Back to Blogs

Avoiding Stockouts: Strategies for Smoother Inventory Management

In this comprehensive guide, we will delve into the world of eCommerce inventory management, focusing on strategies to keep your products in stock and your sales growing.

Image of a person walking by a warehouse room with trolley and item stock.
circles that feels like an horizon

Inventory management is the backbone of any successful eCommerce business. Whether you're a seasoned seller on Amazon and Etsy or just considering a career in eCommerce, understanding how to avoid stockouts and manage your inventory effectively is crucial.

Stockouts can be a nightmare for eCommerce entrepreneurs. Running out of popular products leads to lost sales and damages your reputation and customer trust. Imagine having a customer ready to make a purchase, only to find that the item they want is out of stock. To avoid such scenarios, you need a robust inventory management strategy.

Two men sorting inventory in a warehouse.

Understanding Amazon's Inventory Method

Amazon, being one of the largest eCommerce platforms globally, employs a unique inventory management method. Understanding how Amazon handles inventory is essential for sellers. The company offers two primary fulfillment methods: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM).

Fulfillment by Amazon (FBA): This method allows sellers to store their products in Amazon's fulfillment centers. Amazon takes care of storage, packing, and shipping, providing a hassle-free experience for sellers. This approach also enhances your product's visibility, making it eligible for Amazon Prime and improving your chances of winning the Buy Box.

Fulfillment by Merchant (FBM): With FBM, sellers manage their inventory and fulfill orders independently. While this approach provides more control, it also demands meticulous inventory tracking and order fulfillment.

How Amazon Tracks Inventory

Amazon employs various methods to keep track of inventory efficiently:

      Barcoding: Each product sent to an Amazon fulfillment center must have a scannable barcode. This barcode contains crucial information, allowing Amazon to monitor your inventory levels accurately. To learn more about barcoding, you can explore Amazon's guide on product barcoding.

      Real-time Updates: Amazon provides real-time updates on your inventory, enabling you to monitor stock levels continually. It's crucial to keep this information up to date to prevent stockouts. It's crucial to keep this information up to date to prevent stockouts. You can access these updates through your Amazon Seller Central dashboard.

      Reorder Alerts: Amazon offers reorder alerts to help you replenish stock proactively. These alerts are based on your sales history and can be invaluable in avoiding stockouts. Learn how to set up and manage reorder alerts on Amazon's Replenishment Alerts page.

Amazon Warehouse Management System (WMS)

Amazon's Warehouse Management System (WMS) is a technological marvel that streamlines inventory management further. This system uses cutting-edge technology, including robotics and AI, to organize products efficiently within fulfillment centers.

The WMS optimizes inventory placement, reducing the likelihood of stockouts. It ensures that popular items are strategically located for quick and efficient order fulfillment. Utilizing Amazon's WMS can be a game-changer for sellers looking to maintain consistent stock levels.

An image of the facade on an Amazon FBA warehouse.

Inventory Management Software: A Key to Success

While Amazon offers powerful tools for inventory management, many successful sellers also rely on third-party inventory management software. These tools provide advanced features and automation that can make a significant difference in your eCommerce journey. Here are some key benefits:

      Amazon Order Management Software: These solutions help you efficiently manage your Amazon orders, ensuring timely fulfillment and reducing the risk of stockouts. You can explore popular Amazon order management software options such as Orderhive and SellerActive.

      Multi-Channel Inventory Management: For sellers expanding beyond Amazon and Etsy to platforms like eBay, Etsy, and others, multi-channel inventory management software is essential. It allows centralized control of inventory across multiple sales channels. Consider solutions like ChannelAdvisor and eComdash for effective multi-channel management.

      FBA Inventory Management Software: Tailored for Fulfillment by Amazon sellers, these tools assist in optimizing your FBA inventory, maintaining stock levels, and avoiding storage fees. RestockPro and Teikametrics are popular choices in this category.

      Amazon Inventory Tracker: Real-time tracking of your Amazon inventory is crucial. These trackers help you monitor stock levels, receive alerts for low inventory, and prevent stockouts. Consider using tools like Inventory Lab and SellerEngine Plus.

      Inventory Management Software for Amazon Sellers: Dedicated software for Amazon sellers offers a holistic approach, combining order management, inventory tracking, and analytics to boost your eCommerce success. Sellbrite and SKULabs are excellent choices for comprehensive inventory management.

Conclusion: Empowering Your eCommerce Journey

In the dynamic world of eCommerce, maintaining consistent inventory levels is the key to sustained success. As you consider your career in eCommerce or aim to scale up your Etsy and Amazon stores, remember that professional guidance can be the difference-maker.

Our brand specializes in helping individuals like you navigate the intricacies of eCommerce. From company incorporation to ensuring constant sales and profits, we provide hands-off business management services that allow you to focus on what you do best—growing your business.

Don't let stockouts hinder your eCommerce aspirations. Embrace the strategies discussed in this article and explore the power of inventory management software. And when you're ready to take your eCommerce venture to the next level, trust our expertise to guide you every step of the way.

In conclusion, remember that avoiding stockouts is not just a strategy—it's a necessity. Take control of your inventory, harness the potential of Amazon's Warehouse Management System, and invest in inventory management software. Together with our brand's support, you'll be well on your way to eCommerce success.