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Inventory Management 101 for FBA and Shopify Sellers

By April 26, 2019November 13th, 20223 Comments

Inventory management has been a crucial success meter for FBA and Shopify sellers. This means inaccurate stock levels lead can lead sellers to miss lucrative sales opportunities, which might not be available later. Inventory management cannot be addressed without taking into account that how products made it to your inventory in the first place. You must evaluate your product research method and note whether you have assigned sufficient importance to sales rank.


A few FBA and Shopify sellers pay close attention to sales rank when they are researching products to source. However, most sellers fail to take rankings seriously and that is why they end up making risky inventory investments. Generally, sellers ignore products that have a ranking of lower than 10,000 when it comes to top-level categories. This is because there is a small chance of those products being in demand. Although there are roughly a quarter of a million products available on Amazon, only a small percentage of them actually sell well.
Moreover, the products which rank high are more volatile, which means the rankings fluctuate frequently. A ranking in double or single digits does not move nearly as much, making sellers believe that once they ship something to FBA, it will sell automatically. Therefore, in order to move forward, sellers must commit to act more conservative in their investments. Think of sales rank as an essential element in your decision making process.

In addition to that, starting small is an effective business strategy that applies to all Shopify and FBA sellers. Taking baby steps before you walk or run is crucial for mitigating risk. This is the reason why a large number of Shopify and FBA sellers start by shipping small quantities and also receive and sell test orders before they invest in huge amounts of inventory. There is no guarantee that all products will be profitable or break even, in the business world. This is why it is logical to only send the products to FBA or Shopify on which the sellers can afford a loss.
On the contrary, sellers must be ready to seize the moment when they have identified a winning product. Initially, all FBA and Shopify sellers must guarantee they have the cash flow available to source the right products when the right time comes. Moreover, sellers must make sure they have sufficient time to ship a hot-selling item.
Not just that, with the right tactics and persistence, FBA and Shopify sellers slowly establish their brand. As more orders and deals materialize with time, there comes a time when FBA and Shopify sellers must use automation or useful software to ensure smooth inventory management or business operations.

Automate Your Inventory ManagementUndeniably, inventory management is the key to optimizing and increasing sales. The use of multiple tools or software can lead to a complicated daily inventory and order management system. With the progress of cloud-based technology, Shopify and FBA sellers can conveniently automate their complex inventory management tasks for increasing accuracy in fulfilled orders. Choosing the right kind of automating inventory management system is extremely useful to avoid any confusion about the current stock requirement for processing all orders in time. Inventory management has been a crucial success meter for FBA and Shopify sellers. This means inaccurate stock levels lead can lead sellers to miss lucrative sales opportunities, which might not be available later. Inventory management cannot be addressed without taking into account that how products made it to your inventory in the first place. You must evaluate your product research method and note whether you have assigned sufficient importance to sales rank.
A few FBA and Shopify sellers pay close attention to sales rank when they are researching products to source. However, most sellers fail to take rankings seriously and that is why they end up making risky inventory investments. Generally, sellers ignore products that have a ranking of lower than 10,000 when it comes to top-level categories. This is because there is a small chance of those products being in demand. Although there are roughly a quarter of a million products available on Amazon, only a small percentage of them actually sell well.
Moreover, the products which rank high are more volatile, which means the rankings fluctuate frequently. A ranking in double or single digits does not move nearly as much, making sellers believe that once they ship something to FBA, it will sell automatically. Therefore, in order to move forward, sellers must commit to act more conservative in their investments. Think of sales rank as an essential element in your decision making process.

What to DoIn addition to that, starting small is an effective business strategy that applies to all Shopify and FBA sellers. Taking baby steps before you walk or run is crucial for mitigating risk. This is the reason why a large number of Shopify and FBA sellers start by shipping small quantities and also receive and sell test orders before they invest in huge amounts of inventory. There is no guarantee that all products will be profitable or break even, in the business world. This is why it is logical to only send the products to FBA or Shopify on which the sellers can afford a loss.
On the contrary, sellers must be ready to seize the moment when they have identified a winning product. Initially, all FBA and Shopify sellers must guarantee they have the cash flow available to source the right products when the right time comes. Moreover, sellers must make sure they have sufficient time to ship a hot-selling item.
Not just that, with the right tactics and persistence, FBA and Shopify sellers slowly establish their brand. As more orders and deals materialize with time, there comes a time when FBA and Shopify sellers must use automation or useful software to ensure smooth inventory management or business operations.

Automate Your Inventory ManagementUndeniably, inventory management is the key to optimizing and increasing sales. The use of multiple tools or software can lead to a complicated daily inventory and order management system. With the progress of cloud-based technology, Shopify and FBA sellers can conveniently automate their complex inventory management tasks for increasing accuracy in fulfilled orders. Choosing the right kind of automating inventory management system is extremely useful to avoid any confusion about the current stock requirement for processing all orders in time.

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