Product availability is crucial when selling on Amazon . If an item isn't physically available in Amazon's warehouses, customers won't be able to buy it. This can significantly impact sales, as it takes three to four days to recover revenue after a product has been out of stock for just one day.
Furthermore, stock shortages also negatively impact sales rankings on the online marketplace, because Amazon prioritizes products that are available and have a reliable stock performance.
In this post, we share 10 proven ways to optimize the availability of your products on Amazon Vendor Central:
Index
- 1. Monitor and compare the availability performance of your products
- 2. Prioritize inventory allocation to Amazon
- 3. Review and correct the catalog errors
- 4. Avoid temporary storage by your carrier
- 5. Request an extension of the delivery windows
- 6. Automate your order management
- 7. Improves the accuracy of demand forecasting
- 8. Take advantage of Amazon's promotional events
- 9. Consider direct replenishment to the fulfillment center
- 10. Implement proactive out-of-stock alerts
- Conclusion
1. Monitor and compare the availability performance of your products
The first thing you should do is review your availability performance on Amazon. To do this, go to Vendor Central and click on Reports » Retail Analytics » Inventory . Analyze three key availability metrics:
- Out-of-stock products that can be replenished : Measures how often a product is shown as unavailable for purchase on the product details page when it can be replenished from a 1P vendor.
- Supplier Confirmation Rate : This measures the percentage of order volume you have accepted as a supplier for a purchase order. Amazon typically aims for a supplier confirmation rate of at least 80%.
- Received fill rate : Measures the number of units received for an order compared to the confirmed quantity. You should keep this metric close to 100%.
2. Prioritize inventory allocation to Amazon
It's crucial that your teams prioritize Amazon orders. This means training your business to treat Amazon differently than other offline retailers . This is because a stockout situation is not the same on Amazon as it is in a physical store.
3. Review and correct the catalog errors
Catalog errors, such as issues with the number of units per pallet or per box, can quickly lead to availability problems. Work with your media agency, supplier manager, or AVS brand specialist to conduct regular catalog reviews each month .
4. Avoid temporary storage by your carrier
Many carriers will consolidate your orders with others during peak season to save costs. This can cause your products to be delivered outside the delivery window specified in your purchase order (PO), potentially leading to stockouts . Monitor your carrier's Advance Shipping Notices (ASNs) and educate them about Amazon's delivery window requirements.
5. Request an extension of the delivery windows
Check your supplier delivery time in Vendor Central and, if you cannot deliver orders within the established timeframe, request an extension from your supplier manager.
6. Automate your order management
Receiving weekly orders from Amazon can be very time-consuming, especially during peak periods. Consider automating the order confirmation process to make it more efficient .
7. Improves the accuracy of demand forecasting
Work closely with your supplier manager or AVS brand specialist to improve the accuracy of your sales forecasts. This will help you better plan your inventory and reduce stockouts .
8. Take advantage of Amazon's promotional events
Events like Prime Day or Black Friday are opportunities to boost sales, but they also pose a risk of stockouts. Carefully plan your inventory and coordinate with Amazon to ensure availability .
9. Consider direct replenishment to the fulfillment center
Instead of sending all orders to your warehouse and then to Amazon, consider replenishing directly to Amazon's fulfillment centers . This can improve delivery times and availability.
10. Implement proactive out-of-stock alerts
Set up alerts to notify you when inventory levels are running low . This will give you time to react and avoid running out of stock.
Conclusion
Maintaining high product availability on Amazon is crucial for maximizing sales and avoiding losing visibility in search results. Following these 10 steps will help you optimize your availability performance and achieve success in Amazon Vendor Central. Additionally, I recommend exploring hybrid Seller + Vendor models to maintain a stock backup for each of your ASINs.
