How to Optimize Your Inventory Management and Stocktaking Process When Sellin...

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When trading on Amazon and other marketplaces, inventory management plays a key role. It doesn’t matter whether you use fulfillment from a marketplace, rent your own warehouses, or use the services of third-party companies. Without understanding the situation “at the moment,” it is impossible to achieve an optimal balance between supply and demand. Competent control of balances helps minimize storage costs and reduces the risk of financial losses due to surpluses.

If your product is frequently out of stock, customers may turn to your competitors, resulting in lost customers and decreased sales.

Additionally, marketplaces (especially Amazon) are very critical of seller performance. Out-of-stock items can lead to negative reviews and a lower rating. This in turn affects the store’s position in search results, customer trust, and access to privileged features and programs.

What is Inventory Management?
The main task of Inventory Management is to on page seo service organize a systematic approach to control, evaluation and management of stocks of goods in a company or warehouse. In particular:



planning and forecasting demand based on past market analysis data;
determination of minimum and maximum levels of inventory;
organization of optimal periods and volumes of purchases;
tracking the receipt of products at the warehouse and subsequent shipment;
assessing the efficiency of production and supply processes to identify opportunities for optimization and cost reduction.
All of this is extremely important for ensuring successful business operations, improving customer service levels, and directly impacts the company's financial performance.

Methods of inventory valuation
The most popular method, which (according to our observations) is used by 90% of sellers, is the Specific Identification order management system - used when each unit of goods has a unique identifier (for example, a serial number), and the cost of each unit is accounted for separately. However, there are other methods:

First-In, First-Out. Under this system, the first items to be sold (oldest in time) are considered the first to be sold. Thus, the cost of goods sold is determined by the cost of the earliest units sold.

Last-In, First-Out — the opposite of the previous one: the cost of goods sold is determined by the cost of the last ones to go on sale.

Weighted Average (weighted average) - the average cost per unit is calculated by dividing the sum of the costs of all units by their total quantity.

Less commonly used is the min/max method, which assumes that the items sold first were the cheapest/most expensive.

However, let's leave the information from economic textbooks, since in modern realities all processes have long been automated and managed through programs, applications and services.

Inventory Management Software for Amazon, Etsy, and Shopify
SellerApp is a popular platform designed to help sellers on Amazon and other marketplaces. It has extensive functionality and many ready-made solutions for the e-commerce niche:

tools for analyzing business performance (sales reports, competitor analysis, rating monitoring and other parameters).
assistance in managing keywords to optimize listings;
inventory management system and forecasting of the need for new supplies.
SellerApp also provides educational materials for sellers to help them better understand and use the platform's functionality. There is a free plan with limited functionality, but to access all the features, a subscription is required for $39-49/month ( all prices here and below are current at the time of writing ).

Zentail – positions itself as a multi-channel commerce solution, meaning it can manage sales across multiple online platforms such as Amazon, Shopify, eBay, Walmart and more from one centralized platform.

allows you to effectively create and update product listings on various online platforms;
provides tools for real-time inventory tracking and management, including automatic inventory level updates and forecasting of purchasing needs;
has the ability to automatically optimize prices to increase competitiveness in the market;
allows you to manage advertising campaigns on platforms such as Amazon Advertising.