Managing your Amazon Supply Chain
July 23, 2021
Looking to increase your revenue? Look no further! In this blog post, we will discuss how to manage your Amazon supply chain and increase your profit margin. We'll go over the following:
A) The Importance of Inventory Management
B) Shipping Methods
C) Packaging for the Different Shipment Types
D) What Does Prime Mean?
Let's start with the importance of Inventory Management. One of the biggest mistakes new sellers make with inventory is not managing it correctly. It is tempting to buy every product you see, but this can lead to a lot of wasted inventory if the products do not sell fast enough and there are too many SKUs in your store.
The first tip for better inventory management is identifying what sells best on Amazon and then focus all of your efforts into those items. The next step is figuring out how much of that item you need to order from suppliers per shipment based on different factors like their cost, shelf life, etc., which we will go over later!
Shipping Methods:
Shipping methods should be used wisely as well so you don't end up spending money unnecessarily on shipping costs or goods getting lost during delivery. There are three types of shipments-
A) Standard Shipment
B) Expedited Shipping
C) Prime Free Two-Day Delivery (Prime Eligible Products Only!)
Standard shipments will take about a week to ship and deliver, but it is the cheapest way. If you need something faster, then expedited shipping would be your best bet! It's more expensive than standard parcels, but if there are any delays or shipment gets lost in transit by USPS, FedEx/UPS or UPS we can file an insurance claim with them for free to get your package delivered as quickly as possible. This method also includes signature confirmation on delivery so that you know when someone has received the parcel at their house. However, most sellers should use this type of shipping only sparingly because while it is faster, it is also more expensive.
Prime Free Two-Day Delivery (Prime Eligible Products Only!) is the best way to get your products delivered quickly and for free! Amazon Prime members will receive their order in two days or less with this shipping method, but only if they have purchased a product that says "FREE Shipping" on our store page. This type of delivery includes signature confirmation so you know when someone has received the package at their house. If you want to increase your sales using Prime eligible items ONLY then make sure all these factors are accounted for:
A) Cost - Keep pricing competitive so people can buy from you instead of buying direct from suppliers!
B) Shelf life - Valuable inventory expires after a certain amount of time and we want to make sure that you have the appropriate inventory!
C) Prime Eligible - Make sure your products are eligible for this type of shipping. For example, an item needs to be sold by Amazon itself or fulfilled through a third-party seller who has agreed in their contract with Amazon to offer Free Two-Day Shipping on Prime items.
Packaging for Different Shipment Types:
Packaging can also impact how quickly you get paid from Amazon so it is important to do it right! Proper packaging will not only help keep your goods safe during transit but will also improve customer satisfaction because they won't receive broken items (which means more returns)! There are three types of packages used for different shipment methods:
A) Standard Parcel
B) USPS Flat Rate Boxes (Multiple products or over 150 oz.)
C) Amazon Fulfillment Packaging Toolkit (Prime Eligible Products Only!)
The first type of packaging is for standard parcels. If your order weighs less than 16 pounds, then you will need to ship with a parcel. These are the least expensive way to package goods and they come in different sizes that can fit any size shipment including: small - up to six pounds; medium-up to ten pounds; large-up to 20 pounds). They also include extra protection so that packages won't get damaged during transit! The next type of shipping is using flat rate boxes from USPS if you have more than one product in your shipment or if you have a product that is 150 ounces heavier. These boxes are great for ensuring packages fit securely and stay safe from harm during transit because they come with plenty of padding! The last type of packaging is through Amazon Fulfillment Packaging Toolkit (Prime Eligible Products Only) which comes at an additional cost to the buyer, but includes everything needed to package goods safely in one place: Amazon's Brand Labels, Shipping Boxes, Bubble Wrap and more.
Shelf-Life Considerations:
One important factor when managing your amazon supply chain is shelf life. This can be difficult to account for because each seller will have different inventory based on their products so it's hard to say how long things should stay on shelves.
However, there are some general rules of thumb that can help:
A) If an item has a long shelf life, then it should be available for purchase at any given time in order to keep up with demand and ensure more sales!
B) If the product is perishable or short-lived then you want to restock quickly before inventory runs out so buyers don't have to wait too long before purchasing something from your store. It's important not only for customer satisfaction but also because people are less likely to return items if they know they will get them sooner rather than later. For example, we sell many different types of produce such as bananas - which tend towards quick spoilage rates when left unrefrigerated - so we would be more inclined to restock them often.
Promotional Periods
Last but not least, you want to take into consideration promotional periods when managing your amazon supply chain! Timing is everything and if an order doesn't ship during the right time of year, then it may not get enough attention from shoppers or they might buy something else instead because there are plenty of other options available for sale. This could result in a loss on your end even though the products are still profitable as long as they don't sit idle on shelves gathering dust without any buyers coming along! To combat this problem, some sellers will place orders ahead of time with suppliers (which can happen months before a product actually sells) and use promotions such as 'buy one get one free' to entice people into buying more than they originally planned.
We know a lot can go into managing your supply chain but we hope these tips helped!