3 Tips for Better Financial and Amazon Inventory ManagementSeller Labs
Data and metrics are at the forefront of every Amazon sellers’ mind. Whether it’s data from advertising, keywords, reviews, sales, returns, or shipments and inventory, there’s really no end to it all.
Staying organized and on top of your business is just one of the necessary ingredients to succeed. Selling on Amazon is difficult; it’s not as easy as some people make it seem. That’s why it’s imperative for you to simplify the complex aspects of your business’s financials and Amazon inventory management.
To help you do just that, here are three tips to simplify your data and reporting on Amazon.
1. SEE WHAT PRODUCTS MAKE YOU MONEY BY VISUALIZING YOUR COST OF GOODS SOLD (CoGS).
CoGS is an important metric because it measures your overall profitability. It evaluates how efficient you are at managing fees outside of Amazon in the production process.
You can gain a clearer picture of your net profit by uploading your manufacturing expenses to find your actual profitability. To do this, upload your CoGS directly into the Seller Labs Pro Performance Center, and view a product’s detail screen. The Performance Center visualizes a product’s performance and financials in easy-to-digest graphs over time—so you can see what is performing at a glance.
You can view metrics like sales per day, net margin, and net profit for all of your products. This will give you a holistic view beyond what Seller Central can tell you.
2. DISCOVER PROMOTIONAL OPPORTUNITIES BY PRIORITIZING PRODUCTS BY PERFORMANCE.
Running promotions can be a great way to boost your sales rank on a sluggish product. It’s also one of the best ways to clear out stagnant inventory that’s costing you FBA storage fees. But how well do you know which products are making you money versus costing you money?
The easiest way to identify slow products is by combining product profitability information with conversion data to determine where the greatest opportunities lie. So how can you identify slow products and prioritize them based off of performance for promotions?
Using the Performance Center’s Financial reports (like net profit margin, net sales and net profit) you can combine metrics in your data with the Promote report. This report shows you the products that have high conversion rates (greater than 25%) but need more traffic. Once your data has been collected, the Performance Center will show you where the greatest opportunities lie. The optimal contenders for promotions are the products that convert and net you the most profit.
3. AVOID STOCK OUTS AND STORAGE FEES BY SIMPLIFYING YOUR AMAZON INVENTORY MANAGEMENT.
The average Amazon seller in the US is selling 36 different ASINs across multiple marketplaces. If you sell 20 ASINs on 7 marketplaces, for example, that’s 140 different products to keep tabs on- all of which require your time and energy.
Saving time isn’t the only benefit you’ll gain by simplifying your Amazon inventory management. If you choose the right inventory management system, you can save money (and even make money!) by avoiding pesky FBA long-term storage fees and unexpected stock-outs.
The Performance Center will notify you when your inventory levels are low—prompting you to reorder. Also included is tagging, which allows you to organize your catalog by product line or seasonal stacks. This is especially useful during Q4 when most sellers’ sales skyrocket. The Seller Labs Pro Performance Center will view metrics like stock, lead time, and projected out for all of your products, no matter what time of year.
You can implement all of these tips inside of Seller Central: you can figure out what products are making and losing you money, analyze product performance to uncover promotional opportunities, and manage your inventory to see if you’re going to incur storage fees or stock out. But you can’t do all of this while filtering your data simultaneously through 10 unique reports like you can with the Performance Center. What’s more, you can filter your data from multiple marketplaces to be displayed in a single dashboard.
Ready to take the next step? If you’re managing inventory the old way and are ready to get a clearer picture of your financial, we recommend trying Seller Labs Pro completely risk free—for 30 days today.
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