Managing inventory is critical to the success of an FBA business.

Forecasting reorder times, reorder amounts, gauging sales velocity, seasonal periods, competition and other factors are all important metrics to evaluate.

Here’s the main takeaways from a good article I read:

They have a system

  • Top sellers have a daily system of which they’re checking inventory levels

When is more important than “how much”

  • Think more of when than how much.  Evaluate your sales velocity, and lead time.  Put an extra buffer on lead time to be safe

Safety stock

  • Things can and do go wrong with shipments.  It’s better to have a safety stock for when your shipment can get delayed.  General rule is go with 2 – 3 times the stock for the lead time.

Do homework on your first order

  • When launching new products consider promotions, giveaways, lead time, and sales velocity.  Using tools such as Jungle Scout and Camel Camel Camel

Don’t give away money

  • See if there’s any money you can save on missing shipment reconciliations and Amazon fees

For more info here’s the original article: 

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