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 each and everything you need to know about 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:
- Amazon inventory management system helps the seller to keep a good relationship with Amazon and their suppliers
- Timely supply leads to multiple positive reviews
- 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.
7 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” in order 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.
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.
Note: Amazon ranks the most adequate inventory to the front, all the more reason for you to purchase inventory management tool.
(Source)
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
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.
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.
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.
Check it out here.
SellerCloud:
Aren’t we all always on the look-out 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:
With a free demo, Sellercloud is priced at approximately $500/month. It is charged per transaction.
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.
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 not only keeps your business in order 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 should I 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 relatively a 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 its way into the cloud database and kept safe.
Well, the trends may have an impact on your sales. The only solution is to turn them around and integrate innovative strategies to increase sales.
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.
