative strategies to increase sales is the only solution.

Final Takeaway

Potential customers should not have to wait for you to restock.

But, isn’t being out of stock a good thing?

No, in the Amazon marketplace, it’s essential that you are always stocked up. Remember that the key focus of Amazon inventory management tools is to provide ease and keep your stock in control.

We would love to hear more about the tools you are using. Feel free to contact us. Check out more content like this on our blog.