What are the reasons that affect Amazon’s FBA inventory performance

For Amazon online store, the number of days of inventory refers to the number of days that the estimated of inventory of all goods can be maintained by Amazon logistics. Turnaround is the number of times your Amazon logistics inventory turns over per year, given current inventory levels and sales rates. So what are the reasons that that affects inventory performance?

There are several key factors affecting the inventory performance target: 

1.Inventory Days
2.SKU to Stock up
3.Excess Products
4.A SKU with no inventory of information for sale

At this stage, there are several types of recommendations to help improve IPI(Inventory Performance Goal) : 

1.Reducing excess inventory facilitates higher profits
2.Increase the sell rate to balance the number of weeks available for sale
3.Fix the Amazon inventory without sales information to make sure the inventory is available for purchase.
4.Keeping popular goods in stock helps to increase sales

Amazon stock days

It is relatively appropriate to maintain the FBA inventory days around 30-60 days. One is to avoid stock shortage and the other is to reduce inventory overhang.

Listing is in different stages and should have different considerations.

Development period: when the link is in the development period, the daily sales increase too fast, and the inventory days will also have a relatively fast and dynamic reduction process. If the inventory is maintained on the basis of the original sales volume, the supply can be 60 days, and the link will not be out of stock rapidly due to the growth of sales volume, which gives time for subsequent inventory preparation.

Stable period: Daily sales are stable, maintain a 30-day inventory number to ensure the ability to deal with emergencies. For example, corporate buyers make large purchases, links are shared by web celebrity, and so on. These sudden events are usually unpredictable and not regular. Most of these sudden events are a spike in sales one day and then a stabilization later. 30 days or so of inventory, in addition to dealing with these emergencies to ensure that there is a follow-up time for urgent inventory. 

Recession phase: When the listing gradually declines due to the change of season, bad reviews, loss of competitive advantage and other reasons, the daily sales volume decreases and the number of FBA inventory days increases dynamically.

At this time, it is necessary to analyze the reasons as soon as possible, adjust the stock stocking strategy, control the number of stock days by reducing stock stocking or moderate promotion, and reduce the risk of stock overstocking.
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Post time: Apr-20-2021