What is Amazon Logistics Inventory Management?

What is Amazon Logistics Inventory Management?

Amazon Logistics (FBA) inventory management is a crucial part of Amazon Logistics. After shipping inventory to Amazon’s operations center, sellers can store goods according to the standards provided by Amazon. Amazon logistics inventory management is related to seller cost control, fund utilization efficiency, and goods turnover rate, which affects seller revenue.

At present, Amazon has operational centers in 14 countries and regions worldwide, which can provide detailed and efficient support and services for sellers. Each major site also comes with various tools and services to help solve various cross-border logistics needs.


Key points of Amazon logistics inventory management

WOC is calculated based on three main data points used to make inventory replenishment decisions: sales speed (average weekly sales), existing inventory (deliverable quantity), and inventory in Amazon allocation. Amazon suggests that you try to keep your sustainable sales weeks between at least 4-8 weeks, and you also need to check your sustainable sales weeks based on different sales stages.

Most sellers receive their first Inventory Performance Index (IPI) approximately 15 weeks after Amazon Logistics (FBA) receives their first item, which helps them understand inventory health and assist in Amazon Logistics inventory management. At the same time, based on redundant inventory, sales rate, Amazon inventory without available information, inventory with inventory, and other information, provide inventory optimization suggestions for sellers. The Inventory Performance Index (IPI) score directly affects the Amazon logistics warehousing capacity that sellers can use.

Amazon Logistics Inventory Management

Amazon Logistics Inventory Management Plan

Amazon Logistics Inventory Control Panel (FBA Inventory)

Use tools in the seller’s account to publish products, create inventory plans, send shipments, track and monitor shipments, and remove inventory stored in the Amazon operations center.

Capacity Manager

If the seller wishes to increase storage space for the goods and believes that this batch of goods will be welcomed by buyers, they can improve their sales performance during the peak season by applying for additional storage space.


Replenishment plan

In order to help sellers quickly find solutions to their inventory problems, Amazon has designed the “Inventory Problem Self Inspection Diagnoser”: only need to self check 2 problems to quickly find the corresponding solution!

1.Clearing tools

From the perspective of recycling value, inventory is divided into sellable and unsellable. Amazon has launched a variety of clearance tool combinations to help sellers manage inventory scientifically based on the above inventory statuses

2.Amazon Clearance Promotions (Outlet Deals)

A limited time promotional offer for available inventory, where promotional items will be placed on exclusive display pages to gain a lot of exposure, making it an ideal choice for quickly clearing accumulated inventory.

 3.Amazon Logistics Rating and Resell Program (FBA Grade and Resell)

Rate unsellable inventory and resell it as second-hand goods, recover some of the value of the goods, and avoid completely disposing of the inventory.

4.Amazon Logistics Batch Clearing Program (FBA Liquidations)

For the clearance project of redundant inventory, help sellers sell it to clearing agents that cooperate with Amazon, recover about 5% -20% of the product value, and reduce unnecessary storage and disposal fees.

5.Amazon Logistics Inventory Management Costs

For all products stored in Amazon’s operations center, Amazon will charge storage fees based on the seller’s daily occupancy volume. The measured value of the products is calculated based on the size of the products that have been properly packaged and prepared for delivery to buyers in accordance with Amazon’s logistics plan policy.

Amazon Logistics (FBA) provides a variety of warehousing services and billing methods, including warehousing fees and optional paid services. Sellers can choose a variety of service combinations according to their own needs.

6.Storage fees

This includes monthly inventory storage fees, long-term inventory storage fees, and excess inventory storage fees (only applicable to US sites).

7.Optional paid services

Sellers can choose optional paid services based on their own needs, including inventory configuration services, FBA repackaging services, and refurbishment services.

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