Amazon.com is undoubtedly the number one name in ecommerce. It has dwarfed every other ecommerce platform. Thus, if you are thinking about becoming —or already are — an Amazon seller, you are on the right path to increasing your turnover. How can we help take you further? Here are 12 reasons why using the Cin7 inventory management system for your Amazon business is beneficial.
Reason 1: Centralized inventory management
How would you feel if you bought something on Amazon and received an email two days later telling you that your item was out of stock? Not good, right? You probably wouldn’t order from that supplier ever again.
If you are a supplier, you wouldn’t want any of your customers to go through that experience.
As a supplier, you might be selling on multiple channels. Without a centralized inventory management system, you might find yourself selling a particular product on more than one of these channels simultaneously, possibly overselling and leaving you unable to fulfill orders. The damage to your reputation as a business that a miscalculation like this can cause cannot be overstated, but it is something that can be easily avoided.
Cin7’s inventory management software allows you to maintain multiple points of sale – either physical or online – on a single system. It updates your inventory in real time on all platforms. This real-time inventory accounts for sales, purchases, transfers, and loss of goods.
Reason 2: Higher visibility
When you have an integrated inventory management system, you have a holistic view of your inventory, a complete overview that clearly shows you what’s been purchased, sold, and is on hand. It also lets you know the exact point at which you need to reorder stock.
An added benefit of Cin7 software is that it gives you up-to-date sales figures for each platform you use. When it comes to Amazon, Cin7’s software has an integration tool that tells you exactly how much you’re selling on that marketplace and when a sale has taken place. This information – found on your Cin7 reports – lets you know when to increase or decrease your inventory. The result: profit maximization for your company.
Reason 3: Cost control
If you use Amazon Central, you can add or delete your listings on its Excel sheet online. However, those changes only apply to Amazon.com. They won’t have any effect on other selling platforms you use. To do that, you’ll have to make changes to each platform you use individually.
If you use Cin7’s inventory management system, however, you can add or delete an item with just one click. The software lets you make alterations to your stock on all the platforms you use simultaneously. Being able to do this not only reduces administrative efforts, it can drastically lower your cost.
Reason 4: Product identification
Barcodes and radio frequency identification (RFID) tags uniquely identify every product in the inventory. This type of identification provides product details, including size, color, material, and warehousing information. These barcodes and RFID tags help keep track of your product as it moves through the system, meaning that you’ll know where an item is at all times. It also means you’ll be made aware if something is lost or stolen.
Reason 5: Reports and forecasting
Inventory management systems have a specific feature called reports and forecasting. The Cin7 software has higher accuracy in forecasting than others. The way it works is that the system tracks the historical data entered and uses it to make predictions about future needs for your business.
These forecasts apply to inventory needs and sales predictions on every platform. Reports of this kind help you make better business decisions, decisions that will lead to greater success.
Suppose you only sell on Amazon and use Amazon Central to manage your inventory. While that’s OK on one level, Amazon’s system won’t let you analyze your stock as easily as you could with a general inventory management system. The deeper knowledge a general inventory management system can give, like forecasting and detailed reporting, allows you to make informed decisions that could help grow your business.
Reason 6: Assisted decision making
Strategic decision making is probably one of the most complex, and important, parts of running a business. The key issue is to place orders in such a way that your products are neither overstocked nor understocked. Cin7’s inventory management system can help with these decisions by:
- Calculating reorder points (ROP) for each of your products.
- Giving alerts when the stock reaches ROP.
- Programming automatic reorder emails that are sent to suppliers when the stock reaches the ROP.
- Tracking price changes.
- Tracking the inventory on each selling channel.
The inventory management system can ensure you don’t run out of stock on any platform, including Amazon. It can also reduce the time involved in making decisions about reordering.
Reason 7: Integrations
A first-rate inventory management system allows integrations with third-party software and apps. If your inventory management system doesn’t work with other apps you use in your daily routine, you will find yourself in trouble. Cin7 integrates with over 700 apps.
Reason 8: Payment portal
Cin7’s inventory management systems has an integrated payment portal that can receive online payments. This helps you maintain account receivables, handle orders through the supply chain, and email invoices to customers. Automating the payment portal speeds up the payment process and fulfillment of the order. The system also lets you email payment links to customers. This not only provides an easy-payment method for customers, it gives them an instant confirmation of their order, assuring them that they can trust you.
Reason 9: Customer satisfaction
Customers who don’t have issues to face when they make a purchase, like problems with delivery and payment, tend to develop trust in you as a seller and are more likely to return for their next purchase. Cin7’s inventory management system takes care of all these aspects of your business, which promotes maximum customer satisfaction. This frees you up to concentrate on improving the quality of your products.
Satisfied customers don’t just give you repeat orders, they are also more likely to give you positive feedback online, helping to attract new customers. Increasing your overall customer base this way will lead to higher turnover. Online reviews, in fact, are very important to online marketplaces. With Amazon, for instance, it’s been observed that 90% of customers typically read reviews before visiting a business or making product decisions.
Reason 10: Calculation of Amazon commission
Amazon lets you sell your products on their platform for a commission. When customers make a purchase from the Amazon website, the full amount they pay goes to the online marketplace. Before Amazon passes that money on to the seller, they deduct their commission. The calculations for these sales and commissions are straightforward if you only sell a couple of products. But they become more complicated the more your business grows. Cin7’s inventory management software reduces your calculation woes. It will help you track your sales and keep on top of commissions Amazon has deducted.
Reason 11: Fulfillment by Amazon (FBA)
Amazon has warehouses that can store and ship your products to your customers for an extra charge. The system is called Fulfillment by Amazon or FBA. If you choose to sell your products through FBA, Cin7’s inventory management system will let you track:
- FBA shipping plans,
- Route orders for dispatch from the stock location closest to the customer, and
- Direct Fulfillment (for Amazon Vendor).
The processes for selling, shipping, and payments can be made easier when you use a reputable inventory management system for Amazon sales.
Reason 12: Built-in electronic data interchange (EDI)
Electronic data interchange (EDI) is the electronic exchange of information between two or more companies in a standardized format. An Amazon seller is a person who sells goods they manufacture. An Amazon vendor is a business who resells or trades goods manufactured by somebody else. The customer is fully aware if they’re buying from a manufacturer, the seller, or a vendor.
If you’re a manufacturer and you have multiple vendors, it can be difficult to manage their accounts and keep track of the stock they have. Cin7 Amazon integration helps you by managing the EDI with your vendors easily. It allows you to do the following:
- Product mapping,
- Order downloads,
- Order status updates,
- Stock adjustments,
- Stock availability, and
- Bill of materials (BOMs) for product bundles.
Thus, whether you’re a manufacturer with multiple vendors or are a vendor with multiple suppliers, Cin7’s inventory management software makes it easier to run your business.
Final thoughts on 12 reasons why using the Cin7 inventory management system for your Amazon business is beneficial
A reliable inventory management system should reduce administrative expenses and clerical tasks. If you sell on multiple channels, being able to organize your inventory to make sure you aren’t overstocked or understocked is crucial.
Amazon is one of the biggest ecommerce platforms, and listing your products with them can widen your market. Using a Cin7’s inventory management system is a good way of managing your online and offline points of sales. It helps you stay on top of every stage of your selling business, from buying your inventory to fulfilling your orders.
Contact us today for a demo of the Cin7 software.