A Closer Look at Inventory Management on Amazon Vendor Central

Inventory management is crucial in managing product inventory on Amazon’s Vendor Central platform. Vendors must understand the process and best practices of inventory management to ensure efficient operations, minimize stock issues, and maintain a positive customer experience. This article will provide a comprehensive overview of how inventory management works on Vendor Central, covering essential aspects such as purchase orders, shipments, stock availability, forecasting, inventory stock updates, and the impact of chargebacks.

Purchase Orders:?

As a vendor, Amazon will send you purchase orders (POs) indicating the quantities of products they want to order from you. These POs are generated based on sales forecasts, inventory levels, and customer demand. When selling products on Amazon, understanding the purchase order process is essential for suppliers. A purchase order is a formal request from Amazon to a supplier to procure goods. Amazon generates purchase orders based on factors like customer demand, inventory levels, sales forecasts, and contractual agreements. These purchase orders contain crucial information such as product details, quantities required, unit prices, delivery address, and any specific instructions or terms.

• Supplier Confirmation and Acceptance: Upon receiving a purchase order, suppliers should carefully review the details to ensure accuracy. If there are any discrepancies or clarifications needed, it’s important to communicate with Amazon’s purchasing team. Once satisfied with the terms and conditions, suppliers can confirm their acceptance of the purchase order.
• Shipments: Once you have the required inventory ready, you need to prepare the shipments according to Amazon’s guidelines. This involves labeling each unit with Amazon’s unique barcode (FNSKU) and packing them securely.
• ASN Creation: After packing your products, you generate an Advanced Shipment Notification (ASN) in Vendor Central. This provides Amazon with information about the contents of your shipment, such as the number of cartons, units per carton, and the carrier used for shipping.
• Shipment Verification: Upon receiving your shipment, Amazon performs a verification process to ensure that the contents match the provided ASNs. They check the quantity, condition, and compliance of the products.

Stock Availability:?

The Vendor’s responsible for ensuring sufficient stock is available to fulfill the POs received. We need to regularly monitor inventory levels to avoid stockouts or overstocking. To review the inventory levels on Vendor Central, we need to keep a close eye on the inventory dashboard here.

This dashboard provides comprehensive insights into our inventory health on Vendor Central, including the availability of sellable and unsellable units. Sellable inventory on hand represents the number of units available for sale through the vendor platform. These units are in good condition and suitable for customer purchase. On the other hand, unsellable on-hand units refer to inventory that is not in a condition suitable for sale. These units may have been damaged, expired, or deemed unsellable due to quality control issues. Unsellable units are typically designated for disposal rather than being made available for customer purchase. Amazon will take care of disposing of these units. By monitoring both sellable and unsellable inventory on Vendor Central, we can have a clear understanding of the stock available for sale as well as any units that require appropriate disposition to maintain a healthy inventory status. This visibility enables us to make informed decisions regarding inventory management, ensuring a positive customer experience and efficient operations.

Forecasting

Amazon’s new forecasting dashboard offers valuable insights into future purchase orders (POs), enabling sellers to anticipate demand and plan their inventory accordingly. With this dashboard, sellers can now proactively forecast the number of orders they are likely to receive for specific products in the coming weeks. This information empowers sellers to make informed decisions, ensuring they have sufficient units in stock to fulfill anticipated POs.

If you want to continue reading and get more information on Inventory Stock Updates, Chargebacks, and Operational Performance Dashboard on Vendor Central, click the link in the comments.