How to maximize Amazon profit with Inventory Management


Inventory management is the backbone of a well established Amazon business. You can easily cut down unnecessary costs and streamline your business operations if you can manage your inventory effectively. In this article, you will learn ways to plan and manage your inventory better for successful selling on Amazon.

Keeping the stock full is the most crucial condition that makes Amazon the number one online e-commerce portal. Any seller who fails to achieve this condition can surely be blacklisted by Amazon.

Here are the main reasons why inventory management is important for you:

  • Attract more customers – If you frequently run out of stock, your customers will shop your competitors and affect your future sales.
  • Reduce inventory costs – Having too much inventory will tie up your money in unsold goods and adds to your storage costs.
  • Reduce inventory losses – Monitoring your inventory levels constantly can reduce losses from mismanaged storage, receiving errors and employee theft.
  • Reduce spoilage – Inventory management helps you track sell-by dates and avoid losses due to selling spoiled or unsold goods.


Following timeliness in product supply and full stock lead to positive reviews and easy trading. Always avoid last-minute rush and out of stock signs on your products. Customer feedback is not easy to get but with the right professional behavior, you can earn this feedback.

In a new market of Amazon, every positive review counts. Never make the unavailability of stock, the reason to lose your valued customers.



Use Amazon inventory software 

Manually tracking your inventory on documents or spreadsheets is a cumbersome procedure as it is time-consuming and prone to error.

Inventory management software is the best way to make sure that you stock just enough; not more, not less. It also sends you alerts about manufacturing, packaging and also re-pricing. Retailers often experience a 40% drastic positive growth when it comes to trading using inventory management software.

Amazon’s Seller Central dashboard, shown below, has a set of built-in tools that you can access for free.


inventory 1


Inventory tracking & control software also stores data related to sales and profit-making. As the pricing and the sales are incorporated in the software, it can also track your profits and send you reports. These reports are generated on a daily, monthly and quarterly basis, as and when you demand it. You can also view your listing status and details on the manage inventory page. This page helps you manage your inactive/out of stock listings to understand how healthy your inventory is and how you can improve it.

Plan for seasonal sales fluctuations 

Festive seasons affect inventory because of peaks in customer demand and extended supplier turn-times. The seasonal sale is also not applicable to all products. Some products sell more while some sell less. So you should decide which of your products would make more sales while which one would sell less and store your inventory accordingly.

It’s important to forecast your inventory levels at least a couple of months in advance. You’ll want to increase ordered quantities of goods in high demand during peak sales cycles and decrease your orders on products that are out of season.

It’s also important to consider suppliers’ extended turnaround times for stock ordered during peak season. This helps you place orders with time allowed for delays due to seasonal demand and other factors such as weather. Maintaining open communication with your suppliers also helps you avoid unexpected delays and other stock issues.

Know your inventory turnover rate

Inventory turnover rate is how fast you sell through your Amazon inventory. With this estimate, you get to know how much to stock avoiding overstocking or under-stocking issues thus maintaining a proper balance.

The standard inventory rate is for three months. You should have enough stock which would last approximately at least three months since you are trading at a global level. Weather conditions play an important role in transport, and so you do not want that coming in your way. And that is why a comfortable inventory rate is of utmost importance.

A better way to predict your inventory turnover rate and reorder needs is to use a forecasting tool that tracks your products daily sales trends. Proseller built-in inventory forecasting tool tracks sales against your available stock and recommends quantities needed to fill orders over a specified time frame, all from your Seller Central dashboard.

Slow down your inventory when needed

With extraordinary Amazon promotion and repricing techniques, you can skyrocket your sales to a higher level than your expectations. But if you could not meet buyer demand with adequate supply, it might lead to negative reviews due to delivery delay or ‘out of stock’ situations.

A good sales strategy is not to get maximum customers but not to lose a single one. If you notice that you’re running out of stock during a promotion or anytime, consider increasing your prices and stopping any advertising campaigns to slow down demand.

In the short term, these measures may slow down your sales, but in the long run it reduces the possibility of hitting 0 stock levels and helps you maintain a long term brand image. 


Amazon is a game of competition and winners are those who stay competitive on Amazon. A good sales strategy is not to get maximum customers but not to lose a single one. Without proper Amazon Inventory management, this would have not been possible. It takes time to earn a good reputation as an Amazon seller, and you can’t afford to lose your reputation or hard-earned rankings because of poor inventory management. Keep your stock at manageable levels and stay ahead of the Amazon game.

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