Amazon works on a just-in-time, demand-driven inventory model. Their goal is to minimize inventory while maximizing product availability. This is done by typically keeping less than three weeks of cover on hand. Each week, they create a new 26-week forecast for each item, taking into account customer traffic, pricing, profitability and conversion rates. We analyze this large amount of data and provide regular reporting to assist in inventory planning.
We also work with Amazon’s in-stock team regularly to make sure we have accurate and robust demand forecasts, especially in peak and/or high growth periods. Through diligent planning and communication, we ensure that your products are always in stock, thus maximizing top line volume. While Amazon strives to maintain lean inventory, there are still times they may become overstocked. In this event, we work with you to quickly reduce these overstocks through various strategies such as product returns, promotions and increased advertising.