There’s nothing more crucial for Amazon sellers than having accurate inventory levels.
Read on to learn why having precise inventory forecasting and levels in AWD is crucial if you’re doing business on Amazon.
✅ The proper inventory levels will allow your brand to optimize fulfillment performance and lower costs
One of the criteria for an Amazon brand to be eligible for Prime shipping is whether it has optimized its order fulfillment performance. When a brand can mitigate common challenges with fulfillment, such as “inadequate inventory management…inventory discrepancies…persistent backorders…frequent stockouts,” it signals to Amazon that customers can trust your store.
One way trustworthy brands are rewarded?
If your brand demonstrates reliable and precise inventory levels, your items can qualify for Prime shipping benefits. This includes faster delivery (thanks to Amazon’s vast distribution network), as well as increased customer trust, satisfaction, and conversion rates.
Additionally, by streamlining your fulfillment, your brand can also benefit from lower fulfillment costs by minimizing expensive emergency replenishment shipments to FBA centers and avoiding MCF surcharges when inventory levels are insufficient.
✅ You’ll be able to avoid stockouts and overstock with accurate inventory levels
When top-selling items are OOS, your FBA business risks hurting your IPI score, losing your page rank, diminishing your reputation, and wasting ad dollars. Meanwhile, when you overstock slow-selling products, you’re stuck paying costly long-term storage fees.
By improving your inventory fulfillment, your Amazon business can avoid stockouts and overstocking situations and guarantee stock level optimization.
When your business can ensure that your products will be available to meet demand during peak times, you can negate wasteful storage costs and reduce the risk of excess storage fees or long-term storage penalties at FBA.
✅ Correct inventory levels help with improved sales velocity, rankings, and increased “Buy Box” win rate
AWD helps automate inventory distribution across multiple Amazon fulfillment centers—but that’s only helpful if you have the stock you need.
When you consistently have the actual amount of inventory you need to keep customers content, you can start increasing your sales velocity. Also, when your stock levels are optimized, you’ll naturally increase your organic product ranking—Amazon’s algorithm prioritizes products with consistent availability.
Amazon prioritizes FBA sellers with inventory available in AWD when selecting Buy Box winners. If you keep your high-selling products in stock, you can automatically qualify for the “Buy with Prime” button, which improves visibility, customer acquisition, and conversions. Take it from just one seller success story (there are millions). “After adding Buy with Prime, we saw an immediate conversion lift…seeing a 40% jump in conversion was astonishing to us.”
✅ The bottom line? Optimizing your AWD inventory allows for better forecasting and replenishment
Inventory Optimizer utilizes over 100 industry-leading, AI-powered, hybrid algorithms and up to 4 years of your own sales data to get the most accurate inventory forecasting possible. Our purchasing recommendations include all inventory sources, including AWD, inbound to AWD, and Multi-Channel Fulfillment. If you’re an Amazon seller relying on AWD for accurate inventory forecasts, you aren’t getting the whole picture.
See what Inventory Optimizer can do for your brand by scheduling a demo.
