1. Master Your Restock Timing
Use Amazon's recommended restock quantities as a starting point, but adjust based on your sales velocity and lead times. Factor in seasonal trends, promotional periods, and supplier lead times. Aim to maintain 30-60 days of inventory to avoid both stockouts and excess storage fees.
2. Utilize Inventory Performance Index (IPI)
Keep your IPI score above 400 to avoid storage limits. Focus on the key metrics: reducing excess inventory, improving sell-through rate, fixing stranded inventory, and maintaining appropriate stock levels. Remove slow-moving products through liquidations or removal orders.
3. Implement Multi-Channel Fulfillment
If you have excess inventory, use FBA to fulfill orders from other channels like your website or other marketplaces. This helps move inventory faster while providing customers with fast shipping, all while avoiding long-term storage fees.
4. Seasonal Inventory Planning
Plan for seasonal peaks and valleys. Increase inventory 8-12 weeks before peak seasons, but start reducing 30 days before the season ends. Be aware of long-term storage fee dates (April 15 and October 15) and plan removals accordingly.
5. Automate Inventory Tracking
Use inventory management software to track sales velocity, forecast demand, and automate reorder points. Set up alerts for low stock levels and slow-moving inventory. This automation prevents both stockouts and overstocking situations.
Conclusion
Proper FBA inventory management requires constant attention and adjustment. By implementing these strategies, you can significantly reduce storage fees, avoid stockouts, and improve your overall profitability on Amazon.