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Stock level Automation: Sitruna Logistics’ advice on how to keep in stock on and off Amazon

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Mar 15, 2024
A clack at 12:20
min
Stock level Automation: Sitruna Logistics’ advice on how to keep in stock on and off Amazon

Table of contents

In the fast-paced world of Amazon and E-commerce, managing stock levels is akin to walking a tightrope. It's a balancing act between having enough stock to meet demand and avoiding excess that leads to costly storage or dead stock. At the core of this challenge is understanding and implementing effective re-ordering strategies, and that's where our expertise at Sitruna Logistics shines.

The Ramifications of Running Out of Stock

Running out of stock on Amazon is more than a missed sales opportunity; it carries substantial consequences for your Seller performance. Amazon imposes penalties on Sellers who frequently experience stock shortages, as it disrupts the customer experience and affects the platform's dependability. These penalties can range from reduced search rankings to, in serious cases, suspension of listings. This decline in visibility directly impacts future sales and can impede a seller's ability to recover even when stock levels are replenished. Thus, maintaining optimal stock levels and understanding when to re-order is not just crucial for maximising sales but also for ensuring you do not fall foul of Amazon’s ranking algorithm.

Understanding Re-Order Points and Automating Them

Re-order points are critical in the e-comm game. They signal the right time to replenish stock based on your normal, minimum, and maximum consumption rates. Setting these points correctly means never missing a sale due to stockouts and avoiding the financial strain of overstocking.

But this takes so much time (internal groan) I hear you say! Fear not. Let’s talk automation. Automation is revolutionising stock management. By automating re-ordering processes, we ensure that your inventory levels are always optimised. Our reorder level formula is as follows: average demand x lead time. This straightforward yet powerful approach enables accurate forecasting of inventory needs, ensuring that you are always a step ahead. With years of experience consulting on hundreds of different products, we will also make stock level suggestions to ensure that you are always prepared for market shifts, seasonal trends, or unexpected surges in demand.

 With Sitruna Logistics’ restock automation tools, actioning a restock is as simple as giving a 'Yes' or 'No' – we handle the rest, making your inventory management effortless and efficient.

Calculating Economic Order Quantity: Balancing Costs and Demand

Determining the EOQ for your product SKUs is a game-changer. It's about finding that sweet spot where the cost of ordering and holding stock is minimised. We will advise you on various factors such as order costs, holding costs, and demand to calculate the EOQ, ensuring that every re-order is both economically efficient and aligned with your sales strategy.

Free Up that Mental Bandwidth and Get Back to What You Do Best

In the dynamic online space of Amazon and E-commerce, mastering stock levels is more than a logistical task; it’s a strategic imperative. With Sitruna Logistics, you get a partner who understands the intricacies of E-commerce stock management. Our automated solutions, coupled with our cost-effective storage options and expert forecasting, ensure that your business isn't just running; it’s thriving. Let us take the stress out of stock management, so you can focus on what you do best – growing your business.

Our Amazon team is ready to help you succeed.

Book a discovery call with us today!

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