When a novice just starts to do Amazon, generally speaking, the funds are relatively limited. How to control the funds is more important for the novice in the early stage. For example, the purchase price and the purchase quantity of the product determine our investment in the product. The purchase price is related to the market and the selection of products. Once the supplier and style are selected, the price will not change too much. Therefore, the purchase quantity is a key to our control of product investment.
1. New product preparation
New products need to be tested first, because we don’t know the market’s recognition of this product. The number of product shipments is relatively small, which cannot play the role of testing. If the number of shipments is too large, once the market does not recognize this product, it will cause product backlogs and unsalable, which will have a great impact on the seller’s cash flow. Therefore, for single SKU new product preparation, generally 30~50 products are sent to the Amazon warehouse for the first time. For multi-SKU products, choose one that you think is the best-selling, or find the best-selling product through preliminary research, and send 30-50 to the Amazon warehouse.
2. Stocking quantity in stable period
The packaging inventory is 1.5 times the monthly sales volume. The safety stock should be calculated based on the specific time of whether the sea transportation is fast (about 25 days) or slow (about 45 days). For air transport products, you can adopt a multi-batch, small batch replenishment mode, or a combined replenishment mode of air + sea transportation to take into account both timeliness and price. Products in the stable period must not be out of stock, otherwise the ranking will drop instantly.
3. Stocking of seasonal products
For seasonal products, it is not recommended for novices to do it, which can easily cause inventory backlogs. However, if you are doing seasonal products, you should pay attention that the number of seasonal products should cover the entire season. For example, for Christmas products, the number of products should cover the entire Christmas peak season cycle.
4. Stocking according to off-peak season
The delivery time and quantity of the product should be analyzed in combination with Amazon’s off-peak season. Generally speaking, off-season shipments can be stocked according to 1.5 times the monthly sales quantity. At this time, both Amazon’s business volume and the logistics service provider’s business volume are at normal levels, and we can ensure that our products enter the warehouse on time. However, during the peak season in the second half of the year, there is a high probability that there will be a warehouse overflow or a queue for entry, so the time wasted must be considered in our delivery plan. Especially for products that will participate in peak season promotions, they must be shipped in advance to ensure that the products can enter the warehouse within Amazon’s latest entry time.