How to track inventory levels using Amazon Seller Central

The Importance of Inventory Tracking

1. Prevent Stockouts and Overstocking: Maintaining optimal inventory levels prevents the risk of stockouts that can lead to lost sales. Conversely, overstocking ties up capital and can result in higher storage fees, especially if you use Fulfillment by Amazon (FBA).
2. Improved Cash Flow Management: Understanding your inventory levels can aid in better cash flow management, allowing you to make informed purchasing decisions and assess when to restock.
3. Customer Satisfaction: Timely fulfillment of orders and minimizing delays lead to higher customer satisfaction. When customers receive their orders reliably, it boosts your seller rating and encourages repeat business.
4. Data-Driven Decision Making: Analyzing inventory data can help you identify trends, such as seasonal demand fluctuations, allowing you to adjust your stock before peak times.
5. Compliance and Reporting: Proper inventory tracking ensures compliance with Amazon’s policies and helps you provide accurate reporting for tax and accounting purposes.

Overview of Amazon Seller Central Inventory Tracking Features

Amazon Seller Central provides several tools and features to facilitate effective inventory tracking, including:

1. Inventory Dashboard: This is your main hub to view all aspects of your inventory, including stock levels, product status, and performance metrics.
2. Manage Inventory Tool: This tool allows sellers to view and manage their current inventory levels, including quantities available, reserved, and inbound.
3. Inventory Reports: Amazon offers various reports (e.g., Inventory Health Report, Inventory Age Report) to provide insights into how your inventory is performing.
4. Restock Inventory Tool: This feature recommends restock quantities based on your sales velocity and current inventory levels.
5. Performance Notifications: Seller Central sends alerts related to performance issues, such as excess inventory or stockouts, helping you make timely adjustments.

Steps to Track Inventory Levels in Amazon Seller Central

Step 1: Access Seller Central

• Log in to your Amazon Seller Central account.

Step 2: Navigate to the Inventory Dashboard

• On the main dashboard, locate the “Inventory” tab in the main navigation bar. Click on it to pull up a dropdown menu.
• Select “Manage Inventory” from the dropdown. This will bring you to a comprehensive list of all the products you have listed on Amazon.

Step 3: Understanding the Inventory List

• Once in the Manage Inventory section, you will see columns with various details:
  • SKU (Stock Keeping Unit): Unique identifier for your products.
  • Product Name: The name of your item.
  • Available: The quantity available for sale.
  • Reserved: The quantity reserved for pending orders.
  • Inbound: The quantity shipped to Amazon but not yet available for sale.
  • Total: Total inventory including available, reserved, and inbound items.

Step 4: Monitor Inventory Health

• Click on the “Inventory” tab again and select “Inventory Health” to see a summary of how well your products are selling.
• This report will show critical metrics such as:
  • Days of Inventory Remaining
  • Excess Inventory
  • Stranded Inventory (items that are not available for sale due to listing issues)

Monitoring this report regularly can help you gauge overall inventory performance, identify slow-moving items, and avoid excess fees.

Step 5: Use Inventory Reports

• For deeper insights, go to the “Reports” tab and select “Fulfillment.” Here, you can access various reports:
  • Inventory Performance Report: Provides data on how long your inventory has been in the warehouse and whether it’s selling well.
  • Restock Inventory Report: Suggests the quantity of product to reorder based on recent sales trends and current stock levels.

  You can customize the report by selecting a date range and filtering based on SKU, ASIN (Amazon Standard Identification Number), or other criteria.

Step 6: Set Up Inventory Alerts

• To stay proactive about your stock levels, set up alerts for critical inventory levels.
• Go to “Settings” in the top right corner and select “Notification Preferences.”
• From here, you can configure alerts for low inventory, allowing you to receive timely notifications to help restock as needed.

Step 7: Adjust Listings Based on Inventory Levels

• If stock levels are low or if you need to move excess inventory, consider implementing promotional strategies. This might include:
  • Running discounts
  • Leveraging Amazon Advertising
  • Bundling products
• You can adjust your pricing through the Manage Inventory page by editing individual listings.

Step 8: Leverage Fulfillment by Amazon (FBA)

• If you’re using FBA, managing stock can be easier as Amazon handles fulfillment. However, keep track of your FBA inventory through the “Manage Inventory” section. The FBA inventory dashboard provides data such as:
  • FBA sell-through rate
  • Inventory aging
  • Restock recommendations tailored for your FBA products

Step 9: Review and Forecast Inventory Needs Regularly

• Regular reviews allow you to adjust your purchasing and stocking strategies based on performance.
• Consider creating a physical or digital calendar to remind you when to analyze your inventory levels—this could be monthly, quarterly, or aligned with peak sales seasons.

Best Practices for Effective Inventory Management

1. Forecasting Demand: Leveraging historical sales data and trends can significantly aid in accurately forecasting future demand. Use tools or data analytics software that integrates with Amazon Seller Central for enhanced predictive capabilities.
2. Maintain Consistent Inventory Updates: Ensure inventory levels are updated in real-time, especially if you’re balancing multiple sales channels. This avoids the risk of overselling.
3. Consider Safety Stock: Keeping a safety stock can be particularly beneficial for high-demand or seasonal items. Assess your business’s risk tolerance and product lead time when determining safety stock levels.
4. Utilize Automated Inventory Management Tools: Integrate third-party inventory management tools that can sync with Amazon Seller Central. Automated tools provide benefits such as real-time tracking, analytics, and reordering.
5. Regular Inventory Audits: Conduct periodic audits (monthly or quarterly) to ensure that recorded inventory levels in Amazon Seller Central match physical count. This helps in identifying discrepancies early.
6. Educate Your Team: If you have a team managing your Amazon store, ensure they are trained on how to navigate Seller Central effectively and interpret inventory data.
7. Plan for Seasonal Trends: Recognizing trends and behavior changes based on seasonal fluctuations ensures that you stock the right products at the right time, balancing between market demand and supply.

Successfully tracking inventory levels on Amazon Seller Central is integral to running a successful ecommerce business. By utilizing the tools provided within the platform, closely monitoring your inventory health, and employing best practices, you can optimize your product availability and ensure a smooth operational flow. Being proactive in your approach to inventory management can not only save costs and increase efficiency but ultimately lead to greater customer satisfaction and business growth. As you refine your management strategies and leverage data insights, your business will be well-positioned to thrive in the competitive Amazon marketplace