Understanding Inventory Reports
Inventory reports deliver essential data regarding your product stocks, including information like quantities on hand, sales performance, and overall stock health. These reports help sellers determine when to restock items, identify best-selling products, pinpoint slow movers, and manage storage costs. There are various types of inventory reports in Amazon Seller Central, including:
- Inventory Reports: Provide a snapshot of inventory levels.
- Sales Reports: Offer insights into the sales volume of each product.
- Restock Inventory Reports: Suggest inventory replenishment based on sales velocity.
- Manage Inventory Reports: Provide detailed views of inventory performance and the status of your products.
Step by Step Guide to Setting Up Inventory Reports
1. Accessing Amazon Seller Central
To get started, log in to your Amazon Seller Central account. If you don’t have an account, you’ll need to create one by following Amazon’s seller registration process. This process requires you to provide your business information, banking information, and tax identification.
2. Navigating to Inventory Reports
Once logged in, navigate to the “Reports” tab in the top menu. From there, you’ll see a dropdown menu with various report categories. Click on “Fulfillment” to access the fulfillment reports provided by Amazon.
3. Selecting the Right Inventory Report
Within the Fulfillment Reports section, you’ll find different reports related to inventory management. Some of the key reports to consider include:
- Inventory Health Report: This evaluates your inventory levels and provides metrics like sell-through rate, excess inventory, and stranded inventory.
- Amazon Inventory Report: Displays all the products available in FBA and shows quantities stored in Amazon’s warehouses.
- Restock Inventory Report: Offers recommendations for what to replenish based on sales velocity, remaining quantity, and days of inventory left.
To view a specific report, simply click on the report name. Most reports allow you to select a date range or other filters to refine the data.
4. Downloading the Reports
Once you select a report, you have the option to download it in CSV format for further analysis. Look for the “Download” button typically located at the top right-hand corner of the report page.
5. Analyzing the Data
- Inventory Health Report: Analyze key metrics such as inventory turnover, excess inventory, and stranded inventory. High excess inventory can lead to higher storage fees, while stranded inventory could indicate issues with listing or the buy box.
- Amazon Inventory Report: Review the quantities of each product to ensure that you are adequately stocked. Check how many units are available, in transit, and reserved. This report is essential for maintaining optimal stock levels.
- Restock Inventory Report: Look at the “Replenish” recommendations and focus on products that have a high sales velocity and low remaining stock. This report will save you time by prioritizing critical restocking needs.
6. Setting Up Automated Inventory Alerts
To effectively manage your inventory levels, you can set up inventory alerts in Seller Central. This feature will notify you when your stock quantity falls below a certain threshold. Navigate to “Settings” > “Notification Preferences,” and from there, you can configure alerts for inventory levels based on your preferred settings to avoid stockouts or excess inventory.
7. Scheduling Reports
If you want to establish a consistent reporting schedule, consider using Amazon’s Scheduled Report feature. You can set specific reports to generate automatically at defined intervals (daily, weekly, or monthly). This is particularly helpful for high-volume sellers who need constant insights into their inventory levels. To create a scheduled report:
- Go to the “Reports” section.
- Select the report you want to schedule.
- Follow the prompts to set the frequency and recipients for the scheduled report.
Utilizing Insights from Inventory Reports
With the data obtained from your inventory reports, the next step is to leverage this information to optimize your inventory management strategy. Here are several ways to use insights from these reports:
1. Forecasting Demand
Analyze your sales data to identify trends over time. Look at how seasonal changes affect sales and how past performance can predict future demand. Use this forecasting data to plan your inventory purchases effectively.
2. Targeting Marketing Efforts
Understanding which items are your best sellers allows you to channel more marketing resources into those products. Run promotions or PPC campaigns to boost visibility and sales for those high-demand items.
3. Managing Lead Times
Track the average lead time for your suppliers. Awareness of lead times allows you to plan restocking more effectively, ensuring you have sufficient stock before demand spikes.
4. Optimizing Pricing Strategy
Use sales data from inventory reports to assess how your pricing strategy impacts inventory movement. If you notice slow-moving items, consider temporary discounts or bundling them with other products to increase sales.
5. Evaluating Fulfillment Method
If you have both FBA (Fulfillment by Amazon) and FBM (Fulfilled by Merchant) listings, analyze inventory reports to determine which method is more effective for certain products. The report could reveal that specific items perform better when fulfilled by Amazon due to faster shipping times and improved buy box ownership.
Regular Review and Continuous Improvement
Setting up inventory reports is not a one-time task; it requires regular review and ongoing monitoring of your inventory metrics. Establish a routine where you check your reports weekly or monthly to ensure you have a clear view of your inventory health and sales performance.
1. Setting Up KPIs
Establish key performance indicators (KPIs) based on your inventory reports. Common KPIs include:
- Inventory Turnover Ratio: This measures how frequently you sell and replace your stock over a period.
- Average Days to Sell Inventory: Indicates the average time taken to sell a product after acquiring it.
- Sell-Through Rate: The percentage of inventory sold during a specific period compared to the beginning inventory.
2. A/B Testing
Use A/B testing for different strategies based on your inventory reports. For instance, test varying price points, promotions, and advertising methods to see which approaches yield better inventory performance.
3. Continuous Learning
Stay up-to-date with changes in Amazon Seller Central and any newly-released tools related to inventory management. Amazon frequently updates Seller Central features and capabilities, so take advantage of their resources, including webinars, forums, and documentation.
Setting up inventory reports in Amazon Seller Central is an essential part of managing your e-commerce business efficiently. By systematically accessing, analyzing, and utilizing these reports, you can effectively predict demand, optimize your sales strategy, and streamline your inventory management system. Through regular monitoring and continuous improvement using actionable insights from your inventory reports, your business will be better positioned to respond swiftly to market changes and maintain healthy inventory levels