Amazon has several factors that influence delivering the right product to the right customer. While Amazon inventory management can add up to one factor in search results, there are many to consider.
From the high level, there are two options for inventory. The first is Fulfillment by Amazon (FBA), where Amazon tells retailers where to ship products and then manages distribution at their execution location based on sales. The second is self-actualization, where the retailer manages its supply chain and services.
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With Amazon's performance, the stock count is very accurate. However, some dealers prefer to manage their inventory through their distribution network, which we will discuss later. The challenge is to meet the expectations of Amazon Prime customers.
Amazon has done a fantastic job in its war on buyer conversion. Customers know that everything they want will be on their doorstep in two days. This is a hope that is difficult to fulfill.
While there is no penalty for low inventory ratings, customers are more likely to leave a bad review if the customer expects the product within two days and that takes two weeks. These negative reviews can be the anchor that keeps a good product at the top of the list.
Amazon allows brands to manage their inventory through their internal Amazon Inventory Management System.