After understanding “when to replenish”, the next important question is how much to replenish? First, we assume that we need to replenish about 13 weeks of inventory this time, plus a 65-day delivery cycle, so the total number of days for product A is 156 days. Secondly, use the total number of days x sales rate + safety stock to get the final estimated replenishment quantity. We apply the corresponding values to the above formula. Finally, we get that the replenishment quantity of product A is 1,688 pieces.
1. Control and improve the return on investment (ROI)
Inventory will directly affect the seller’s cash flow, growth rate, and profit margin. Sellers should closely combine inventory data, calculate the ROI of products, and continuously optimize inventory management to improve ROI.
2. Flexibly switch logistics methods
Whether to use sea or air transportation is a problem that often troubles sellers. This needs to be balanced and adjusted according to product characteristics and external environmental factors.
3. Distinguish according to product performance
If the seller has many products on the shelves, it is necessary to consider increasing the safety stock of the best-selling products. In addition, hot-selling products are the focus of inventory management, and we must ensure that they are not out of stock.
4. Prepare for a rainy day
Always think about the next step. For example, sellers must have alternative suppliers so that if there is a problem with the supply of factory A, plan B can be implemented immediately.
5. Monitor core data
The basis of inventory estimation is the core factors affecting inventory: delivery cycle, sales rate, safety stock, etc. Monitoring this data is crucial. We can log in to the Amazon seller platform and view and monitor specific data at any time in “Inventory → Inventory Planning”.