Running out of stock is a ranking killer. Holding too much stock kills your cash flow. Finding the balance is the art of inventory management.
Forecast with Data, Not Gut Feeling
Use your sales velocity and lead times to calculate reorder points accurately. Account for seasonality and sales events like Prime Day.
Managing Aged Inventory
Monitor your Inventory Age report. Liquidate or remove inventory that is approaching 365 days to avoid hefty long-term storage fees. It's often cheaper to sell at a discount than to pay ongoing storage costs.
Effective inventory management ensures you always have product to sell without tying up unnecessary capital. It's the backbone of a healthy FBA business.