9 Proven Inventory Strategies for Amazon Sellers
Understanding the Importance of Inventory Management on Amazon
Managing inventory may not seem like the flashiest part of running an Amazon business, but it’s one of the most critical. Staying in stock means more sales, better rankings, and happy customers. Falling out of stock? That can mean lost revenue, a drop in organic visibility, and damaged seller performance.
In this blog, we’ll break down how to manage inventory on Amazon smartly and efficiently using proven strategies and the right tools—without spreadsheets taking over your life. These tips are practical, beginner-friendly, and scalable for any Amazon seller.
Amazon Inventory Management: Strategies for Staying in Stock and Maximizing Sales
1. Track Lead Times & Set Smart Reorder Points
Every time you place an order with your supplier, there’s a delay due to manufacturing time, shipping time, customs clearance, and finally, Amazon warehouse check-in.
If you don’t plan for these delays, you risk running out of stock before the next batch arrives. That’s why proper Amazon stock management is essential.
Here’s what to do:
- Ask your supplier for clear timelines.
- Add buffer days for unexpected delays.
- Work backward from your stock-out date to know your reorder point.
- Use alerts from your Amazon inventory management software or dashboard to stay ahead.
- Formula: (Lead Time × Daily Sales) + Safety Buffer
- Example: If it takes 45 days to restock and you sell 10 units per day, reorder when you have 550 units left. (Buffer may vary by seasonality.)
📌 Bonus Tip: Always include a buffer—Amazon may take longer than expected to receive inventory.
2. Forecast Demand Based on Past Trends
Guesswork is risky. Use past data and trends to predict future sales, especially during high-traffic seasons like Prime Day, Q4, or holiday promotions.
Here’s what to do:
- Review 3–6 months of historical sales.
- Account for seasonal changes and ad campaigns.
- Use Amazon inventory management systems that forecast based on actual sales data.
📌 Bonus Tip: Include ad-driven sales when forecasting future demand.
3. Diversify Your Supplier Base
Depending on one supplier is risky. If they delay, you’re out of stock—and out of the game.
Here’s what to do:
- Keep backup suppliers for critical SKUs.
- Source locally when possible for faster turnaround.
- Build solid vendor relationships for better flexibility.
📌 Tip: Having multiple sourcing options makes your inventory and warehouse management more resilient.
4. Avoid Overstocking with Sales Monitoring
Too much inventory? That eats up your cash flow and racks up Amazon storage fees. Tracking your sell-through helps balance supply and demand.
Here’s what to do:
- Monitor sales velocity: total units sold ÷ current stock.
- Review regularly to catch slow-movers.
- Flag SKUs with low turnover for clearance.
📌 Bonus: Amazon’s Inventory Performance Index (IPI) can impact your storage limits if your inventory is not well-managed — including overstocking or slow-moving products. You can check your IPI score in Seller Central: Inventory → Manage All Inventory → Performance.
5. Categorize Your SKUs by Priority
Not all products deserve equal attention. Prioritize based on volume and profitability.
Here’s what to do:
- Classify products into tiers:
- Tier 1: High volume, high profit
- Tier 2: Seasonal or medium sellers
- Tier 3: Low volume or niche
- Focus your Amazon FBA inventory management and ad spend on Tier 1.
📌 Result: Smarter allocation, fewer stockouts, better ROI.
6. Clear Aging Inventory or Dead Stock Regularly
Unsold inventory ties up capital and leads to long-term storage fees.
Here’s what to do:
- Run flash sales or create multi-buy offers.
- Use Amazon Outlet or discount coupons.
- Remove dead stock and liquidate if needed.
📌 Tip: Use this tactic as part of your eCommerce inventory management plan to reduce storage costs.
7. Bundle with Bestsellers
Move slow SKUs by pairing them with fast-sellers to increase perceived value.
Here’s what to do:
- Create product bundles with complementary items.
- Offer modest bundle discounts.
- Ensure listings are optimized for Amazon keywords and pricing.
📌 Bonus: Helps improve visibility and boosts Amazon seller inventory management efficiency.
8. Update Your Margins Based on Inventory Costs
Cost creep is real. Keep margins healthy by reviewing all costs tied to inventory.
Here’s what to do:
- Monitor COGS, shipping fees, and Amazon storage charges.
- Update pricing and profitability reports.
- Use a tool that combines Amazon inventory management and real-time profit tracking.
📌 Tool Tip: Software like KwickMetrics helps you track margins as they shift.
9. Automate Inventory Workflows Where Possible
Manual tracking wastes time and creates room for errors. Automation simplifies inventory management for Amazon sellers.
Here’s what to do:
- Use systems that integrate sales, ads, and warehouse data.
- Automate reorder triggers and purchase orders.
- Sync with your 3PL or warehouse inventory management software.
Which results in faster decisions, fewer mistakes, and scalable growth.
📌 Tool Suggestion: Use all-in-one platforms like KwickMetrics that handle Amazon inventory management, ads, and P&L together.
Final Thoughts
Inventory management on Amazon is about more than avoiding stockouts—it’s about building a sustainable, profitable business. By using the right strategies and tools, you can take control of your supply chain, increase efficiency, and boost your bottom line.
Whether you’re managing it in-house or outsourcing to a 3PL, having a clear Amazon inventory management system makes the difference between scaling smoothly and constantly firefighting.
Ready to simplify your Amazon inventory?
KwickMetrics offers forecasting, alerts, profitability insights, and inventory management—all in one dashboard. Try it today and simplify your inventory workflow.