Importance of Inventory Management for Amazon Sellers

I just watched a DTC brand lose $1.2M in Amazon sales. Their crime? Running out of stock for 3 weeks. Here's what most sellers don't understand about Amazon: It's a MOMENTUM game. When you run out of stock: ✎ Your organic rankings plummet ✎ Amazon's algorithm penalizes you ✎ Competitors steal your customers ✎ Rebuilding takes 3-5× longer than the stockout period The math is brutal: ✎ 3 weeks out of stock ✎ 3-4 months to recover ✎ $1.2M in lost sales This isn't theory. I've seen it happen repeatedly. The solution? A proper inventory management system: ✔ AWD (Amazon Warehousing & Distribution) as a buffer ✔ Maintain 60-90 days in AWD, 30-60 days in FBA ✔ Create FBM backup listings for emergencies ✔ Set reorder points based on lead time + buffer When we implemented this for our clients, stockouts became a thing of the past. One client went from 6 stockouts per year to ZERO. Their sales increased 43% year-over-year just from consistent inventory. No marketing genius required. Just boring, effective systems. Is your inventory management leaving money on the table?

Inventory will make, or break, your Amazon FBA business.   You can take all the right actions with your marketing to scale your sales on Amazon.   And your sales grow, let's say, 37%. 🤑   And your listing rank went from 4,372 to 2,371 organically. 🎉   But if you forget to ship your product in on time…   In just one week your organic rank will revert from 2,371 to 4,372+. 🙁   Organic rank comes slowly.   It goes quickly.   Staying in-stock is critical if you want to succeed on Amazon.   Start with ABC classification.   Break your products into three tiers:   A Tier: Greater than 5%   B Tier: 1-4.99%   C Tier: Less than .99%   Next, identify your lead time - how many days does it take to get product in?   Finally, identify your unit sales velocity.   Combine these three together, ABC classification, lead time, sales velocity.   Build an excel & run the report weekly to identify what is running low based on your recent sales velocity, & how soon you need to ship accounting for lead time.   Analyze your excel every Monday.   Never let you’re A tier go OOS.   Always keep up with B tier products, trying to get the lead time just right.   For C tier, do your best, but if cash is tight, or time is thin, it's okay to go OOS on C tier's occasionally as it will be low impact on your sales.   #Amazon #Inventory #ecommerce #digitalmarketing #sales

Amazon Sellers, managing inventory in 2024 isn’t just about staying stocked; it’s about keeping the right products available without drowning in unnecessary variations. “Never go out of stock.” This is Commandment #1 and #2 for a reason. Run out of inventory, and your rankings and sales take a dive. 👉 Reconnect Excluded Listings: For international sellers, ensure your listings are live in each region. Use Amazon’s “Build International Listings” feature to reconnect any excluded offers in target marketplaces. 👉 Limit Variations to Avoid Cannibalization: Adding too many variations might spread your sales thin. Focus on top-performing versions to strengthen SEO and protect your ranking. 👉 Download Monthly Inventory Reports: Regularly download Amazon Fulfilled Inventory Reports to track stock levels and spot issues early. Stranded inventory or incorrect stock levels hurt performance, so get ahead with a monthly check. These proactive steps keep inventory streamlined, prevent missed sales, and reduce last-minute restocking panic. Start with solid product knowledge and build inventory routines to stay agile in Amazon’s ever-shifting marketplace. P.S. Staying stocked isn’t just strategy; it’s survival. With a routine in place, you'll keep your listings sharp and your sales steady.

Running out of stock on Amazon isn’t just inconvenient—it can devastate your business. Here’s why: Why Stockouts Are a Nightmare: 👉 SEO Suffers You lose the organic keyword rankings you worked hard to achieve. 👉 Sales Momentum Declines Your PPC performance takes a hit, and rebuilding that momentum is an uphill battle. 👉 Customer Trust Is Broken Loyal buyers can’t find your product and turn to competitors instead. Months of effort—perfecting SEO, optimizing PPC, and building trust—can crumble if you’re out of stock for even a short period. How to Avoid Stockouts: 👉 Maintain 90 Days of Stock Keep enough inventory to cover 3 months of sales. Balance this carefully to avoid understocking fees or overstocking penalties. 👉 Plan for Seasonal Demand Anticipate sales spikes during holidays and promotions. 👉 Account for Lead Times Factor in the time it takes to manufacture or import products. 👉 Plan for Growth Track sales trends and adjust your inventory to support your business’s expansion. Who am I?
 I’m Ryan Eales, co-founder of The Amazon Whisperer, a full-service Amazon Management Agency. What do we do?
 We implement a DFY growth system covering SEO, PPC, and Graphic Design to help Amazon sellers grow their businesses sustainably. Want More Insights?
 Follow me for actionable tips to avoid stockouts, scale your sales, and dominate on Amazon!