Managing High-Value Inventory on Amazon

After managing $200M+ on Amazon, here's what I've learned: Premium brands need different rules. The old playbook: • Race to the bottom on price • Compete on basic keywords • Pray for profitability The new playbook: 1. Brand Protection ▢ Monitor listing hijackers ▢ Enforce trademarks ▢ Control market share 2. Strategic Pricing ▢ Premium positioning ▢ Planned deal calendar ▢ Holiday event leverage 3. Traffic Control ▢ Branded term dominance ▢ Non-branded expansion ▢ External traffic conversion 4. Inventory Mastery ▢ Never stockout ▢ Geographic distribution ▢ Fee optimization 5. Data Intelligence ▢ Daily keyword tracking ▢ Search query analysis ▢ Competitor monitoring This is how Ridge Wallets sells $100 wallets in a $20 market. Strategy beats price. Every time. Agree?

Because inventory causes exponential pain with multiple warehouses... This infographics shows how to manage inventory in this context: ➡️ Centralize Inventory Visibility ↳ Issue: not knowing inventory levels across locations can lead to overstock in one warehouse and stockouts in another ↳ Action: Implement an inventory management system/ ERP that shows real-time inventory positions for all warehouses in one snapshot ➡️ Classify Products and Prioritize ↳ Why: Not all SKUs deserve the same treatment; some are high-value, others are seasonal ↳ Action: Use ABC analysis to rank products by focusing on A-items for tighter control ➡️ Define Replenishment Rules by Warehouse ↳ Why: Different warehouses cater to different regions or demand patterns. One-size-fits-all reorder points (ROP) won’t cut it ↳ Action: Tailor ROP, safety stock, and min-max levels by location. Consider lead times from central distribution centers or suppliers for each site ➡️ Breakdown Forecast by Warehouse ↳ Why: Each warehouse faces unique market dynamics ↳ Action: Generate warehouse-level forecasts, combining local sales trends with broader S&OP inputs ➡️ Plan Transfers Strategically ↳ Why: Sometimes it’s of lower cost or faster to transfer stock than reordering from suppliers ↳ Action: Set up a transfer framework; regularly review surplus vs. deficit at each location. Automate triggers for transfer orders when it’s cost-effective. ➡️ Monitor KPIs Proactively ↳ Why: Multi-warehouse complexity can hide inefficiencies when not tracking the right metrics ↳ Action: Track fill rate, inventory turnover, stock aging, and transfer costs at each site. ➡️ Plan Direct Dispatches & Save Costs ↳ Why: Dispatch directly from the plant to save logistics costs ↳ Action: Prepare daily dispatch plans targeting direct replenishment from the plant and use these warehouses for milk runs for distributors Any others to add?

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?

"My company is afraid to spend, but they're losing money by running out of stock." The irony is real: Amazon sellers know the pain of achieving high rankings only to see them plummet from inventory issues. I spoke with a seller facing this frustrating cycle—they hit their highest revenue and then ran out of stock, causing a drop in rank that could take weeks (and major ad dollars) to recover. Sellers trying to scale can learn a lot from this common challenge. If you're managing inventory in-house, here are some critical steps to protect your hard-earned momentum: 1. Forecast Conservatively for Surges - Track sales velocity and stay proactive. Stock at least 60 days of top sellers to handle peaks without crashing into zero inventory. 2. Consider Dual Fulfillment - If you’re only using FBM, having some inventory on FBA can stabilize your rankings. Running both can help buffer those inevitable stockouts. 3. Re-evaluate Your Margins Regularly - Recalculate margins every few months—particularly if inventory fees were keeping you FBM-only. Demand and cost structures shift, and so should your strategy. Get on Top of A+ Content and Image Quality - Content sells. "Old-school" product images don’t cut it anymore. Invest in A+ content and conversion-focused images, especially if there are high-margin products in your catalog with untapped potential. For any Amazon seller wanting to break the stockout cycle and keep scaling, the key is creating a proactive strategy—not a reactive one. What’s been your biggest inventory challenge? Let’s chat in the comments. Follow me for more tips on how sellers can scale smartly on Amazon.

I single-handedly manage 10 Amazon accounts with a hands-on approach that goes beyond basic ad optimizations to elevate my clients’ sales. Inventory Optimization for Sales Growth 1. Strategic Inventory Levels I aim to keep a 90-day supply of inventory either at Amazon’s fulfillment centers or en route: • 60 Days on Amazon’s Shelves: Ensures consistent availability for immediate sales. • 30+ Days in Transit: Provides a buffer to prevent stockouts and manage demand. 2. Restocking Formula I factor in any growth trends and seasonal changes using a formula based on the last 90 days of sales. This allows me to calculate the exact restock quantity, keeping inventory lean yet effective. Benefits of This Approach • Reliability: Shows Amazon we can handle sustained demand, potentially boosting visibility and sales. • Risk Mitigation: Minimizes risks from delays or supply chain issues. • Improved IPI Score: A higher Inventory Performance Index can increase restocking allowances. Impact on Brand Health • Cash Flow Management: I encourage clients to keep six months of stock on hand—three months with Amazon and three at their dock or a 3PL. • Prevention of Stockouts: While occasional stockouts happen, this approach is designed to prevent them on Amazon. • Forecasting & Purchasing: Success depends on accurate forecasting and a proactive purchasing team; weak planning often causes brands to fail. This inventory strategy supports sustainable growth, reinforces brand health, and ensures we’re ready for predictable and unexpected demand spikes. #amazon #amazonfba #amazonseller

Brands selling on Amazon and sourcing from China are facing countless questions. Despite all the noise, these brands should focus on INVENTORY for top sellers above all else. Top Sellers = Pareto A items (those generating 80% of revenue) Questions to ask: 1. How many days of coverage do you have for Pareto A items? 2. Are you ordering on cadence OR pausing orders until there's more clarity on tariffs? Once a brand knows how much inventory it has at various stages of the supply chain for Pareto A items [on a boat + at a 3PL + in owned warehouse + inbound to Amazon + at Amazon FCs] and whether replenishments are flowing or paused, the brand knows: The Effective Days of Coverage (EDC) EDC = all inventory / seasonally adjusted average daily sales velocity Scenario 1: EDC < 90 days 1. Immediately cut spending on ads for Pareto A items. 2. Switch Branded campaigns to non-Pareto A items with more EDC. 3. Add other items to high-performing Sponsored Products campaigns for Pareto A items and disable the Pareto A item within the ad group. 4. Increase FBA inventory for non-Pareto A items knowing sales will shift 5. Consider removing Pareto A items from A+ content comparison charts, virtual bundles, and the brand store 6. Consider taking Pareto A items off your DTC site 7. Consider removing Pareto A items from the promotional calendar 8. Consider increasing price to slow sales velocity With EDC < 90 days, brands are in PRESERVATION mode. Goal: Stay in stock! Scenario 2: EDC between 90 and 150 days Do 1-4 from Scenario 1, likely don't need to do 5-8 until closer to 60 days EDC. Running out of stock for an extended period on Amazon can have lasting negative effects on a product. Do EVERYTHING you can to stay in stock. #amazon #supplychain #tariffs #amazonvendor #amazonseller

From $2M to $24M: The Power of Strategic Inventory Management and Optimization Let me tell you about a company that came to me with solid sales—around $2 million—but they were hitting a major wall. The issue? Constantly running out of stock and an “it’s okay to be out of stock for a few months” mindset. 🚫 Here’s the reality: if you’re serious about growth on Amazon, that approach is a recipe for failure. We flipped the script immediately. 📦 First, we optimized every listing—targeting the right keywords, upgrading visuals, and ensuring every high-demand variation was consistently in stock. We even brought in air shipping for faster restocks, despite the cost. Why? Because the price of missing prime search rankings is far greater. When a best-seller sells out, you don’t just lose sales—you risk tanking your ranking altogether. Beyond that, we refined their inventory strategy. No more overstocking slow-movers that were tying up cash flow. Instead, we focused on high-demand items, broke up case packs, and used every advantage Amazon’s algorithm could offer. It’s all about keeping what sells, selling, and freeing up cash for reinvestment. The result? This $2 million operation scaled to $24 million in two years. 🚀 No gimmicks, just disciplined management and a laser focus on strategy. That’s the reality of winning on Amazon. You can’t just list and hope for the best. It’s about optimizing every detail, staying ahead, and never letting your momentum slip. #amazonppc #AmazonSellers #AmazonAdvertising #AmazonFBA #AmazonSeller

Running out of stock doesn’t just hurt, it ruins your entire Amazon strategy. Your PPC turns off, ACOS goes haywire, and your listing loses momentum. "A single stockout can unravel months of effort and budget in just days." 👉 Keep your PPC alive: Always maintain enough inventory to sustain ad performance. Stockouts lead to costly recovery campaigns. 👉 Plan inventory with a buffer: Forget just-in-time management—buy ahead. Supply chain delays are the new normal. 👉 Prioritize high-performing SKUs: If budget is tight, focus on products with proven ROI and steady sales velocity. When your inventory runs dry, you’re not just losing sales today, you’re sacrificing future ranking and campaign efficiency. Treat your inventory like the engine of your business because without it, everything grinds to a halt. PS: Think of extra inventory as insurance, not expense. A stockout is far more expensive than a warehouse full of goods.

Being in stock is not enough! Most brands on Amazon aren’t losing to better products; they’re losing to where their inventory’s sitting. Amazon’s algorithm has gotten heavily regional. If your product isn’t stocked close to where people are searching, your organic rank drops even if everything else is on point. We’ve seen this play out again and again with client accounts. Fixing it isn’t complicated, but it’s often overlooked: 🦏Pull order and inventory data by region 🦏Identify where top sales are coming from 🦏Spot any stock gaps or long delivery windows in those regions 🦏Reallocate inventory to high-demand fulfillment centers 🦏Track the Units-to-Sold ratio and delivery estimates to measure impact One client had 60% of orders coming from just 8 states, but was understocked in 4. Fixing that instantly improved both visibility and conversion. Bottom line: Amazon rewards fast delivery. If you’re not showing up regionally, your rank and revenue are taking a hit. This is one of the lowest-effort, highest-return moves you can make right now.