Many things can go wrong when it comes to Amazon inventory. These headaches could last for months before you get everything sorted. We will be discussing 3 major problems that you might encounter with Amazon inventory and how you can fix them.
It’s a nightmare to run out of stock. Because they are used to convenience, no one on Amazon will purchase out-of-stock products. Your keyword rank, best seller rank, and revenue will quickly fall.
Worse, customers will buy your products if they aren’t available, while competitors will receive more positive reviews. In the meantime, negative reviews could be left for your company as you may have run out of stock.
Over-ordering is the opposite of inventory shortage. Over-ordering is when you order more than you need. Your items are left in storage and collect dust. This can lead to your products sitting in a warehouse, collecting dust, which could cost you storage fees.
You could use these storage fees to throw launch parties, expand marketing campaigns, or develop new features for your product or manufacturing processes.
Whatever problems you face, your team and you will need to quickly and efficiently deal with them. Then put in place processes so that they don’t occur again. These are three common issues with Amazon inventory management.
1. Poor supply chain management
Products can’t disappear and then reappear at another place. They must be moved quickly, safely, and efficiently.
If you don’t manage your amazon supply chain well, product availability and quality suffer. Buyer arrangements can be threatened and resources taxed. Two things to consider:
Supplier mistakes
Suppliers can’t be trusted 100% and there are enough problems with manufacturing that even a small problem can lead to a shutdown.
If this happens, and the suppliers (and their buyers), aren’t prepared for it, it can lead to disaster. Resentment can cause a breakdown in relationships between suppliers and buyers. This can lead to rifts that can take years to heal.
Inefficiencies within the process
A supply chain that is functionally functioning does not necessarily mean it runs optimally. Your supply chain might be inefficient if it isn’t regularly reviewed and updated. This could happen even if your supplier doesn’t notice or cares because they are complacent.
While you cannot do much to correct supplier errors (after all they are outside of your control), you can make operational improvements that will improve your supply chain.
2. Stockout
Online businesses that sell online can suffer from stock shortages, as we have already mentioned. Online shoppers will have the option to go to another store to find what they are looking for, whereas an offline customer might be more willing to return later.
You may be low on stock for the following reasons:
- Not considering your sales velocity
- All sales outlets not monitored
- Don’t get carried away by sales
- Holidays and seasons are not taken into account
- Not paying attention to different shipping options
3. Incorrect pricing or descriptions
Input errors are almost inevitable when manually entering prices and descriptions for multiple products. Price errors can lead to sales losses or lower profit margins.
It is possible to misspell a keyword and cause damage to your website and search engine traffic. If you make a huge mistake and need to contact customers to fix it, you will get bad reviews.
How can you sync prices and descriptions?
It is best to sync your prices and descriptions into one dashboard. This will reduce the need to manually enter information and lower the risk of data input errors.
You can use a variety of tools to help you accomplish this. However, if you prefer doing it manually, then you might consider saving everything in a shared Google spreadsheet.
Once you have created the master file, you can make sure that all information is correct before uploading it to multiple platforms.
Automate everything
These issues can be frustrating and time-consuming. But you don’t need to deal with them if you’re proactive. Tools that automate your business are one of the best investments. This will help you save time and prevent frustration.
Use the following tools:
Forecasting software can help you plan your business moves. The software can help you analyze your sales velocity and manage your inventory. You can also keep an eye on all your metrics from one dashboard.
Amazon inventory management tools allow you to monitor and automate stock processes 24 hours a day and request human intervention when necessary.
Avoid mistakes, be proactive with your inventory and keep your operation running smoothly. Invest in tools, plan, monitor your inventory, and work with transparent providers to prevent them.
