Apparel Brand Guide to Inventory Management on Amazon - How to Avoid Big Storage Charges & Stockouts

Managing inventory for an apparel brand on Amazon can be complex, especially with multiple child variations. High storage fees, particularly during peak seasons, and stockouts that hurt rankings are two common challenges. Here’s how to effectively manage inventory to balance stock levels and optimize costs.

1. Prioritize High-Performing Variations

With different colors and sizes, some variations inevitably sell better than others. Ensuring that your top sellers stay in stock is essential for maintaining strong rankings and conversions. Here’s how:

Focus on high-selling variations: Aim to keep 60-90 days of inventory for your best-sellers, ensuring they are always available to meet demand.

Avoid excessive stock: While FBA (Fulfillment by Amazon) enhances conversion rates, too much inventory can lead to high storage fees. Aim to maintain a balanced inventory based on each product’s sales velocity.

2. Use Tools for Forecasting and Restocking

Tools like Scale Insights offer valuable features for tracking and forecasting inventory needs, helping you avoid both overstocking and stockouts. Here’s how Scale Insights can streamline inventory management:

Sales Velocity Tracking: Monitor each child variation’s sales velocity to predict when restocks are needed.

Restock Planning: Use the tool’s restock tab to input lead times and production quantities, allowing it to calculate accurate reorder dates and quantities.

3. Manage Low-Performing Variations Strategically

Slower-moving items can drain profits if left in Amazon warehouses, where storage fees quickly accumulate. For low-selling variations:

Consider removal orders: In peak times like Q4, storage fees are higher. If you’re overstocked, removal orders may help cut costs, though be aware that products returned from Amazon can incur packaging damage.

Store overflow in a 3PL: Third-party logistics (3PL) providers can help manage slower-moving stock outside Amazon. This is a cost-effective way to manage excess inventory while still being able to restock when needed.

4. Plan for Lead Times and Seasonal Peaks

Proper planning around lead times and peak seasons is essential for apparel brands. Plan for longer restock times in Q4 to ensure high-demand items don’t stock out.

Input lead times and production schedules in your inventory tool so you can restock well in advance.

Consider seasonal adjustments: During peak seasons, adjust restock levels to anticipate higher sales, avoiding potential stockouts.

5. Consider VA Support for Data Entry

With many variations, manually entering restock data can be time-consuming. Hiring a virtual assistant (VA) can help with data entry, ensuring that your Scale Insights tool is up-to-date with accurate restock and production information.

Conclusion

Effective inventory management in Amazon’s apparel sector requires a balanced approach to avoid hefty storage fees and stockouts that can impact rankings and conversions. By leveraging tools like Scale Insights, focusing on high-performing variations, strategically managing slower-selling items, and planning for peak seasons, you can create an optimized inventory strategy that keeps costs down and profits up.

For more guidance, especially on inventory management and PPC for apparel brands, contact Kickstart PPC to audit your Amazon account and enhance your brand’s strategy.

If you are looking for help with your Amazon PPC book a discovery call and free PPC Audit HERE