Running out of stock kills your momentum. Overordering eats your profits. Welcome to the tightrope of Amazon inventory management-where one misstep can cost you rankings, sales, and even your account health.
In this blog, we’ll cover:
. Why inventory management matters
. Best tools to track and forecast inventory
. Tips to avoid stockouts (and overstocking)
. How to keep cash flow and rankings healthy
Let’s get your inventory under control.
Why Inventory Management Is Crucial on Amazon
Inventory on Amazon isn’t just logistics-it directly impacts your sales velocity, organic rank, and ACoS.
Stockouts Can:
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Kill your Bestseller Rank (BSR)
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Pause your Sponsored Ads
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Reduce your organic keyword ranking
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Hurt your Account Health (especially with FBM)
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Lead to lost Buy Box eligibility
Overstocking Can:
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Tie up capital in slow-moving SKUs
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Increase FBA storage fees (especially during Q4)
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Result in aged inventory surcharges
A smart inventory strategy keeps you lean, agile, and profitable.
Best Tools for Amazon Inventory Management
There are dozens of tools-but these are battle-tested by 7- and 8-figure sellers.
1. Amazon Seller Central Reports
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Restock Inventory Report
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Manage Inventory Health
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Inventory Performance Dashboard
Use these to monitor stock levels, excess inventory, and sales velocity.
2. SoStocked
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Visual forecasting dashboards
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Seasonality + sales velocity + marketing calendar = accurate forecasting
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Tracks inventory by location, shipment stage, and sales channel
Great for: growing private label brands and advanced planners.
3. InventoryLab
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Inventory + profitability management
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Bundle cost-tracking + P&L insights
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Repricing + labeling + replenishment recommendations
Ideal for resellers and small FBA brands.
4. RestockPro (by eComEngine)
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Optimized for FBA sellers
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Real-time FBA inventory tracking
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Alerts for low stock, reorder points, and supplier lead times
5. Forecastly
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AI-powered inventory forecasts
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Works directly with your Amazon account
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Predicts when to reorder and how much
Tips to Avoid Stockouts
1. Set Reorder Points Based on Lead Times
Calculate reorder point as:
(Average Daily Sales × Lead Time in Days) + Safety Buffer
Example:
You sell 20 units/day, lead time is 25 days, buffer is 5 days →
Reorder Point = (20 × 25) + (20 × 5) = 500 + 100 = 600 units
2. Always Account for Seasonality
Use data from Q4, Prime Day, and other spikes to adjust forecasting. Tools like SoStocked and Helium 10 Trends help visualize this.
3. Monitor Inventory Performance Index (IPI)
IPI affects your FBA storage limits.
Keep it above 400 to avoid limits by:
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Avoiding excess aged inventory
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Fixing stranded listings
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Restocking high-demand ASINs
4. Diversify Between FBA and FBM (If Needed)
If FBA restock limits hit you hard, keep backup stock at a 3PL or warehouse for FBM backup.
5. Use Amazon’s “Restock Suggestions” (With Caution)
Amazon’s restock data is helpfulbut not perfect. It doesn’t account for:
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Upcoming ad campaigns
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External traffic pushes
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Seasonality
Always cross-check with your own forecasts.
Avoiding Overstock: Smart Tactics
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Run Lightning Deals or coupons on slow-moving stock
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Bundle older items with high sellers
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Consider removal orders before long-term storage fees hit
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Lower price to accelerate sell-through
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Avoid buying large quantities of unproven SKUs
Key Metrics to Track
| Metric | Why It Matters |
|---|---|
| Sell-Through Rate | Measures how fast your inventory sells |
| Days of Inventory | Helps plan reorder schedule |
| Storage Fees | Influences FBA profitability |
| Units Per Order | Useful for bundle planning |
| Stockout Rate | Affects listing health and BSR |
Pro Tips from Advanced Sellers
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Add buffer days for supplier holidays (especially in China)
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Use forwarders who can pre-label and prep for FBA
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Track shipment delays or customs issues
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Label SKUs with expiry dates if applicable
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Create custom dashboards with Google Sheets + API tools for larger operations
Final Thoughts
Inventory management isn’t just backend logistics-it’s directly tied to your revenue, rank, and growth on Amazon. With the right tools and tactics, you can maintain stock, reduce costs, and stay ahead of demand.
Need Help With Amazon Inventory Strategy?
At eCommercean.com, we help Amazon sellers streamline inventory workflows, forecast demand, and avoid stockout nightmares.
Done-for-you inventory audit
Forecasting setup with SoStocked & Forecastly
IPI improvement plans
📩 Contact us today for a free consultation—and never run out of stock again.