By participating in Fulfilment by Amazon (FBA), Amazon sellers can skip out on a lot of hard work and drudgery: packaging, shipping, delivering, processing returns, and providing customer service.
It’s easier but it comes at cost, namely higher Amazon fees. And it means managing inventory and warehouse space is even more important when it comes to optimizing your business. In this post, we’ll cover some of the best practices for Amazon FBA sellers when it comes to selecting warehouses and managing inventory in those warehouses.
Choosing the Right FBA Warehouse
The first step to successful warehouse and inventory management is choosing the right warehouse. There are a few factors to consider when selecting a warehouse for your FBA inventory:
The first thing you should consider is the location of the FBA warehouse. You want your inventory to be stored as close as possible to your customers.This way, the shipping times will be reduced, and you’ll be able to offer faster delivery options. Plus, you’ll get paid faster based on when your products are delivered.
Pro Tip: Get paid the day after shipping your Amazon sales when you use our Instant Access program. No more waiting two weeks or more after your products have been delivered. Apply now—No credit checks or commitments required.
Look for warehouses that are strategically located near major urban centers or transportation hubs. Amazon has dozens of warehouses across the US and other countries, so you should be able to find one that fits your needs.
Use a list of FBA warehouses like this one to choose a warehouse that’s close to your customers and your suppliers so you save money on shipping and reduce the time it takes for your inventory to reach Amazon’s fulfillment centers.
FBA Warehouse Size
Make sure the warehouse you choose is the right size for your inventory needs. You don’t want to pay for more space than you need, but you also don’t want to overcrowd your inventory and risk damage. This is especially true if you’re selling products with large and/or unique packaging.
Other FBA Warehouse Features
Not all FBA warehouses are the same. Depending on your products and your business model, you may need specific services such as labeling, prep, or kitting. Make sure you understand what each warehouse offers and what their fees are. Some warehouses may also have restrictions on the types of products they can handle, so be sure to ask about that too. Amazon provides detailed information about each warehouse’s capabilities on its website, so take the time to review them carefully.
Look for warehouses that offer features like temperature-controlled storage, secure storage, and customizable inventory management systems. These can help ensure that your products get to customers as quickly as possible and in tip-top condition.
Organize Your FBA Inventory
Once your inventory is in the warehouse, it’s crucial to keep it organized. This helps you keep track of your inventory levels, avoid overstocking or understocking, and reduce the risk of lost or damaged items. Here are some tips for organizing your FBA inventory:
- Stick to Amazon’s requirements: Before you begin to pack your products, you should familiarize yourself with Amazon FBA Packaging and Preparation requirements to reduce the risk of your inventory being rejected at the warehouse. That would cost you.
- Label everything: Invest in a good labeling system that allows you to easily identify each item while you’re packing. And make sure your bins and shelves are organized too. If you have any employees or coworkers, make sure you’re all on the same page regarding labeling.
- Keep popular items in-stock and within reach: Place frequently ordered items within easy reach, so they can be quickly retrieved and shipped. And if Amazon is causing cashflow problems for your business, you can use our Instant Access program to get paid out daily so you always have cash-on-hand to restock.
Monitoring Your FBA Warehouse Inventory Levels
Keeping track of your inventory levels is essential for efficient warehouse management. It allows you to avoid overstocking or understocking, which can be costly and hurt your sales. Many sellers use services like SoStocked, JungleScout, and Helium10 to help manage inventory. Here are some best practices for monitoring your FBA inventory levels:
Choose the right inventory management system: Check out the services listed above, and do your own research to find out which software will work best for you and your FBA business.
Set alerts: Set up alerts to notify you when your inventory levels are low, so you can reorder before you run out of stock. This can be done in SellerCentral or with almost any inventory management software service.
Automate your ordering: Many inventory management systems allow you to automate your ordering process, so you don’t have to manually reorder every time your inventory levels get low.
Maintain cash-on-hand for stockouts: A stock-out would slow your business down and inhibit your long-term growth. That’s why it’s so important to always have cash ready as an Amazon seller. Our Instant Access program ensures constant cashflow via daily payouts for Amazon sales. Learn more here.
Optimizing Your Shipping Process: From Warehouse to Your Customer’s Door
Shipping is an integral part of the Fulfillment by Amazon (FBA) process, and optimizing your shipping procedures can lead to significant savings in both time and money. It might also help you grow faster.
To help you achieve this, here are some valuable tips for streamlining your FBA shipping process:
Partner with a trusted shipping company: It’s essential to choose a shipping partner that is reliable, offers competitive rates, and understands the unique requirements of FBA shipments. Companies like UPS, FedEx, DHL, and Deliverr have proven track records and often provide specialized services for Amazon sellers.
Consolidate your shipments: By batching multiple orders into a single shipment, you can save money on shipping costs and reduce the complexity of managing multiple packages. This approach not only lowers your per-unit shipping expenses but also minimizes the risk of misplaced or delayed shipments.
Take advantage of FBA’s label service: Amazon provides a labeling service specifically for FBA sellers, which can save you time and ensure accurate labeling for your shipments. This service helps maintain consistency across your inventory and reduces the likelihood of errors that could lead to misplaced items or delays in processing.
By implementing these strategies and working with reputable shipping companies, you can optimize your FBA shipping process, leading to improved efficiency, reduced costs, and ultimately, increased profitability for your Amazon business.
Mistakes to Avoid When Shipping to Amazon FBA Warehouses
As an Amazon seller, it’s essential to be aware of common mistakes when shipping products to FBA warehouses to ensure a smooth and efficient process. One crucial aspect is to avoid incorrect labeling, as this can lead to misplaced or lost inventory, affecting your sales and customer satisfaction.
Additionally, ensure that your products are packaged securely and meet Amazon’s packaging guidelines to prevent damages during transit. It’s also vital to accurately estimate the shipping costs and timeframes, as underestimating these factors can result in delays and unexpected expenses.
Lastly, don’t forget to regularly monitor your inventory levels at the FBA warehouse—and your cash-on-hand—to avoid stockouts, minimize costs, and maximize sales.
Also watch out for big increases to your Account Level Reserve, the money Amazon withholds even longer than a typical payout. Our Instant Access program can help you skip this window and ensure you have cash to restock on inventory.
By being mindful of these potential pitfalls, you can optimize your shipping process and maintain a successful relationship with Amazon FBA.
Conclusions on FBA Warehouses & Inventory Management
Keeping your warehouse and inventory management under control is essential for FBA success. By following these best practices, you can keep your inventory organized, monitor your inventory levels, and optimize your shipping process. This will help you save time and money, improve your customer experience, and ultimately grow your FBA business faster.