Inventory Management in Amazon Stores, Product Control without Physical Store

Nowadays, more and more entrepreneurs are opting to sell their products through platforms such as Amazon instead of opening a physical store. This trend has created a new type of business, the e-commerce without its own store, where the main showcase is on the internet and the inventory is managed digitally. However, even if you don't have a physical establishment, inventory control is still crucial for success! Let's see why.

Why Do You Need an Inventory System if You Sell on Amazon?

Amazon offers an excellent infrastructure for selling products, but detailed inventory control is not part of the basic package it provides. When you sell through this platform, it's easy to lose visibility of your inventory if you don't have an independent system that allows you to track purchases, sales, and replenishments.

For example, Amazon notifies you when you're low on stock, but it doesn't show you critical information such as the purchase price of the product, the date you acquired it, or if a specific lot has already been sold in its entirety. And these are data that can make the difference between a profitable business and one that operates blindly.

Having an inventory system is important for:

1. Controlling the Cost of Acquisition: Knowing how much each unit cost you allows you to define profit margins and adjust prices based on market fluctuations.
2. Keeping a Record of Inventory Entries and Exits: This way, you can monitor if any product is selling faster than expected or if you have obsolete inventory.
3. Optimizing Inventory Replenishment: Maintaining stock at optimal levels avoids stockouts that could harm your reputation and sales on Amazon.
4. Ensuring Product Traceability: Knowing the origin and destination of each lot helps you comply with regulations and improve the efficiency of your supply chain.

Although Amazon offers its own system for managing inventory, such as the FBA (Fulfillment by Amazon) program, in most cases you will need complementary software that allows you to manage the entire process in a more detailed and personalized way.

Recording Sales Made on Amazon in Your Inventory System

When selling on Amazon, you may make dozens or even hundreds of sales a day. Without an efficient system to record those sales, it's easy to lose control. This is where an inventory system comes in that allows you to update the information in real time and make quick adjustments to your stock.

To integrate your system with Amazon, you can use inventory synchronization tools that automatically register each sale made. But if you don't have an automated integration, you'll have to do the registration manually. What information is important to capture?

• Sale date.
• Number of products sold.
• Price at which each unit was sold.
• Inventory status after the sale.

This will allow you to thoroughly understand your operation and detect patterns. Is a product selling out quickly at certain times of the year? What promotions generate more sales? Is there any product that hasn't been sold in the last few months? All this information is crucial for making strategic decisions and avoiding costly mistakes.

How to Enter Your Purchases and Stock Replenishments?

In an efficient inventory system, it's not only important to record sales, but also purchases and replenishments. Although Amazon allows you to know how many units you have available, it doesn't give you a clear view of how much each lot has cost you and if prices have varied over time.

When entering purchases in your system, make sure to capture:

• Purchase price per unit.
• Acquisition date.
• Supplier.
• Lot number (if applicable).

With this information, you can monitor the profitability of each product and adjust sales prices based on historical cost. Additionally, in case of return of a defective product, you can know exactly which lot it came from and evaluate the situation with the corresponding supplier.

The FBA Program of Amazon and Its Impact on Inventory Management

The FBA (Fulfillment by Amazon) program allows sellers to delegate logistics to Amazon, which includes storage, packaging, and shipping of products. While this simplifies the seller's operation, it also poses some challenges in inventory management.

When using FBA, your inventory is located in Amazon's warehouses, so you need to have constant synchronization between your system and the platform to know the exact availability of each product and its location. Amazon will not inform you of additional storage costs or changes in real-time availability, so an independent software that allows you to have that visibility is essential.

The Evolution of E-commerce: Towards a More Intelligent Inventory Management

Just a few decades ago, a business that wanted to thrive had to have a well-located physical store and shelves full of products. Today, with platforms like Amazon, anyone can set up a virtual store and sell products globally without the need for their own location.

However, the intangible nature of these businesses does not eliminate the need for rigorous inventory control. In fact, inventory management becomes even more important, as competition is fierce and customer expectations are high. An error in stock could result in lost sales, cancellations, and a drop in the seller's reputation.

Therefore, having a robust inventory system that allows you to accurately record both purchases and sales, as well as maintain traceability and control of products, becomes a crucial competitive advantage.

An Inventory System for Amazon Sellers is More Than Necessary

Selling on Amazon is a great opportunity, but it does not exempt sellers from the need to keep detailed control of their inventories. A system that allows you to record all transactions, purchases, and sales efficiently, whether through automatic integration or detailed manual registration, is essential to avoid unpleasant surprises.

If you're thinking of selling on Amazon or are already an active seller on the platform, invest time and resources in a good inventory system. This will allow you to thoroughly understand your operation, make informed decisions, and take your business to a new level of efficiency and profitability!