Do I need to prepare inventory for Amazon? How do I plan to prepare inventory?

Before starting business, new Amazon sellers need to select products. Product selection is very important, as it affects the competitiveness and attractiveness of our store. So after Amazon selects products, do they need to prepare the stock first?

Amazon needs to prepare the stock first. Amazon emphasizes "fine product selection and refined operation". It is better to launch three or five products in a refined manner than to launch 100 products in a rough manner. Every product should be built to be a hit. Since the goal is to launch a hit, the stock quantity should naturally be a little more.

How to plan stocking?

The first batch of stocking quantity needs to focus on several factors: profit margin, stocking period, sales forecast, and expected value. First, consider the profit margin of the product.

1. Fixed costs and floating costs. [Selling price - / selling price = profit margin

Tip: It is recommended to control the profit margin above 30% in the early stage. This is to allow room for budget errors in the later stage and to have room for adjustment in the subsequent price reduction method to occupy the market.

However, in the early stages of a new product, the sole purpose is not to make a profit. The sales and ranking of the list should be stabilized first, and then the profit should be considered.

2. New product preparation period: mainly includes three time stages: factory ordering time, logistics time, and shelf scheduling. The second replenishment can achieve sales linked to the first product to avoid out-of-stock. In some cases, out-of-stock products are more difficult to push than new products, so don't dig a hole for yourself.

Tip: When preparing goods for the peak season, it is best to add one week of flexible space to the factory ordering time and logistics time in addition to the factory and logistics supply. The order period for shelves is up to two weeks, and they can be prepared during this time.

3. Sales volume estimation: When tracking other competitors of the same product in the early stage, you should not only track one level of competitors, but should track and record one at the upper, middle, and lower levels, and one each at 1-10/30-50/80-100/100 and above.

This sales monitoring can be implemented if the development and operation parties are interested, and there will be a half-month tracking record before the shipment is confirmed. This can be used as a reference for shipment volume.

4. Expected value: Sellers can be divided into three levels: cutting-edge sellers, middle sellers, and marginal sellers. When entering this market, you should first have a clear positioning of yourself.

There are many factors to consider when preparing products. Everyone's actual situation is different, and the issues to consider are also different. The above four points are the factors to consider when preparing the first batch of products, please refer to them.

In general, Amazon needs to prepare the goods first, so that it can be shipped immediately when there is an order. And if you want to make it a hit, you also need to prepare more goods if you can bear the risk.