One of the key pieces to a brand’s Amazon success is inventory. Without inventory, you cannot market your product, convert new customers or generate any sales. It is what makes the whole flywheel go. As a brand, you need to ensure that you have the best-in-class logistics team who can forecast, create and manage shipments, reconcile received inventory and secure the right Days of Inventory (DOI). Without this team of experts, your Amazon strategy will fail. Logistics is the foundation of Amazon. Here are the essential factors to consider:

  1. Forecasting: This is crucial. You need to know how much inventory to send in and when. Making preparations for big sales days and category peaks should be part of your eCommerce strategy. Without forecasting, you won’t have sufficient stock to meet the demand as your brand grows. Amazon frowns on this and the flywheel will stop spinning.
  2. Shipment creation and management: Creating order in Amazon is straightforward, but there is an art to it. When interruptions occur, you must find the solution. If you don’t solve the problem quickly, you could risk running out of inventory, which would crush your sales goals.
  3. Shipment reconciliation: This is free money and brands do not devote the time needed to acquire it. Amazon often checks-in shipments and loses inventory. There is a time-intensive strategy for collecting real compensation from Amazon when this happens. These are instant sales and something you should have a logistics expert

working on for you. We have saved brands hundreds of thousands by handling reconciliation.

There is a myriad of other facets to eCommerce logistics management, but these are the key pieces. Make sure you either allocate someone to manage all of this or find a marketplace agency to handle it for you. If you need guidance finding the right agency, we can either manage that for you or point you in the right direction. We are are here to help brands!