Is Amazon FBA Software Right For You?

Amazon FBA software streamlines many aspects of your supply chain.

But, at the end of the day, it's up to you (the seller) to make timely inventory management decisions. What to reorder, how much of it, and when to drop a SKU are just a few things you're regularly considering.

In this post, we'll discuss three common approaches to Amazon FBA inventory management.

Option #1: Spreadsheets

Creating a spreadsheet provides you with a blank canvas, which can be both a good and bad thing. On the one hand, there's minimal cost associated with building a spreadsheet (other than the value of your time), and there are hundreds of formulas to make the job easier. On the other hand, a "blank canvas" can be scary for even the most tech-savvy among us. Of course, there are plenty of free templates floating around the Web (such as this FBA margin estimator), but even templates must be customized to your exact business model.

So why do many sellers eventually give up on spreadsheets? In our conversations with merchants, we commonly hear the following frustrations:

• Not scalable: As a seller's SKU catalog grows, it becomes increasingly time-consuming to download data to a CSV file, format the data, and manually synthesize it.
• Prone to Error: Spreadsheets rely on the seller's ability to build, copy, and maintain accurate formulas. Keying in a single incorrect character can yield errant data until discovered (if ever).
• Susceptible to Data Loss: All hard drives eventually fail. Making regular backups is wise, but how many merchants perform continuous backups? Very few, which means restocking analyses from the time of the last backup are always in danger of being lost.

If you're using spreadsheets, you may have considered such risks for your own business. What other options are out there? Let's look at two others.

Option #2: Amazon's Inventory Management Tools

Amazon offers a variety of inventory management tools, natively built into the Seller Central dashboard. In fact, Amazon even offers a basic restocking tool that sellers can use to try and avoid out-of-stock scenarios.

While certainly better than nothing, there are a few distinct drawbacks to relying too heavily on Seller Central tools. In the case of Amazon's "restocking recommendations" feature, merchants must still remember to manually send supplier purchase orders (POs). Unfortunately, Amazon does not provide a seamless way to automate PO creation, submission, or tracking. For example, you could have a supplier shipment already inbound to your own warehouse, in which case Amazon's restocking system might errantly advise you to restock.

This actually brings us to another important topic: sharing your confidential supplier information with Amazon. Third-party merchants are always balancing a somewhat precarious situation. Although the Amazon marketplace helps them reach new customers, Amazon itself is also a potential competitor. Therefore, the idea of loosely sharing supplier names, part numbers, lead times, and (gasp) unit costs with Amazon is unsettling, at best. We're not saying Amazon is going to steal your data, but the thought has probably crossed your mind.

Option #3: RestockPro Amazon FBA Software

Using Amazon FBA software like RestockPro offers the best of both worlds. Unlike spreadsheets, RestockPro is not a blank canvas. Upon signing up, users are guided through a quick and easy setup process. RestockPro imports all of your listing and order data via the Amazon MWS API, which means your inventory information is synchronized automatically throughout the day. Our tool refreshes in the background, eliminating the need for manual effort on your part.

Since RestockPro is completely cloud-based, you can log in from any web-enabled device. Unlike Amazon's restocking tool, RestockPro consolidates all of your restocking activities into an intuitive, color-coded to-do list. SKUs requiring immediate attention are flagged as red, while upcoming priorities are marked yellow. No more clicking from listing to listing - RestockPro does the busy work for you, so you can get back to more value-added activities.

RestockPro allows you to keep your own data at a friendly distance from Amazon. And as an added bonus, it can even help you identify and build profitable kits. Can spreadsheets or Amazon's tool do that for you? I think not.

Which Option is Right for You?

Spend time evaluating which Amazon FBA inventory management option makes the most sense for your business. In doing so, you'll be one step closer to a more streamlined, profitable workflow.

And, if you ever decide that spreadsheets or Amazon's seller tools aren't working for you, give RestockPro a try.