![]() Inventory turn, or inventory turnover, is an inventory analytic metric that measures how quickly you sell and replace your inventory within a specified time. Costs may include supplier costs, shipping expenses, packaging material, labor, etc. ![]() Here’s an easy estimated margin formula to remember: Selling Price – Costs – Amazon Fees = Estimated Margin. Paying attention to your estimated margins when restocking is crucial for maximizing profitability, controlling costs, and refining your pricing. Estimated MarginsįBA fees also play a significant role in calculating your estimated margins. Don’t be caught off guard by unexpected fees! 4. When properly packaged for shipment, the size of each unit is used as the basis for calculating volume measurement.īe aware of additional fees for dangerous goods storage, aged inventory surcharges after 181 days of inactivity, and storage utilization surcharges for high inventory volumes compared to sales. FBA storage fees: Monthly inventory storage fees are determined by the average daily volume of cubic feet occupied by your inventory in Amazon fulfillment centers.Fees are based on the weights and dimensions of your product. FBA fulfillment fees: These per-unit fees are paid to Amazon for picking and packing your orders, shipping and handling, customer service, and product returns.So, it’s imperative that you understand the FBA fee structure before you commit to restocking certain items or making big investments elsewhere. When it comes to selling on Amazon, the price tag varies depending on your selling plan, product category, and the fulfillment strategy you choose to implement.įBA sellers pay for the price of convenience with higher fees. You can view and manage your capacity limits via the FBA dashboard in Seller Central. FBA Capacity LimitĪmazon’s recently introduced FBA capacity management system offers a single monthly limit for inventory storage and shipment, estimated limits for the following two months, and an option to request additional capacity for a reservation fee. Timely and accurate inventory forecasting and restocking can help you get there. To keep your account in good standing and avoid FBA storage penalties, you must keep your IPI score above Amazon’s current threshold of 400. It’s calculated as a percentage of the past 30 days that your SKU was in stock. In-stock inventory rate: This metric reflects your ability to maintain a consistent supply of your inventory.Stranded inventory rate: When Amazon has received units but cannot be sold because the corresponding listing is missing, inactive, or incomplete, the inventory is referred to as “stranded.” It’s inventory that’s stuck in place and costing you a pretty penny in storage fees. ![]() Sell-through rate: Amazon tracks your sell-through rate by taking the number of units sold and delivered over the past 90 days and dividing it by the average number of sellable units in fulfillment centers during that same period.Thankfully, there are several ways to quickly reduce your excess inventory. Excess inventory rate: If your inventory has more than a 90-day supply based on predicted demand, you’re now dealing with excess inventory, not to mention steeper storage fees.Your IPI score is determined based on your performance in four critical areas of FBA inventory management. Monitoring your Inventory Performance Index (IPI) score is an absolute must. Keeping a close eye on these inventory analytics can help you make smarter restocking decisions for your FBA business. ![]() In this article, we’ll highlight the power of inventory analytics and share how it can simplify your FBA restocking operations, ensuring that you never run out of stock or overstock and end up paying higher fees.Įstimated reading time: 5 minutes 6 Inventory Analytics to Streamline FBA Restocking Proper inventory management and restocking are crucial for the success of your Fulfillment by Amazon (FBA) business. ![]()
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