Amazon Inventory Management Service | Maximise Sales & Minimise Fees
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Optimise Your Operations with Professional Amazon Inventory Management
Effective inventory management is the engine room of a successful Amazon business. It is a delicate balancing act between having enough stock to meet customer demand and avoiding the costly fees and penalties associated with excess, slow-moving inventory. Mastering this is fundamental to profitability and scale.
Our comprehensive Inventory Management service provides both the upfront strategic guidance on your fulfilment model and the ongoing operational support needed to manage your stock levels effectively. We help you eliminate guesswork and run a leaner, more resilient, and more profitable operation.
Key Takeaways
Strategic Fulfilment Guidance: Receive expert, data-backed advice on choosing the right fulfilment model—Fulfilment by Amazon (FBA), Fulfilment by Merchant (FBM), or a strategic hybrid approach—for your specific product catalogue and business goals.
Eliminate Costly Stock-Outs: Our meticulous forecasting and replenishment planning helps you avoid running out of stock on your key products, thereby protecting your sales velocity, organic search ranking, and customer goodwill.
Minimise Punitive Storage Fees: We help you prevent overstocking and maintain a healthy inventory age, allowing you to avoid expensive monthly and long-term storage fees that directly erode your profit margins.
Data-Driven Demand Forecasting: We leverage a sophisticated, data-driven approach to accurately predict future demand, taking into account your historical sales velocity, market seasonality, and planned promotional events.
Improve Your IPI Score: By optimising your stock levels, we help you improve your Inventory Performance Index (IPI) score, which can grant you unlimited storage capacity and protect you from costly overage fees.
The Problem: The High Cost of Poor Inventory Control
Without a clear and proactive inventory strategy, sellers are constantly reacting to problems rather than preventing them. This leads to a cycle of costly errors that can seriously hinder a brand's growth and profitability.
These are the common challenges you face:
The Vicious Cycle of Stock-Outs: Running out of your best-selling products results in more than just lost sales on a given day. It causes an immediate and often significant drop in your organic search ranking which can take weeks to recover. Crucially, it also opens the door for your competitors to win over your customers.
The Silent Profit Drain of Excess Inventory: Holding too much stock in Amazon's fulfilment centres is a direct drain on your profits. It leads to mounting monthly storage fees and, eventually, crippling long-term storage fees for any stock held over a year. This excess inventory also damages your IPI score, which can lead to strict limits on your FBA storage capacity.
Overwhelming Logistical Complexity: Managing inventory across dozens or hundreds of ASINs, accounting for supplier lead times, predicting seasonal demand spikes, and deciding precisely when and how much to replenish can quickly become a logistical nightmare for sellers without a dedicated, data-driven strategy.
Our Structured Approach to Inventory Optimisation
We implement a proactive, four-stage process to ensure your supply chain is a source of strength, not stress.
1. Fulfilment Strategy Development: We begin with a thorough analysis of your product catalogue, profit margins, and operational capabilities to help you choose the optimal fulfilment method for each product. We weigh the powerful benefits of FBA's Prime eligibility and fast delivery against the greater control and lower fees of FBM to create a strategy that maximises your overall profitability.
2. Data-Driven Demand Forecasting: We analyse your historical sales data, overarching market trends, and specific seasonal patterns to create accurate, SKU-level demand forecasts. This provides a clear, data-backed projection of how much stock you will need and when you will need it, removing guesswork from your planning.
3. Strategic Replenishment Planning: Based on the forecast, we create a detailed and dynamic replenishment schedule. We calculate the optimal reorder points and quantities for each product, taking into account both your supplier lead times and Amazon's FBA check-in times to ensure a seamless and continuous flow of inventory.
4. Continuous Monitoring and Adjustment: Inventory management is not a one-time task; it is an ongoing process. We continuously monitor the health of your inventory, your week-on-week sales velocity, and your IPI score, making real-time adjustments to your plan to respond to market changes and maintain optimal stock levels at all times.
Why Choose RT7 for Inventory Management?
We take the complexity and guesswork out of your Amazon supply chain. Our data-driven, analytical approach to inventory management ensures that you have the right amount of stock, in the right fulfilment channel, at precisely the right time. By expertly balancing stock availability with cost control, we help you build a more resilient, efficient, and ultimately more profitable Amazon business.
Frequently Asked Questions (FAQs)
1. What is the Amazon Inventory Performance Index (IPI) score and why is it important?
The IPI score is a metric Amazon uses to measure how efficient and productive you are in managing your FBA inventory. It ranges from 0 to 1,000 and is based on factors like your sell-through rate, in-stock rate, and stranded and excess inventory levels. A high IPI score (typically above 400-450) grants you access to unlimited FBA storage, while a low score can result in strict storage limits and costly overage fees.
2. How do you decide between FBA and FBM for a particular product?
The decision is based on a number of factors, including the product's size and weight, its price point and profit margin, its sales velocity, and your own logistical capabilities. FBA is often best for fast-selling, standard-sized items where the Prime badge is a key advantage. FBM can be more profitable for large, heavy, or slow-moving items, or for sellers who have an efficient in-house fulfilment operation. We often recommend a hybrid approach.
3. How do you account for sudden sales spikes from promotions or seasonality in your forecasting?
Our forecasting models are not based solely on historical data. We incorporate your promotional calendar (e.g., Prime Day deals, coupons) and known seasonal trends (e.g., Q4 holiday season, summer demand for certain products) into our calculations. By layering this forward-looking information on top of your baseline sales velocity, we can create a much more accurate and dynamic demand forecast.