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Amazon is all about inventory.

That’s a given. Without inventory, there would be no Amazon. However, don’t be easily fooled. Amazon can sometimes be like a gingerbread house. What we mean by that is this:

You’ll do novice product research, start selling items which seem very profitable, and bam! Suddenly you find yourself burning in the suspension oven.

Why? Because you didn’t do enough research and you failed to conduct proper inventory management. No worries, though. Fairytales have happy endings. Well, most of them do! We’re here to make sure that your fairytale starts happy and stays happy, with not scary suspension witch in the middle. Follow the breadcrumbs below and figure out the path to perfect inventory management!

  • Do Product Research! You can’t just pick any product and sell it on your store. There are rules and regulations. Some products you can sell, some you can’t. We have a list of blacklisted products available on our website which you check out. Amazon constantly updates that list, so make sure to check their policies regularly! Pick products which you are allowed to sell.
  • Pick Profitable Products: Pick the breadcrumbs, not the dirty stones! You do not want to pick products for your inventory that make negative profit, especially when you’re just starting out and don’t have a lot of capital. There are plenty of ways to figure out which products are profitable. We can help you with that!
  • Ask the Witch, Um, I Mean the Supply Chains for Permission: Just kidding. Supply chains are awesome. But make sure they are more awesome by calling them and asking them for Letters of Authorization. These are simply documents which let Amazon know that you’re allowed to sell those products, so next time the suspension hammer comes-a-knocking, you have proof to knock it back down!
  • Timing is Key: Certain products sell in certain times of the year. You obviously do not want to sell a Christmas tree in Summer, or Halloween toys on Easter. Make sure you have a calendar in front of you, so you can see what type of products you need to source depending on your timeline. Q4 is hell, so pay close attention to that!
  • Don’t Go All In: Test the waters before doing a kamikaze jump! Do trial test orders of products to see whether the sales are rotating. If they are, then go a bit deeper. If the rotation is constant, you might want to invest more. That brings us to our next point:
  • Eggs in Different Baskets: Remember, all eggs shouldn’t be in the same basket. What if the basket breaks? Trouble! Again, minimize the risk. Also, don’t get a whole bunch of the same eggs. Try different eggs to see which ones sell better! But, keep in mind:
  • Don’t Sell Actual Eggs: Yes, that was a metaphor. It’s better not to sell perishable items on Amazon because they are very high risk. If people don’t buy them, you’ll get dinged with suspensions. Nobody likes a rotten egg. Or tomato. Or cucumbers. Or pretty much anything that’s way past its expiration date or is falling apart.
  • Avoid Used Items: You have other marketplaces which are better suited for this. Avoid selling used products on Amazon. There are too many regulations, and honestly, it’s not worth the headache!

Let’s say you did all that and you managed to source the best products. So, what now? You still need to take care of them while they are in stock. Don’t trip! We have breadcrumbs for that too! Small ones this time, but they’ll get you there!

  • Make sure you are not out of stock. If you are, and somebody purchases that listing, apologize and let them know that you are out of stock. Do a refund. Be nice. Amazon likes nice sellers, and so do customers!
  • If an out-of-stock item has been purchased, do NOT panic and order from a retail store to fulfill the shipment! Amazon absolutely hates that. It’s better to get dinged with a negative feedback for not having something in stock, than being suspended for violating Amazon’s drop shipping policies!
  • Be positive that you’re selling what you say you’re selling! That means checking everythingand every detail. From images, to product SKU, to quantity.
  • Try not using automation services. They are not very nice, and will list products that you’re not supposed to be selling, without even telling you! Tricky little devils! They aren’t much help when you get suspended because of them either! Manual beats automation every time!
  • Ship out inventory on the correct dates. If something goes wrong, don’t leave the client hanging. Reach out to them and try solving the issue as soon as possible.
  • Speaking of shipping, we suggest doing FBA over FBM. There’s less risk involved because the ball is in Amazon’s court when the item is shipped. If they mess something up, it’s on them and not you! Pretty cool, right? Unless you order the wrong products, FBA is the perfect model!

Thanks for following the breadcrumbs up to now! You should be able to find your way through the forest. And remember, if the trees seem overwhelming, we are always here to help you reach your destination! Trust your inventory management to us, and you never have to pick out diamonds out of coal again!

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