Amazon FBA is your go-to solution when you don't have your own logistics team, a fleet of delivery trucks, and a warehouse where you can store your products. Many e-commerce businesses increase their profit margins by leveraging Fulfillment by Amazon - both new sellers and existing retailers. If you are an Amazon seller and currently selling on FBA then this video will be very helpful for you.
In this video, we have talked about the 2 most important parts of FBA Inventory planning that you must know.
The First one is the Inventory Performance Index (IPI) score
We have focused on:
✅ What is an IPI score
✅ Why it’s so important
✅ And how you can increase the ipi score?
The Second one is re-stock items to FBA inventory
We have focused on:
✅ How you can find out products that are recommended by amazon to re-stock on FBA
Amazon inventory planning is about knowing how much inventory to send to a fulfillment center and when and how much to reorder to stay in stock at all times without expensive overstocking. You won't be penalized if you run out of stock. But your seller performance metrics and ranking will be affected, but of course, you will lose out on potential sales.
The Inventory Performance Index, or IPI, is a metric to gauge your inventory performance over time.
It’s very important because if you fail to meet the required score or the minimum threshold, you will restrict the inventory storage as well as you will have to pay higher storage fees. So you should take care of this matter very seriously.
Let's check this out from Seller central.
✅ From the Inventory tab, go to Inventory planning. Here you will find detailed information about your Amazon fulfilled items.
✅ From the inventory dashboard, you will be able to see the Summary of your key inventory metrics and opportunities to improve inventory efficiency and in-stock performance.
✅ From the performance tab, here you will be able to see the Inventory performance index (IPI) summary. The IPI measures how efficiently and productively you manage your FBA inventory.
To be more productive you must increase your IPI score by taking the recommended actions from Amazon, the 4 most important factors that can help boost your IPI Score.
✅ Removing excess inventory from the Amazon warehouse
✅ Increasing the sales of FBA items
✅ Fix Stranded listings to make your FBA inventory available for purchase on Amazon,
✅ Keep your popular products in stock to avoid lost sales.
Now let's see how to go to Restock inventory and see the restock recommendations. Your restock recommendations are adjusted to fit within your restock limits for each storage type.
✅ Download the report. Click on generate the report.
✅ Open the downloaded file in an excel sheet.
Here you will find many useful data regarding your items in FBA Warehouse. From column AA, you will find the replenishment quantity recommended by Amazon. From column AB, you will find the Recommended ship date for that specific items. Let's sort it out based on the nearest shipping date.
We can create shipping plans for these items.
To create shipping plans and send recommended quantities to Amazon Please follow the video instructions very carefully.
If you require any additional assistance, please leave a comment in the comment section, and we will get back to you with the proper solution.
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