Manage Inventory Health overview

Manage Inventory Health gives you the ability to manage your low-on-stock, excess, and aged inventory in one place and use a variety of metrics to help you make decisions about whether to restock, reprice, advertise, or remove items. The Manage Inventory Health page can help you optimize your inventory within your storage or restock limits, reduce costs, and improve your Inventory Performance Index (IPI) score.

The Inventory age view gives you information about how long your units have been in the fulfilment centre. This view shows you the following information:

• The number of units in each age grouping
• The number of units that would be subject to the long-term storage fee (if applicable) on the next charge date
• The estimated long-term storage fee amount for those units, assuming no further sales

This view also shows your recent sales performance for each SKU and identifies opportunities for you to increase traffic or sales conversion to help sell through your aged inventory.

The Manage Excess Inventory tool helps you quickly identify listings that might have excess inventory levels and review relevant information to take the appropriate action. The tool highlights factors that could be limiting sales of your products and suggests actions that could help you improve inventory performance.

The Restock Inventory tool provides recommendations on products to restock, suggested order quantities, and reorder dates. It helps you keep track of your inventory so that you have enough product to meet demand. You can further customize your recommendations by providing supplier information such as order lead time and case-pack quantities

The Manage Inventory Health page offers many features to help you make the right decisions about your excess and aged inventory.

• Customize your metrics : Click Table preferences on the right of the page to choose among metrics across sales, fees, pricing, and excess and aged inventory, and to view units that are in working, shipped, or receiving status. These metrics can help you make better-informed decisions about your inventory.
  • Learn about the metrics: Hover over the “i” icon for each metric to see the definition and other important information.
  • Sort the data: Metrics that can be sorted in ascending or descending order appear in bold. Click the metric name to sort the column.
• Filter for inventory similarities: Choose among multiple filters to group products with similar inventory characteristics, including inventory age, storage type, and product condition. These filters can make it easier to assess recommendations and take the action that you decide is most appropriate.
  • Sort by inventory age: Choose an inventory age range from the Sort inventory age drop-down menu in the filter bar. Then click the up or down arrow in the Inventory age column.
• View up to 250 ASINs per page: Spend less time clicking through multiple pages to review your products’ inventory health by changing your default product quantity per page. Use the drop-down menu at the bottom of the page to choose the number of products that you want to see on the page.
• Search for similar products to evaluate inventory performance: Use the Search feature to find items that have similar product characteristics, for example, “blue” or “12-pack.” You can then sort, filter, and take action on these items.

What units are shown in the Inventory age column view?

The Inventory age column includes available plus reserved units minus units that are pending removal. These are shown for any product that has at least one unit available for sale through fulfilment by Amazon (FBA).

How is inventory age determined?

Inventory age is based on the number of days that a unit has been in the fulfilment centre. FBA accounts for inventory on a first-in, first-out basis across our entire fulfilment network. This means that each sale or removal will be applied to the inventory that has been in our fulfilment network the longest, regardless of which physical unit was actually delivered or removed.

What is the estimated long-term storage fee?

If the long-term storage fee is applicable to the Amazon store in which you sell, inventory that has been in a fulfilment centre for more than 365 days is subject to the fee. The fee is assessed on the 15th of each month. Inventory age shows the number of units that would be subject to the long-term storage fee and the estimated fee amount as of the next charge date, assuming no further sales. For more information, go to FBA long-term storage fees.

Why are my sales summary amounts and units different from my sales on the orders detail page?

Manage Inventory Health shows shipped units, and the orders detail page shows ordered units. Manage Inventory Health shipped-units data relies on sources that cause a one-day delay, whereas orders detail data is in real time.

What is included in the total quantity?

For an FBA listing, total quantity refers to fulfillable units that are available or on their way to the fulfilment centre. It does not include unfulfillable units (such as damaged units) or units that are being delivered to a buyer. For a seller-fulfilled listing, the total quantity is the same as the available quantity, as specified by the seller.

What is the estimated total storage cost?

Estimated total storage cost refers to the costs that you would incur if you took no action to help sell through or remove your inventory. This estimate includes monthly and long-term storage fees and the holding cost of capital if applicable.

How should I use the Manage Inventory Health page to manage my potentially excess and aged inventory?

Our goal is to help you easily identify potentially excess inventory and provide recommended actions aimed at helping you better manage the return on your inventory investment. In some cases, the recommendation may be to remove units from your inventory. Several factors influence our recommendations, including the following:

SKU-level alerts:

• Quality alert: Indicates that the listing may be incomplete or incorrect. Customers search and browse the Amazon catalogue using specific product details. If your listing information is incomplete or incorrect, it’s harder for customers to find, evaluate, and buy your inventory. Click Edit listing to fix listing quality issues.
• Low traffic: Indicates that a low number of customers have seen the listing. Select Improve keywords in the actions list to optimize how your listing appears in searches. Select Advertise listing to advertise through Sponsored Products to help drive more traffic to your listing.
• Low conversion: Indicates that customers are viewing the listing but aren’t following through and buying the product. Ensuring a high-quality detail page through the Edit listing feature and pricing competitively through Create sale or Lower price could help to improve conversion rates. In some cases, due to low demand, we may recommend removing some of the inventory if we calculate that removal is more cost-effective than incurring storage fees.

Demand:

In addition to the alerts, you can also view how many units of a product have been sold over the past 7, 30, 60, and 90 days by hovering over a product’s Units sold column. This will allow you to gauge sales relative to your total inventory. If you want to remove an item from your inventory, select Create removal order in the actions list.

Why does Amazon generate restock recommendations?

Good inventory management can be challenging, because the right amount of stock varies based on future demand and the cost of carrying too much or too little inventory. The recommendations are intended to give you information that you can use to determine the correct amount of inventory.

How does Amazon generate restock recommendations?

Inventory management recommendations and related estimates (for example, estimated days of supply) are based on a variety of factors, including your sales history, the season, and the product’s historical selling prices and sales volume. To fine-tune these recommendations, you can enter additional details about your business, such as the lead time that your supplier requires for new orders, reorder frequency, and minimum order quantities.

I want to keep my supplier’s name private. Am I required to enter the supplier’s name?

No. You can enter a nickname or code to represent your suppliers. Your restock recommendations will not be affected.

How do I flag ASINs as not replenishable?

To indicate that a SKU is not replenishable, take the following steps:

• On Restock inventory, select the ASIN or ASINs that are not replenishable.
• In the Action column to the right of the ASIN, select Hide recommendation. By hiding all SKUs that are associated with an ASIN, you exclude the ASIN from your in-stock rate and estimated lost sales.

Hiding replenishable SKUs is not an effective way to increase your IPI score for the following reasons:

• Hidden SKUs don’t change your IPI score.
• The SKUs that you hide will no longer show restock recommendations.
• Inaccurate FBA inventory settings may cause you to miss valuable restock opportunities.

How do I adjust my restock settings?

You can fine-tune your restock recommendations by adjusting product-level information such as supplier lead time and reorder frequency. To update these settings, click View details for a product to go to the SKU details page. You can also configure your settings in bulk by clicking Product settings.

On the SKU details page, why is an alert sometimes displayed at the bottom of the page?

These alerts are intended to alert you to certain conditions that could affect the relevance of your recommendations, such as the following:

• This product has limited sales history: This indicates that the product has less than one year of sales history. For products without a sufficient sales history or other important information, restock recommendations and related estimates may be based on your historical sales for that product and might not take into account other factors like the season.
• You do not have the lowest-price offer: This alert displays when there are multiple sellers with offers on a given product and you don’t have the lowest offering price.

Glossary

Recommended order date: The suggested date to reorder the product from your supplier to avoid running out of stock, based on your estimated days of supply and lead time.

Recommended order quantity: The recommendation for the number of units to buy from your supplier.

Restock inputs: Enter values in these fields to fine-tune your recommendations:

• Reorder frequency: The frequency at which you typically reorder the product from your supplier.
• Supplier lead time: The amount of time needed for your supplier to deliver a product to your facility.
• Case-pack quantity: Also known as order multiple, this is the number of sellable units per case ordered from your supplier.
• Minimum order quantity: The minimum number of units your supplier will allow you to order.