How to improve sales and store performance through effective Amazon replenishment management
Amazon replenishment management is of great significance to enterprise sales and inventory management. A good replenishment plan can not only promote sales, but also improve store performance, which indirectly reflects the company’s supply chain management level.
The importance of inventory data
Inventory data includes domestic warehouse inventory, overseas warehouse inventory, overseas warehouse inventory in transit, and safety stock data. For companies that adopt the overseas warehouse delivery model, there are usually two warehouses: one in China and the other abroad. It should be noted that the process of shipping from a domestic warehouse to an overseas warehouse is only regarded as a transfer of goods, not a sales act. The real sales behavior means that after the platform actually generates an order, the overseas warehouse will deliver the goods to the customer.
The safety stock amount needs to be calculated based on comprehensive factors such as daily average sales data, production cycle, and logistics cycle. The specific calculation formula is as follows:
- Safety stock = (production cycle + logistics cycle + customs clearance, inland transportation cycle) x average daily sales volume;
- Average daily sales = average monthly sales / 30 days;
- Average monthly sales volume = (January sales + February sales + March sales) ÷ 3.
In addition, Amazon’s warehouse capacity limitations also need to be considered during the actual replenishment process.
How to develop a replenishment plan
The core of a good replenishment plan lies in the overall view, that is, a full understanding of the company’s business processes, and requires close cooperation among various departments. Before making a plan, the following six elements should be clear: what to do (what), why to do it (why), when to do it (when), where to do it (where), who will do it (who) and how to do it (how).
For example, assume that a certain product has performed well in recent sales. The average daily sales volume in the past month was 100 pieces. There are currently 1,500 pieces in overseas warehouses, and another 3,500 pieces are in transit and are expected to arrive within 10 days. Considering that the production cycle of the goods is 7 days, the domestic logistics time is 45 days (sea freight), plus the 7 days required for inland transportation to the Amazon operation center, in order to prevent shortages from affecting platform sales, priority can be given to goods after they are produced Arrange fast shipping for at least 9 days’ supply and strengthen communication with the production department to ensure on-time delivery.
Avoid the impact of shortages on rankings
As we all know, the out-of-stock problem on Amazon is extremely serious. It will not only cause the product to be unable to sell normally, but also reduce keyword rankings and weaken the previously accumulated conversion rate. Once out of stock for a long time, the product may lose its market competitiveness. Therefore, it is recommended that sellers formulate reasonable replenishment strategies based on the sales of their own products and use the replenishment reminder function provided by Amazon’s backend.
Detailed steps to set up replenishment reminder
- Enter the inventory page, select the product link for which you need to set a reminder to edit, and select the replenishment reminder option in the drop-down menu;
- Check the sales valuation in the past 30 days in the replenishment reminder setting interface, and you can choose to trigger the replenishment notification by product quantity or weekly sales volume according to actual demand;
- Once set up, a small bell icon will appear next to the inventory link’s sellable quantity. When the inventory drops to the preset warning value, the icon will turn red to remind the seller to restock in time.
Although cross-border e-commerce seems simple, it actually requires rich experience and skills. Especially for beginners, mastering the above basic operations is only the first step. To become an excellent Amazon operator, you need to constantly practice and adjust and optimize the replenishment plan for each product according to the actual situation.