11 Ways Amazon Inventory Trackers Improve Inventory Management

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When you’re managing inventory for a business on Amazon, there are many things that can go wrong with your operations. A small change to your processes could result in significant losses, so it’s important to be aware of the tools available to improve inventory management. In this article, we will highlight 11 ways that an Amazon inventory tracker can help improve your bottom line.

Amazon inventory trackers can help you make decisions about managing your inventory

Amazon inventory trackers can help you manage your inventory and set prices that will improve your bottom line while keeping customers happy.

  • Use the data provided by an Amazon tracking app to optimize your labor costs and product selection. For example, if you notice that sales are down for products in a particular color, then it makes sense to remove those items from your order instead of having them sit around until they expire.
  • Track historical data from past orders to look for patterns to better predict how many units of each item will sell based on past trends or seasonal changes. This is useful because it allows you to plan ahead so that you don’t run out of popular items at peak demand times when they’re needed most: during holidays or sales events like Prime Day (which happens once per year in July).

1. Access to Historical Data

Access to historical data is the foundation of making good decisions in business. There’s no way around it. Without historical data, you’re flying blind, and your chances of making a mistake are much higher.

How do you get this data? Amazon inventory trackers make it easy to pull up and reference information from your previous orders—which means that you can use those numbers as a starting point for future forecasts. You’ll have more accurate estimates going forward because you’ve already seen how sales look at certain times of the year or during specific holidays or promotions (like Black Friday).

2. Identify Stock outs and Lost Sales.

If you’re not sure what a stock out is, it’s when your inventory runs out, and you can’t fulfill an order. This is bad for businesses because unhappy customers will leave negative reviews and tell their friends about their poor experience with your company. You can prevent this by using Amazon inventory trackers to monitor your inventory levels so that you know exactly how much to buy and when to reorder more products.

If a customer orders one of the items in your store, but there aren’t enough left on hand (or if it’s past its expiration date), that is considered a stock out. They can be caused by poor forecasting or inaccurate forecasts from suppliers, inefficient processes around ordering new items, or even just an overly large amount of sales relative to what was initially expected based on historical data from previous months/years!

3. Find and Fix Your Stockouts

When you’re selling on Amazon, stockouts are a problem. In fact, they can be caused by several factors:

  • The wrong product is being sold under the correct SKU number
  • You have a defective item that was returned and not binned correctly
  • Your warehouse workers accidentally packed the wrong products into shipments

4. Identify Products That Aren’t Selling

It’s also important to note that tracking your inventory is only half the battle. You need to know when a product isn’t selling, so you can figure out what went wrong and improve on it in the future.

If a certain item has been sitting in an Amazon warehouse for six months without being sold once, there’s a good chance that it won’t ever sell—and it should be removed from your inventory list. That way, you can focus on other products that are more likely to be successful (and generate more revenue).

5. See When You Need to Reorder Stock

Amazon inventory trackers can help you make decisions about managing your inventory and setting prices that will improve your bottom line while keeping customers happy.

With this information, you can see when you need to reorder stock. You’ll know when products are running low and can avoid overbuying inventory or creating excess products in the warehouse, waiting for orders that may never come in. With a reordering schedule set up through an Amazon inventory tracker, you can plan ahead so that products are always available for customers while minimizing the risk of losing money on unsold goods or stock sitting idle in storage.

6. Create a Reordering Schedule

Now that you’ve set up your new inventory tracker and have started keeping track of how much inventory you have, how much you need, and when to reorder—it’s time to create a reordering schedule.

Reordering can be an overwhelming task when done manually. The best way to make sure you don’t run out of products is by creating a detailed plan based on your past orders, current stock levels, and estimated demand for certain products. Using software such as Demand Planning or Inventory Planner will help keep track of this information, so all you have to do is follow the plan!

Once again: no fancy equipment is necessary! You can get started right now by simply taking note of what items are in high demand or low supply within Amazon’s Seller Central dashboard. Then use this info along with historical sales data from Prime Day (or whatever other major sale events happen throughout the year) as well as seasonal trends (e.g., Halloween costumes sell better towards Halloween). Finally, with this information, create an order based on these metrics using either Excel or Google Sheets (many free templates are available online).

7. Avoid Overbuying Stock

If you’re a small business owner, you’ve probably heard about the importance of inventory management.

But what exactly is inventory? And how do you know when to buy more or stop buying altogether?

Inventory is the physical products your company has in stock. For example: if your company makes coffee mugs and sells them on Amazon, then all of those coffee mugs are part of your inventory.

8. Track Restocked Inventory

If you receive an order from a customer, it’s likely that some of the items on order will be reordered from your supplier. In this case, you can use a tool like Amazon Inventory Tracker to track the current location of the product and where it was received or purchased to ensure that all products are accounted for throughout their lifespan in your supply chain.

9. Automate Restocking Processes

You can automate the restocking process by using an Amazon inventory tracker to identify when you need to restock. For example, you might have a business that sells books on Amazon, and you want your inventory to always be at least 50% full. To ensure this:

  1. Use an Amazon inventory tracker to create a reordering schedule based on your current inventory level.
  2. Set up a reordering threshold so that when the number of items in stock hits below the prescribed amount (50%, in our case), the software will automatically place an order for more products from your supplier (or whichever service provider).
  3. Set up another algorithm if needed. For example, if there’s only one item left in stock and it happens to be a bestselling title with high demand, then set up another algorithm that will increase its priority over other non-bestselling titles with lower demand. So as not to disappoint customers who attempt to purchase but cannot find what they want at reasonable prices due to high prices being charged due to lack of competition due to low availability!

10. Track Competitor Prices

One of the most important things you can do with an Amazon inventory tracker tracks your competitors’ prices so you know if they’re undercutting you. This will help you decide whether or not to discount your products and how much of a discount would make sense for each product.

You can also use the data to see if you need to lower your prices in order to compete with your competitors. This can be one of the most effective ways to improve your sales, as it will increase the number of customers who are willing to buy from you instead of them.

11. Monitor Product Sales Performance

Monitoring your product sales performance is essential to understanding how your products are performing on Amazon. You will be able to monitor how your competitors’ products are doing and thus gain insight into what customers want.

For example, if you see that the demand for a product is high, but its sales rank is low, many other sellers are offering it at a lower price than yours (or at least not as high of a price). This could mean that you need to restock the item so that customers can access it through Amazon instead of going elsewhere.

Conclusion:

All in all, Amazon inventory tracking tools can be a huge help for retailers who want to improve their bottom line by managing the flow of products through their supply chain. They can also help to identify problems with your inventory management system and find solutions that will work best for your business.

 

Picture of Zeeshan Riaz <br> <span class="designation">Chief Operating Officer</span>
Zeeshan Riaz
Chief Operating Officer

With education and experience in IT. Law and E-commerce industry, I have successfully helped more than 250 E-commerce businesses worldwide to reduce their operational cost with cutting edge eCommerce Marketing Services. I do manage a team of more than 250 people team which includes Amazon, eBay, Shopify, website development, SEO and SMM experts.

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