Amazon, the largest online selling platform, can greatly increase the overall sales for any merchant. If you wish to step into the multi channel environment, Amazon can definitely be your best bet. However, what Amazon offers is a simple and credible platform to sell your products to millions of people who trust the company. Though they offer a comprehensive and automated inventory management or order management tool, integrating with your multi-channel environment is a challenging factor.
That is true, when selling on Amazon and you have more suppliers, you will be responsible for management and listing of all your inventory accurately . For small scale merchants, it may not be much of a problem. Yet, when dealing with large volumes of inventory, multiple suppliers and heavy sales, it can become extremely complicated and time consuming.
Managing Large Volume inventory
For proper management, it is best to manage your inventory on a daily basis. Amazon has its own inventory loading tools that allow additions and deletions. Also, you have to set a unique SKU for each of the product listed on Amazon. Once again, when dealing with multiple selling channels and large volumes of inventory, this tool is not efficient enough for your inventory management requirements.
In this aspect, third party software that offer complete multi channel inventory management can offer great help and convenience. It allows a centralized repository for all the items and related images. It also allows you to set SKUs for Amazon as well as other marketplaces.
Amazon offers price feeds to help merchants update and edit the prices according to factors such as competitors’ prices and consumers’ demands. For small volumes of products, re-pricing can be easier and less time consuming. However, with large inventory and growing sales, re-pricing can be tedious. You are required to change the prices more frequently – sometimes it can be twice in a day.
Amazon inventory management software now allows merchants to stay ahead of the competition by automatically re-pricing the products as required. Amazon Repricer follows a unique algorithm to calculate the best price depending on various factors. As a result, you are able to attract more costumers due to competitive pricing.
Shipping and Order Fulfillment
However, when an order is placed through Amazon, merchants are required to send that item on-time to the buyer. Amazon requires all sellers to meet certain metrics and its challenging to organize the orders, alerting when the item was not shipping etc… This metrics is used to award you the featured merchant status. The featured merchant status will improve your sales drastically. So how does this work, your performance will be evaluated based on the number of cancellations, on-time delivery, charge back etc…
So if you are selling through multi-channels you need to make sure you have inventory and the inventory needs to be updated or synchronized across channels. That’s why you need a better way to manage and ship your orders using one solution.
Conclusively, Amazon offers many advantages and benefits to retailers and can be an amazing platform to expand their sales and outreach. Yet, the best benefits come from proper inventory management and use of technology that can automate majority of processes related to inventory management. Cloud based systems such as SMCommerce allow you to manage inventory and orders on Amazon and various marketplaces while offering the most completive rates to your customers.