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Amazon bill format for Inventory

sam from sam's loss saw orders pouring in for his big black friday sale he was over the morning decided to celebrate by booking a trip then sam got a notification that would detail his entire vacation plan his orders couldn't be fulfilled anymore his products had gone out of stock how could this happen why did he not have enough products to fulfill his orders two words inventory forecasting or lacked tariff examples like these happen to amazon store owners every day nothing is worse for product sales than not having products to sell it doesn't matter how nice your listing looks or how finely tuned your ppc campaign is if you don't have what your customers want to buy they're more likely to buy it from someone else versus your direct competitor hi everyone i'm sunita sundaran from sour app and today we will be talking about inventory forecasting how inventory forecasting helps amazon businesses what is the most accurate way to forecast inventory on amazon let's take a look at this graph this graph has a couple of points which include the maximum stock level this is the optimum stock level for this particular skew in this case it's at 100 then you have the reorder point at this stock level a new purchase order is to be generated this number is arrived after considering the time taken by the supplier to deliver the goods to the warehouse here the reordering point is considered to be 42 then you have the low stock warning level this is the level that is the warning level for the skew going out of stock in this case it's 50 then you have the restocking level this is the level after the reordered quantity has reached the warehouse in this case the number is 90. now imagine doing this for all the skews in your catalog the about graph does pose some difficult questions the biggest dilemma that a seller faces is related to inventory level for its products every seller wonders about these questions how much should i order or manufacture more importantly when should i start the reordering process inventory forecasting is the process that's adopted to efficiently answer these challenges so what is inventory forecasting inventory forecasting is a method used to predict inventory levels for a future time period it keeps track of sales and demand so that you can better manage your purchase orders all of this may sound pretty difficult but this becomes really straightforward if you implement the right solution now that you understand the downside and the potential negative impact of not having a system in place for proper inventory forecasting here is the upside of getting it right first advantage of having a very accurate inventory forecasting is that less inventory is needed on hand you can store inventory in bulk in amazon's warehouse and have it sit there collecting dust but that's usually not a profitable way of doing business by having data driven predictions on how much inventory you will need you will not have to purchase inventory that you don't need within a given time period this means that you can improve inventory accounting help your cash flow and even free up funds for other areas of your business the second advantage you get is more sales from fewer out of stock items if you have enough inventory on hand you don't have to worry about stockouts or back orders you can fulfill each order as soon as it's placed and provide customers the delivery that they were promised aligning with marketing on upcoming campaigns even at the channel level is critical for inventory forecasting additionally the customer experience remains a positive one when shoppers find what they're looking for and don't encounter an out-of-stock message just to leave your listing and shop elsewhere for every customer you lose by not having what they need when they need it you risk losing future business as well the third advantage is a more efficient production cycle inventory forecasting helps you manage products better across the entire supply chain when you know your manufacturer's lead time your warehouse receiving timelines and the exact stock levels for each product that you need to make a new purchase order you can work more efficiently with your supplier to gain a better understanding of the production cycle you know stockouts can grind your sales and momentum to a halt you will lose sales experience fulfillment delays receive complaints and even negative reviews but knowing when to replenish inventory isn't easy or clear-cut how much time you might end up wasting for hard data downloading and sifting through reports and then resorting to guessing how much to buy only to get warned that you didn't make the right decision at the right time being able to accurately assess and replenish inventory is mission critical for your business inventory management is more accurate when it is based out of math calculation simply guessing how many items you need to buy is definitely a recipe for disaster eventually you will get burned and seller app does this in a much efficient way by predicting what is the inventory level each product needs for your amazon brand within the inventory tab of the sales tool of your seller app dashboard you can find the inventory summary which shows the current inventory in stock the sales rate the number of days left and the time to reorder this particular product this is based on the shipping time the time that it takes for your supplier to send the products inventory to amazon's fba warehouse or if you're doing fbm the time it takes for the supplier to send it to your warehouse additionally you could also set up inventory alerts these are alerts that ensure that stock levels are where they ought to be before it's too late these are inventory expiration alerts that help you notify based on the shipping time we've automated parts of amazon's sales process to make things flow better as you know it's easy when you start but it starts to become much complicated as you begin to scale and seller app is here to help you with that this way it's not a guessing game or just ordering more inventory once it seems like you're running low you can make informed decisions and eliminate the need to expedite production schedules and shipments this forecasting model is usually more accurate because it uses past sales data to predict the future demand it can be created from the available data from the previous quarter or the year the more data that exists the more accurate the forecast inventory forecasting is done to calculate your inventory levels and allows you to save up on cost which might needlessly be tied to holding stock this helps you to optimize your inventory and manage things better thank you for watching today's video if you did find useful information in this video like the video and if you would want to watch more videos on selling an amazon inventory forecasting amazon ppc and listing optimization subscribe to star apps youtube channel and click in the bell icon to receive a notification the next time we make a video do let us know your thoughts on inventory forecasting any specific methods that you had tried and even the worst encounters you've had with inventory forecasting until the next time happy selling [Music] you