Stuck Stock: 5 Inventory Management Pain Points Solved By Amazon Consulting Firms

December 15, 2022
Written by Corin Romkey
amazon consulting firms - male businessman checking working in a warehouse with a laptop

Are you stuck in your Amazon stock issues? You’re not alone. Both new and experienced sellers face these issues from time to time. Sometimes the problem is resolved right away, but other times it takes a while.

Regardless, inventory management problems put a damper on your Amazon store in the long run. If you want to avoid that and avoid losing potential customers, study these problems and devise appropriate solutions.

Do you need the assistance of a professional? Amazon consulting firms are the way to go. Here’s how they help solve the most common inventory management pain points for sellers. 

5 Inventory Management Issues Solved With an Amazon Consulting Agency

amazon consulting agency - a pile of amazon boxes

1. Low Stock Levels or Out-of-Stock

Consumer demands are often, if not always, unpredictable. You never know when clients will make an order at the same period, so you should always be ready to meet them. Who wants to order something only to discover it’s out of stock? Your sales and listing ranks will suffer. 

Why it Happens

  • Unit count disparities
  • Inaccurate reports
  • Inaccurate forecasts
  • Poor cash flow management
  • Logistics issues

How Amazon Consulting Services Help You

  • Conduct inventory analysis 
  • Optimize your inventory to ensure you have enough units
  • Communicate with suppliers to determine their lead time
  • Prepare stock backups
  • Pause Amazon advertising efforts for a particular product listing until you get more stock

2. Too Much Stock

Overstocking is equally worse. Having a slow-moving Amazon inventory poses a lot of risks. For one, you’re paying high storage fees, especially if you’re an Amazon FBA seller. You will lose a lot of money. Overstocking also affects your Inventory Performance Index (IPI) score.

Why it Happens

  • Overestimated demand
  • Fixating too much on top-selling products
  • Poor inventory management
  • Unpredictable demand
  • Unreliable suppliers

How Amazon Seller Consulting Services Help You Solve Them

  • Increase keyword bids (while considering costs)
  • Reduce short-term prices
  • Do sales promotions
  • Create removal orders of excess stock from Amazon’s warehouses
  • Participate in Amazon lightning deals
  • Acquire the Amazon liquidations program

3. Stuck Inventory

Have you experienced stuck or stranded inventory? This means the stocks in Amazon’s warehouse are not connected to an active product listing. In other words, customers can’t purchase your items even if they’re for sale. 

Not only does it impede purchases, but you are also charged monthly fees for storing these units.

Why it Happens

  • Listing errors
  • ASIN requires approval
  • Listing is suspended
  • ASIN is restricted
  • Product recently expired

How an Amazon Marketing Agency Helps You Solve Them

Request a list of all stock inventory. There’s also a Fix Stranded Inventory section on your Amazon Seller Central account, which automatically fixes stranded stock and relists your Amazon listings. 

This can be a complex system for beginners, so never hesitate to consult an expert when customizing the settings to your advantage.

4. Stock Spoilage

Most products don’t last forever. It is especially true for products in the food, cosmetics, and supplements industries. These items have a sell-by date, indicating how long you should store them in your sales inventory. 

This is a common problem for many Amazon sellers and happens for the following reasons.

Why it Happens

  • Overstocking
  • Inventory delays (e.g., production costs or delivery supplies)
  • Defects caused by poor product design and equipment
  • Overprocessing
  • Transport waste

How an Agency Helps You Solve Them

  • Use an effective tracking system
  • Run discounts or promotions on stocks at risk of spoilage
  • Forecast accurately
  • Invest in smart software to automate inventory replenishment
  • Reduce inventory waste to detect and fix product defects easily
  • Find solutions to ensure smooth freight operations

5. Aging Storage Fees

If you can’t manage your inventory properly, you’ll rack up a huge amount of Amazon fees. The marketplace assesses its fulfillment network and calculates the age of an Amazon seller’s inventory. Then, an aged inventory surcharge applies to any inventory stored for over six months; this is a separate payment from your monthly fees.

This situation will make it difficult to profit because Amazon continues to charge you for it. It’s as if you’re only earning money to pay this fee and nothing else.

Why it Happens

  • Overstocking
  • Low-demand products
  • Stranded inventory

How an Agency Helps You Solve Them

  • Increase sales by promoting eligible products
  • Look at the IPI’s custom recommendations 
  • Remove inventory items
  • Liquidate stocks
  • Reprice
  • Create an inventory aging report
  • Product listings optimization
  • Multi-channel fulfillment

6 Considerations When Hiring Amazon Consultants

It’s important to work with an Amazon professional specializing in inventory management. But that’s not everything you need to evaluate when hiring one. Here are other pointers to review.

amazon consulting services - closeup of businessmen’s hands shaking with buildings in the background

Communication Style

Effective communication is a must when working with Amazon experts. There are complex aspects of Amazon selling you should understand and strategies you must approve before implementation. So consider your prospect’s communication style when making your hiring decision.

Can you easily understand the way they communicate? If not, are they willing to adjust to your style? Give them a complex scenario and see how they communicate the matter to you. What communication systems and channels do they have in mind? Will it make the work easier for you to discuss?

Field of Expertise

Have you already identified the pain points of your Amazon business? You need them when looking for the right Amazon expert or team. Spend some time reviewing these issues and outlining what you want your potential Amazon consultant to do for you.

Do you want to focus on Amazon SEO, inventory management, or Amazon PPC? Perhaps you need an all-rounder Amazon team? Ask yourself questions like these until you finally picture how your potential Amazon experts can help.

Level of Expertise

Many people get away with fake Amazon credentials. To protect your business, avoid them at all costs by testing their level of expertise. During the hiring interview, give them specific scenarios. Then, evaluate whether their responses can help you improve and grow your Amazon business.

It is best if the scenarios are related to your business. Don’t forget to introduce your business briefly; your prospect consultant will use this information to answer your questions.

Tool Knowledge

The best Amazon experts know the value of technology in improving your business. They heavily rely on data generated from tools to devise strategies and minimize human error. And if you have any questions or concerns about these tools, they are always willing to explain and assist you.

Also, a good consultant doesn’t always go for the newest and most expensive tool. They focus on relevance and results. For example, they can recommend tools with free or low-price options that don’t sacrifice quality. This will show that the consultant cares about both your expenses and brand growth.

Middle Man Skills

Amazon experts like account specialists and managers are known for being mediators. They relay or participate in concerns raised by Amazon sellers and Amazon employees. The Amazon marketplace is huge, so it only makes sense that communication is challenging. 

For this reason, a good Amazon consultant must be good at acting as a middleman. This involves relaying concerns and having a large network (e.g., service providers) to accomplish your business goals. 

Updated With Industry Changes

The ecommerce world constantly changes. Consumer demand, algorithms, and market trends are some of the biggest factors that drive these changes. As an Amazon specialist, your prospect should know all this and ensure you don’t miss every Amazon marketing opportunity.

Amazon sellers like you often have a full plate, so you have little to no room for catching up with industry updates. Hiring an Amazon expert will relieve you of this task so you can stay up to date while working on other business matters.

Say No to Stuck Stocks 

Your Amazon inventory isn’t merely a place to store your goods. It is also one of your business assets, so you must manage it properly. If left unmanaged, you get lower stocks, out-of-stock, overstock, stranded inventory, spoilage, and high storage costs.

These problems might seem intimidating, but you could always seek the help of an Amazon consulting firm. They are skilled at detecting and analyzing inventory issues and recommending effective solutions. Say goodbye to stuck stocks with the right consultant!

Need Help Managing Your Inventory? Work With Seller Interactive

We are well aware of all inventory management challenges, from reconciliation to refunds and reimbursements. Thus, we formed a team of Amazon brand consulting experts to make your job easier and more effective.

Avoid making costly mistakes at your expense with our reimbursement and refund services. We perform overall checks, track items, handle returns, and identify damaged goods in your stead. Rest assured, you are in the loop of what happens in your Amazon business.

If you’re ready to up your Amazon game, schedule a call with us today.

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