Amazon sellers at large have expressed their dissatisfaction over the array of marketplace costs and expenses that have played a brutal role in minimizing their profit levels to scratch. Taking a closer look at the issue, it has been discovered that most of these unhappy sellers are relatively new and inexperienced and thus, are yet to learn the art of cost control in this platform.

Understanding the cracks and crevices from which profits tend to seep out is the first step to addressing the issue with success, with greater importance given to the rather imperceptible areas of drainage than otherwise. Mismanaged inventory is one such area that can cause massive drainage in profits making it imperative for sellers to get a hold of the same from the first day on.

Here are 5 ground rules of lowering Amazon inventory costs; tips that have helped thousands of sellers get a grip back on their profits…

Integrating with supply chain source –

Inventory management starts with the supply chain source and not the warehouses. Being in tune with the supply chain source can help sellers stock their warehouses wisely while preventing expensive mistakes like over stocking.

Learning the science of demand prediction –

Proper demand prediction is a strategic tool that can help sellers stock popular / not-so-popular products in volumes that are assured to move smoothly without causing stagnation or bottlenecks. Improper approach to demand prediction or dismissing the importance of the same can increase expenses in the direction of stocking products that are not bringing in any profits and vice versa.

Trimming inventory units in warehouses based on demand prediction –

Bulking up inventory stock in Amazon warehouses is never a good idea because you may end up paying a bloated warehouse rent and management cost. If you have established proper integration with your supply chain source and are good in predicting demands, streamlining your inventory in Amazon will not be a problem.

End to end integration –

This is the key to a balanced and harmonized approach to inventory management in Amazon. In fact, the importance of end to end integration is applicable for all ecommerce marketplaces whether you sell on Walmart marketplace or any other platform for that matter.

Associated factors like proper listing, usage of pricing tools and softwares solutions, profit calculation tools etc. also goes a very long way in helping sellers cut inventory costs while maximizing their profitability by significant extents.