Inventory Management Scenarios - Flexibility is Key Podcast #129

TL;DR

Inventory management challenges and strategies for eCommerce sellers, including issues with max inventory limits, shipping delays, and the impact on new sellers.

Transcript

Inventory management has been a really heated topic so much that the comments that are being left on my Channel right now are actually worth a video in themselves um I've got a few questions that people are asking me that I'm going to shoot um actually respond to in this video my name is stepen Pope and I'm the founder of my Amazon guy and if you g... Read More

Key Insights

• 🥹 Holding inventory due to max limits is risky, as restrictions can persist, resulting in stockouts and delayed sales.
• 🤝 Flexibility and control over inventory are crucial factors in dealing with uncertain situations in eCommerce.
• 📦 Both FBA and FBM should be considered as shipping options to adapt to changing inventory limits.
• 👶 New sellers are not exempt from the challenges presented by reduced max inventory limits.
• 🆘 Personal relationships with suppliers can help ensure the transparency and quality of products.

Questions & Answers

Q: What are the risks of holding inventory until Amazon lifts the max inventory limits?

Holding inventory is risky because there is no certainty of when the restrictions will be lifted. Delaying shipment can lead to further delays due to factors like Chinese holidays and supply chain breakdowns.

Q: Should sellers choose FBM or FBA for shipping, especially during this time?

The speaker suggests fulfilling orders by Merchant (FBM) as the better option currently because of the reduced inventory limits on FBA. Sellers should be prepared for both FBA and FBM options until the situation improves.

Q: Do the lower reductions in max inventory limits affect new sellers?

Yes, new sellers are also impacted by the lower reductions in max inventory limits. Even successful sellers may face restrictions on the number of units they can ship to Amazon.

Q: How can personal relationships with suppliers help in managing inventory and quality control?

Establishing personal relationships with suppliers can lead to a better understanding of their practices and ensure that the quality of products and agreed-upon conditions are maintained. Trust but verify is key.

Summary & Key Takeaways

• The video discusses a question from a seller who is facing a problem with their max inventory limit, as they can now only send in 500 units instead of their planned 1,200 units due to restrictions.

• The suggested options for the seller include holding the inventory, shipping to a nearby 3PL and dropshipping, or sending smaller quantity shipments directly to Amazon from China.

• The speaker recommends shipping the entire inventory to a 3PL as the best option, given the flexibility it offers and the potential for higher prices and more control over inventory.